Financial Statement Fraud: Overstatement of Revenue

By far the most common way that executives manipulate financial statements is through the overstatement of revenue. The reason is simple: It’s the easiest way to improve the appearance of the company’s financial condition. Revenue can be inflated by doing things such as: Booking fictitious sales Holding the books open …

Foster a Culture of Integrity in Your Company

The average business loses approximately 5% of revenues to employee fraud. The employees are running off with money, fixed assets, and business opportunities. They are taking kickbacks from suppliers who overcharge for their products and services, and pushing contracts toward friends and relatives. Executives are manipulating financial statements to increase …