You Must Know These Types Of Financial Statement Frauds

Profit regulation is closely related to increasing profits or the performance of an organization because the level of profits or profits obtained is often associated with the achievements of management. In addition to the word earnings, the term retained earnings are not foreign to be heard in the company’s balance sheet and play an important role in the company’s financial statements. Management efforts to manipulate financial information or manipulate earnings and can also manipulate retained earnings in the presentation of financial statements so as to present information that misleads investors and creditors. This is just one example of fraud that can occur in the process of making financial reports in your company. Aside from that, there are other types of fraud that you must prevent. You can also hire the best BAS Agent Rydalmere to assist your company in making financial statements that are fully accurate.

Fraud has a different type. This type is divided into two types, namely between the actor and the action. The following detailed information about the Fraud management consultant is automatically complete.

1. Types of fraud based on the perpetrators:

• Employee fraud: is an accounting fraud committed by some internal employees of a company organization.

• Fraud management is an act of accounting fraud carried out by management by using financial statements as one of the media. Most of them do this to trick the company’s stakeholders.

2. Types of fraud based on actions:

• Misappropriation of assets: is one of the acts of intentional misuse of company assets for the sake of certain personal and group matters, usually most often done by employees, such as an example of misappropriation of company cash funds.

• Fraudulent financial reporting: is something intentional to allow the amount and recording of financial statements to cover the users of the financial statements, usually often done by management to deceive investors and creditors, such as examples of overstating assets.

Thus the fraudulent financial statements that can occur in your company. But the act of fraud or fraud that occurs in the actual company can still be prevented as early as possible as long as you have an accounting system that is completely systematic and can be monitored in real-time. And the use of accounting software can be one of the most appropriate choices.