Summary

Detecting fraudulent transactions that affect financial report integrity is a critical challenge faced by organizations worldwide. In this chapter, we covered the fraud triangle to understand potential causes of fraud. Next, we talked about how financial reports are interpreted and discussed the different kinds of financial analysis that can be done. In the next part of the chapter, we discussed how fraudulent transactions affect overall financial report integrity. We explored the most common examples of financial statement fraud in the forms of fictitious revenues, improper capitalization of expenses, and misrepresentation of liabilities and debt. As we closed the chapter, we learned about the different ways to detect and prevent fraudulent transactions and anomalies. This chapter has given you the foundational skills and capabilities to understand financial reports and fraud detection.

In the next chapter, we will learn how to use database locking techniques for financial...