Financial Statements Fraud
Financial Statements Fraud
Table of Contents
Introduction ........................................................................................................ 1 Definition ............................................................................................................. 1 Purpose of Financial Statements Fraud ..................................................... 1 Financial Statement Fraud Schemes ........................................................... 3 Inappropriate Revenue Recognition .......................................................................................... 3 Overstatement of Assets ................................................................................................................. 3 Understatement of Expenses and Liabilities ........................................................................... 3
Reasons of Preparing Fraudulent Financial Statements ..................... 6 Concluding Remarks ........................................................................................ 8 References ........................................................................................................... 9
By Tullu Merechi, American Public University, November 2014
0
Financial Statements Fraud
Introduction Fraud is a dishonest intentional exercise targeted to gain unfair and unlawful benefits. Financial Statements Fraud in particular is the intentional misstatement or omission of essential financial information in order to influence users’ business decisions. Users of financial information, among
Table of Contents
Introduction ........................................................................................................ 1 Definition ............................................................................................................. 1 Purpose of Financial Statements Fraud ..................................................... 1 Financial Statement Fraud Schemes ........................................................... 3 Inappropriate Revenue Recognition .......................................................................................... 3 Overstatement of Assets ................................................................................................................. 3 Understatement of Expenses and Liabilities ........................................................................... 3
Reasons of Preparing Fraudulent Financial Statements ..................... 6 Concluding Remarks ........................................................................................ 8 References ........................................................................................................... 9
By Tullu Merechi, American Public University, November 2014
0
Financial Statements Fraud
Introduction Fraud is a dishonest intentional exercise targeted to gain unfair and unlawful benefits. Financial Statements Fraud in particular is the intentional misstatement or omission of essential financial information in order to influence users’ business decisions. Users of financial information, among