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What is financial statement fraud and who commits this crime

What is financial statement fraud and who commits this crime and why?

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Financial statement fraud is the deliberate misstatement of financial data in an attempt to deceive the users of the financial statements, including the investors. When someone commits financial statement fraud, it is typically due to greed and/or fear. When it is committed in the context of greed, it is because employees (oftentimes executives) want more - more money, a higher bonus, more of what the company has, because their earnings are high. It was very common for companies to tie performance to bonuses. At the end of the year, bonuses were given based on what the company's net income was. The higher the net income, which would technically mean the company is performing well based on the higher net ...

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What is financial statement fraud and who commits this crime and why?

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