Failing the sniff test: Researchers find new way to spot fraud

Courtesy http://www.eurekalert.org/rss/business.xml  Sun, 11/08/2009 - 23:00

(North Carolina State University) Companies that commit fraud can find innovative ways to fudge the numbers, making it hard to tell something is wrong by looking at their financial statements.

But a new warning system sees through accounting tricks by evaluating things that are easily verifiable, such as the number of employees or the square footage a company owns.

If a company says its profits are up, but these nonfinancial measures are down, something is wrong.


 

Related items

Blowing the Whistle: Fraud and the False Claims Act
Employees who know their employer is perpetrating fraud against the federal government have the right to take action.

Watch: National emergency warning system fails again...
Another test of the EAS system failed for DirectTV customers who saw the correct message, but with Katy Perry playing in the background.

Ex-Madoff trader admits faking records since 70s
Bernard Madoff's multibillion-dollar fraud began in the early 1970s with several employees working together to fake records when no trades actually took place, a former trader at Madoff's...

BlueAnt UNOTPBAX53 X5 Bluetooth Stereo Headphone...
The X5 Stereo Bluetooth Headset is a portable multi-function device utilizing the latest cutting edge technologies allowing you to stream high quality music and make voice calls using a...

Uniden TRU9496 2-Line Corded/Cordless Digital...
With the Uniden TRU9496 5.8 GHz Digital 2-Line Expandable Phone System is the next generation of 5.8 GHz cordless phones. It's a full-featured digital answerer, with a Dialing keypad and a...


 

Post new comment

The content of this field is kept private and will not be shown publicly.
CAPTCHA
We apologize for the inconvenience. Please help fight spam.
business.marc8.com