Financial Shenanigans: How to Detect Accounting Gimmicks & Fraud in Financial Reports

Howard Schilit


In Circulation

Techniques to uncover and avoid accounting frauds and scams Inflated profits . . . Suspicious write-offs . . . Shifted expenses . . . These and other dubious financial maneuvers have taken on a contemporary twist as companies pull out the stops in seeking to satisfy Wall Street. Financial Shenanigans pulls back the curtain on the current climate of accounting fraud.

It presents tools that anyone who is potentially affected by misleading business valuations from investors and lenders to managers and auditors can use to research and read financial reports, and to identify early warning signs of a company's problems. A bestseller in its first edition, Financial Shenanigans has been thoroughly updated for today's marketplace. New chapters, data, and research reveal contemporary "shenanigans" that have been known to fool even veteran researchers.

What will you learn from this book

  1. Recognizing Warning Signs: Learning to identify common accounting tricks and manipulations used to inflate earnings, hide liabilities, or distort financial performance indicators.

  2. Understanding Financial Statement Analysis: Gaining insights into financial statement analysis techniques, such as ratio analysis and cash flow analysis, to unveil potential irregularities.

  3. Spotting Revenue Recognition Tactics: Understanding how companies might manipulate revenue recognition methods to present a rosier financial picture, such as booking sales prematurely or inflating revenues.

  4. Analyzing Expense Manipulations: Recognizing techniques used to understate expenses, like capitalizing costs that should be expensed immediately or delaying necessary write-offs.

  5. Uncovering Balance Sheet Shenanigans: Identifying tactics to manipulate balance sheet items, such as understating liabilities, overstating assets, or using off-balance-sheet entities to conceal debt.

  6. Identifying Cash Flow Deception: Understanding how companies can manipulate cash flow statements to mask underlying financial weaknesses or artificially boost cash flows.

  7. Corporate Governance and Red Flags: Examining corporate governance practices and potential warning signs in management behavior, compensation structures, and board oversight.

  8. Legal and Ethical Implications: Understanding the legal and ethical implications of financial shenanigans, including the consequences for companies, executives, and auditors involved in fraudulent activities.

  9. Case Studies and Real-Life Examples: Illustrating concepts with real-life examples and case studies of companies that engaged in deceptive financial practices.

  10. Due Diligence and Investor Protection: Empowering investors, analysts, and stakeholders to conduct thorough due diligence, ask critical questions, and protect themselves against financial misrepresentations.

Language English
ISBN-10 978-0071386265
ISBN-13 9780071386265
No of pages 240
Font Size Medium
Book Publisher Mcgraw-hill Companies
Published Date 16 Apr 2002

About Author

Author : Howard Schilit


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