Accounting Fraud

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Accounting Fraud

Any act or attempt to falsify an accounting statement for financial gain. A clear example of accounting fraud is the act of deliberately overpricing a company's assets in order to drive up its share price. Another example is filing bankruptcy to avoid debt, rather than because of financial hardship. One of the biggest accounting frauds in history occurred during the Enron scandal in 2001.
References in periodicals archive ?
It was targeted in damages lawsuits by shareholders of major companies that collapsed after accounting frauds such as those involving retailer Yaohan Japan Corp.
in an accounting fraud that has humbled what was once a premier cosmetics and textile company, investigative sources said Saturday.
The positive aspect coming from the large accounting frauds is that there is an increasing awareness by clients that they might have problems of their own," he adds.
Hoping to restore investor faith in US companies after a wave of broadroom scandals, US President Bush on July 30 signed into law a bill that increases penalties for accounting frauds and provides new grounds for prosecuting corporate corruption.
8bn in expenses in what appears to be one of the largest ever accounting frauds.
Despite recent multi-billion dollar accounting frauds in the United States, fraud is a global problem," explains Wells.
He said the regulatory climate on benefit plans has been a critical focus amid the stock market decline and the investigation of several large corporations for accounting frauds.