This paper provides new evidence on the characteristics of firms that commit financial statement fraud. We examine how previous earnings management impacts the likelihood that a firm will commit financial statement fraud and in doing so develop three new fraud predictors. Using a sample of 54...

Professional accountants external to the organization are appointed by statute of law to verify the authenticity of financial statements of an organization. They are commonly known as statutory auditors. Since financial decision of a large part of the society related to the business depends upon...

This case describes the events surrounding accounting fraud at Satyam – what was then India's fourth largest IT services company – and the startling admission by B. Ramalinga Raju, the Founder and Chairman of Saytam Computer Services, that he had been over-stating Satyam's profits over a...