By Monica Hubler, Full-Time Faculty, Kaplan University
Published June 2016
Fraud comes in many forms, including bribery, kickbacks, billing fraud, payroll
Elements Used for Financial Statement Fraud
One element of financial statement fraud is fictitious revenue and sales, such as revenues that have not been completed and are not ready to be recognized. This manipulation involves sending products out that were not
Yet another method is
Financial fraud is also committed by managers of the company to help increase the value of the company. This is a concern with the SEC, which is presently expanding its efforts to prosecute more companies and managers for fraud.
When a business assembles its financial statements, it wants to project itself in the best light possible and entice investors to review and invest. However, some businesses issue fraudulent financial statements that mislead investors. The SEC has stepped up their reaction to these fraudulent statements and the companies who commit fraud. Does anyone remember Enron?
Herrfeldt, B. (2014) What Is Financial Statement Fraud? Retrieved from http://www.ehow.com/about_5061193_financial-statement-fraud.html?ref=Track2&utm_source=ask
Wolfe, M. (2014) Types of Financial Statement Fraud. Retrieved from http://www.ehow.com/list_7396545_types-financial-statement-fraud.html