© D.L. Crumbley
Fraudulent financial reporting may occur by the following:
Manipulation, falsification, or alteration of accounting records, or supporting documents from which financial statements are prepared.
Misrepresentation in or intentional omission from the financial statements of events, transactions, or other significant information.
Intentional misapplication of accounting principles relating to amounts, classification, manner of presentation, or disclosure.
Source: SAS No. 99, “Consideration of Fraud in a Financial Statement Audit,” New York: AICPA