What is the accounting fraud?
Accounting fraud is deliberate handling and improper recognition of revenue from the sale or cost to make a profit performance companies appear to actually better that it is. Some things that companies make that can form the fraud are:
-No mention of the prepaid advance and other active accessories
-Do not show certain categories of assets and liabilities
-Collapse short - and long-term in an amount debt.
Proceeds from the sale over-Recording is the most common technique of accounting fraud. A company can deliver products to customers that they have not yet ordered in that these customers the products after the end of the year will be return. Until the statements are made, the company recorded shipments if they were actual sales. Or a company can participate in channel stuffing. It offers products to merchants or end customers that they don't really want to, but business makes offers on the side that incentives and the granting of special privileges if dealers or customers not against the early take-over of the products. A company can also immediately the registration of products that are the result of clients to prevent these movements to recognize sales revenue in the current year
The other way a fraud business accounting by underregistration costs such as the non-inclusion of the costs of depreciation. Or a company may choose not to include all costs in the cost of the sale in a period of goods sold. This would be the highest gross margin, but the company would include products of inventory of the assets which are not in stock, because they were shipped to customers.
A company can also do want to not include losses of assets that must be recognized, as bad debtors, or it may not make note of the stocks below the lower of cost or market rule falls. A company may not even mention the total amount of the liability for a last, that are the responsibility underestimated in the balance sheet of the company. Profit, therefore, be overestimated.
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