Every company manipulates its numbers to a certain extent to make sure budgets balance, executives score bonuses, and investors continue to offer up funding. Such creative accounting is nothing new.
However, factors such as greed, desperation, immorality, and bad judgment can cause some executives to cross the line into outright corporate fraud.
... investors should ... know how to recognize the basic warning signs of falsified statements. While the details are typically hidden, even from accountants, there are red flags in financial statements that can point to the use of manipulating methods.
Read more at:
https://www.investopedia.com/articles/analyst/071502.asp
However, factors such as greed, desperation, immorality, and bad judgment can cause some executives to cross the line into outright corporate fraud.
... investors should ... know how to recognize the basic warning signs of falsified statements. While the details are typically hidden, even from accountants, there are red flags in financial statements that can point to the use of manipulating methods.
Read more at:
https://www.investopedia.com/articles/analyst/071502.asp
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