Fraud Basics

Financial Statement Fraud (Part One)

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Written by: ACFE Staff
Date: November 1, 2003
Read Time: 6 mins

Financial statement fraud usually involves overstating assets, revenues and profits and understating liabilities, expenses and losses. However, the overall objective of the manipulation may sometimes require the opposite action.

Financial statement fraud is the deliberate misrepresentation of the financial condition of an enterprise accomplished through the intentional misstatement or omission of amounts or disclosures in the financial statements to deceive financial statement users.

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