Financial statement fraud is commonly referred to as “cooking the books” or financial reporting fraud, where the accounts of the organization are fraudulently increased or decreased to enhance the financial health of the organization and enrich personal worth.
Financial statement fraud is used to cover-up growth expectations in revenue or net income, to comply with loan agreements, to increase the amount of financing available from asset-based loans or to create a rosy picture for the shareholders.
One of the most common financial statement fraud schemes is overstatement of revenues and related overstatement of assets or understatement of liabilities. Financial statement fraud may be actionable under both the False Claims Act and the Dodd-Frank Act.
We can assist by looking for fictitious sales, incorrect asset values, hiding of liabilities, accounting inconsistencies, and third party transactions.
