Potential Indicators Of Balance Sheet And Income Statement Fraud

Abstract

This student case study is intended for use in the accounting classroom to develop a stronger understanding of potential fraud indicators and their level of significance. Auditing standard setters have responded to high profile accounting frauds by increasing the responsibility of auditors to find and report on accounting frauds. This case study presents a number of fraud indicators that can be investigated and discussed as part of a class assignment.  This case study is unique in that it makes a clear differentiation between quality of revenue and quality of earnings.