What type of fraud involves the misstatement of financial statements to deceive users?

The type of fraud that involves the misstatement of financial statements to deceive users is known as financial statement fraud. This form of fraud encompasses intentional misrepresentations or omissions of information in financial reports with the aim of influencing the decisions of users, such as investors, creditors, or regulatory agencies.

Financial statement fraud can take many forms, including inflating revenues, understating liabilities, or misclassifying expenses, among other deceptive practices. The common thread is the goal of providing a misleading view of a company's financial health, which can have serious implications for stakeholders who rely on accurate financial information for decision-making.

In this context, other options, while related to fraudulent activities, do not specifically denote the act of misrepresenting financial statements for deceptive purposes. Occupational fraud generally refers to fraud committed by employees within an organization, which can involve various schemes but isn’t limited to financial statement misstatements. Material misstatement refers to inaccuracies in financial statements that are significant enough to affect the decisions of users but doesn't specify that the misstatements are intended to deceive. Accounting fraud is a broader term that can encompass various deceitful practices related to accounting but lacks the precise focus on financial statement misrepresentation that defines financial statement fraud.