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08 Jun. 2010 | Comments (0)
- Improper use of “bill and hold” accounting.
- Recognition of revenue on a lease agreement subject to a side buy-back agreement.
- Manipulating reserves and accruals.
- Improperly delaying and capitalizing expenses.
- Writing up the value of used inventory.
- Financial fraud continues to affect companies of all sizes, with the median company having assets and revenues under $100 million. (That figure grew from $16.1 million in the 1987-1997 study.)
- The median fraud was $12.1 million.
- Many of the commonly observed boards and audit committee characteristics, such as size, meeting frequency, composition and experience do not differ meaningfully between fraud and non-fraud companies