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

Authors

  • NIAMH M. BRENNAN,

  • MARY McGRATH


Abstract

This paper studies 14 companies that 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.

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