Fraud Magazine states, "Financial statement fraud usually involves overstating assets, revenues, and profits and understating liabilities, expenses, and losses. However, the overall objective of the manipulation may sometimes require the opposite action. Financial statement fraud is the deliberate misrepresentation of the financial condition of an enterprise accomplished through the intentional misstatement or omission of amounts or disclosures in the financial statements to deceive financial statement users."

1. Give a specific example of how finance professionals can manipulate information on the balance sheet.
2. Give a specific example of how finance professionals can manipulate information on the income statement.
3. What are two ways in which an organization can mitigate financial fraud?
4. Why do you think financial fraud continues to be a problem in business?

Answer rating: 100% (QA)

Specific examples of how finance professionals can manipulate information on the balance sheet and income statement Manipulation on the Balance Sheet Overstating Assets Finance professionals may infla... View the full answer