Financial Shenanigans: Cash Flow & Key Metrics Shenanigans (Part 3)

In the previous post I mentioned the brief summary of Earnings Manipulation shenanigans.
Below is the summary of some methods used to manipulate cash flow & key metrics in financial statements as identified by Howard Schilit in his book Financial Shenanigans.

Continue reading

Advertisements

Financial Shenanigans: Earnings Manipulation (Part 2)

In my previous post I mentioned the brief summary of accounting shenanigans identified by Howard Schilit in his book Financial Shenanigans used by management to manipulate earnings, cash flow and key metrics.
Below is the summary of various methods management uses to manipulate the earnings through the 7 Earnings manipulation shenanigans.

Continue reading

Financial Shenanigans (Part 1)

ShenanigansSecret or dishonest activity or maneuvering

Recently I was reading Financial Shenanigans: How to Detect Accounting Gimmicks & Fraud in Financial Reports. The book by Howard Schilit and Jeremy Perler sheds the light on various Shenanigans (methods/techniques) which management uses to cook the books to make businesses look better than they actually are.

It’s a good read for both investors and auditors as the authors have used real examples like that of Enron, WorldCom, Tyco, etc. and other lesser known corporate scams detailing how they were perpetuated before they saw the light of day and how one could have spotted the false accounting in these cases. The Shenanigans given are:

Continue reading