Financial Statement Fraud: Some Lessons from US and European Case Studies

Australian Accounting Review, 17(2)(42)(July 2007): 49-61

24 Pages Posted: 12 May 2013 Last revised: 18 Nov 2014

Date Written: 2007

Abstract

This paper studies 14 companies which were subject to an official investigation arising from the publication of fraudulent financial statements. The research found senior management to be responsible for most fraud. Recording false sales was the most common method of financial statement fraud. Meeting external forecasts emerged as the primary motivation. Management discovered most fraud, although the discovery was split between incumbent and new management.

Keywords: Fraudulent Financial Reporting

JEL Classification: M41

Suggested Citation

Brennan, Niamh M. and McGrath, Mary, Financial Statement Fraud: Some Lessons from US and European Case Studies (2007). Australian Accounting Review, 17(2)(42)(July 2007): 49-61. Available at SSRN: https://ssrn.com/abstract=2257459

Niamh M. Brennan (Contact Author)

University College Dublin ( email )

Mary McGrath

Independent ( email )

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