Investigating Balance Sheet, Income Statement and Earnings Manipulation

Jesper Sørensen ()

Chapter Chapter 23 in Shorting Fraud, 2025, pp 235-239 from Springer

Abstract: Abstract Forensic accounting and financial statement fraud detection are major areas, with plenty of books written on the topics. The below sections are a short primer for the investor to look at some of the most common areas where fraud has been found during deep-dive investigations. This chapter offers a valuable overview of detecting fraudulent manipulation within financial statements. It outlines the fundamental components of a balance sheet and income statement, highlighting key areas prone to manipulation. The chapter explores common techniques used to inflate or suppress earnings, driven by various motives such as boosting stock prices, meeting analyst expectations, or securing loans. It emphasizes the significance of scrutinizing unusual fluctuations in revenue and costs, both over time and in comparison, to industry peers.

Date: 2025
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-031-81834-9_23

Ordering information: This item can be ordered from
http://www.springer.com/9783031818349

DOI: 10.1007/978-3-031-81834-9_23

Access Statistics for this chapter

More chapters in Springer Books from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().