Below relates to other articles written by the same author pertaining to fraud & creative accounting.

This section is not to turn us into detectives of fraud or creative accounting. As readers of the financial statements in the annual report, the more we know how fraud and creative accounting can occur, it’s make us more alert and vigilant! We should always learn from the past lessons from Enron, WorldCom and many other giants which have collapsed.

So, here it is – some of the following commonly Creative Accounting Gimmicks!

1 -Manipulating Sales and Accounts Receivables

Interesting articles to read:

(a) Example of Revenue Swaps & Violation Of Cut Off Period

(b) article regarding the trick in using revenue recognition to artificially inflate sales figures with the main objective of bloating the bottom line

2 -Manipulating Stocks and Cost of goods

3 -Understating liabilities expense

4 -Overstating Assets

5 -Disclosure fraud

6-Window Dressing Purpose And Some Of The Ways To Do It

7- What Is Teaming And Lading & How To Prevent it

Understand the possible strategies to alleviate or prevent fraud and where risk of fraud can be higher! :-

Fraud-prevention-Possible-strategies

Fraud-circumstances-Where risk of fraud can be higher