Fraud Examination 5th Edition by Steve Albrecht,Chad Albrecht,Conan Albrecht, Mark Zimbelman

Exercise 51

Pablo is studying financial statements to decide which companies would be wise investments. Pablo identifies Jawanna Corporation as having abnormally high financial ratios compared with other companies in its industry. Skeptical, he examines the footnotes of the financial statements further for indications that the company might be deceiving investors. Name and explain four common symptoms that fraudulent companies try to hide in the disclosures to their financial statements.