Financial statement fraud includes intentional, material misrepresentations. Tracy Coenen explains the concept of financial statement fraud to a group.
Studies have shown that fraud awareness training is one of the keys to preventing and detecting fraud at corporations. If employees know what fraud looks like, they can help avoid it and they can report suspicious behavior. And corporate executives agree that fraud awareness training is key (see below graphic; click on it to view full size).
Most current ethics and compliance training programs have failed. FraudAware specializes in fraud awareness training, and comes highly recommended.