Which item is an analytical symptom of asset overstatement fraud?

The correct choice points to inappropriate capitalization of advertising costs as an analytical symptom of asset overstatement fraud. In forensic accounting and fraud detection, capitalizing costs allows a company to spread expenses over multiple periods instead of recognizing them immediately as costs. When a company improperly capitalizes advertising costs, it inflates the asset values on the balance sheet. This overstatement can mislead stakeholders regarding the financial health of the organization, creating a distortion of the financial statements.

This choice highlights the manipulation of accounting practices where expenses that should be recognized as period costs are improperly recorded as assets. Such actions can enhance perceived profitability and asset values, serving as a clear symptom of fraudulent intent if it deviates from generally accepted accounting principles (GAAP). This practice not only affects the integrity of financial reporting but can also lead to severe consequences if discovered during audits or investigative reviews.

In contrast, the other choices pertain to different issues or fraudulent indicators that do not specifically point to the overstatement of assets. Missing documents, unauthorized transactions, or unbalanced ledgers can indicate a range of irregularities, however, they do not directly reflect the kind of analytical symptom associated with inflating asset values in accounting records.