What You Need to Know
The article presents an interview with Dana R. Hermanson, one of the authors of a study on the rise in fraudulent financial reporting. He points out that the recent study showed 22 cases with total cumulative misappropriation of more than 1 billion U.S. dollars. He indicates that revenue fraud is motivated by how the market looks at companies. He suggests having an independent audit committee, hiring top management team members with the right culture and offering protection to whistleblowers as protection against financial fraud reporting.