Purchase Solution

What is financial statement fraud and who commits this crime

Not what you're looking for?

Ask Custom Question

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

Purchase this Solution

Solution Summary

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

Solution Preview

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 ...

Purchase this Solution


Free BrainMass Quizzes
Business Processes

This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.

Writing Business Plans

This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.

Change and Resistance within Organizations

This quiz intended to help students understand change and resistance in organizations

Balance Sheet

The Fundamental Classified Balance Sheet. What to know to make it easy.

Learning Lean

This quiz will help you understand the basic concepts of Lean.