© D.L. Crumbley
Superseded SAS No. 53 Accounting Fraud Referred To As “Irregularities”
The term “irregularities” refers to intentional misstatements or omissions of amounts or disclosures in financial statements. Irregularities include fraudulent financial reporting undertaken to render financial statements misleading, sometimes called management fraud, and misappropriation of assets, sometimes called defalcations. Irregularities may involve acts such as the following:
Manipulation falsification, or alteration of accounting records or supporting documents from which financial statements are prepared.
Misrepresentation or intentional omission of events, transactions, or other significant information.
Intentional misapplication of accounting principles relating to amounts, classifications, manner of presentation, or disclosure.