Sunday, July 9th, 2006

How Fraud Occurs-Understating Liabilities / Expense Fraud (Part 4)

Understating Liability/Expense Fraud
(a good example: Enron)

  • Not recording accounts payable
  • Not recording accrued liabilities
  • Recording unearned revenues as earned
  • Not recording warranty or service liabilities
  • Not recording loans or keep liabilities off the books
  • Not recording contingent liabilities

Leave a Reply