Financial Reporting Fraud: Could It Happen to You?

Authors

Mark S. Beasley, North Carolina State UniversityFollow
Joseph V. Carcello, University of Tennessee - KnoxvilleFollow
Dana R. Hermanson, Kennesaw State UniversityFollow

Document Type

Article

Publication Date

5-2001

Abstract

You think it can't happen to you. But so did more than 200 companies, slammed hard by the SEC for reporting fraud. Almost immediately, company stock prices plummeted—followed by shareholder lawsuits, bankruptcy, civil fines, and even jail time for some execs. However, say the authors, those companies could have saved themselves—by focusing on four key areas. Here are some clear “dos” and “don'ts” you can't afford to ignore.