accounting conservatism. We empirically investigate the extent to which U.S. firms identified by the SEC in their Enforcement … heightened legal liability guide changes in conservative accounting behavior. Compared to a matched non-fraud control sample, we … document that fraud firms have significantly lower levels of accounting conservatism in the pre-fraud period. Consistent with …

Purpose To note the increase in accounting and financial reporting matters at the Securities and Exchange Commission by … filing of a number of significant accounting fraud cases. Coupled with recent statements by the SEC and the Department of … Justice, it is clear that accounting fraud is a priority and that individuals are in the cross-hairs. This article discusses a …