X hits on this document

Powerpoint document

Forensic Accounting, Forensic Techniques, and Fraud Detection Copyrighted 2001 D. Larry Crumbley, ... - page 203 / 352

1612 views

0 shares

1 downloads

0 comments

203 / 352

203

© D.L. Crumbley

Wrong Way Earnings Management

Freddie Mac understated past earnings as much as $5 billion.

Certain transactions and accounting policies were “implemented with a view to their effect on earnings” (e.g., to smooth earnings).

Restatements will result in higher earnings in prior periods but lower earnings in future periods.

Employees appeared to knowingly violate accounting rules in an effort to manipulate earnings.

Source: Patrick Barta and J.D. McKinnon, “Freddie Mac Profits May Have Been Low By Up to $4.5 Billion,” Wall Street J., June 26, 2003, pp. C-1 and C-11.

Document info
Document views1612
Page views1633
Page last viewedWed Dec 07 14:25:03 UTC 2016
Pages352
Paragraphs4554
Words31092

Comments