Sunday, July 9th, 2006
How Fraud Occurs- Overstating Assets (Part 5)
Overstating Asset Fraud
An example: WorldCom
- Overstatement of current assets (e.g. marketable securities)
- Overstating pension assets
- Capitalizing as assets amounts that should be expensed
- Failing to record depreciation/amortization expense
- Overstating assets through mergers and acquisitions
- Overstating inventory and receivables (covered earlier)






Leave a Reply