Financial Shenanigans: How to Detect Accounting Gimmicks and Fraud in Financial Reports, Fourth Edition
- 5h 7m
- Howard M. Schilit, Jeremy Perler, Yoni Engelhart
- McGraw-Hill
- 2018
The bestselling classic from the Sherlock Holmes of Accounting—updated to reflect key case studies from the past quarter century and the dishonest tactics used to mislead investors.
This fourth edition of the bestselling guide shines a light on the most shocking frauds and financial reporting offenders, and gives investors the tools they need to spot deceptive financial reporting in the global markets. This unparalleled guide provides the investigative tools you need to detect:
- Corporate cultures that incentivize dishonest practices
- The latest tricks companies use to exaggerate revenue and earnings
- Techniques devised by management to manipulate cash flow as easily as earnings
- Companies that use misleading metrics to fool investors about their financial performance
- How companies use acquisitions to hide deterioration in their underlying business
You’ll learn everything you need to know to unearth deceptive reporting and avoid costly mistakes. This new edition focuses on the key case studies from the past quarter century and brings you up to date on accounting chicanery in the global markets. Howard Schilit and his team of renowned forensic accounting experts reveal the most shocking frauds, expose financial reporting miscreants, and unveil the latest methods companies use to mislead investors.
About the Authors
Dr. Howard M. Schilit, PhD, CPA, is the founder and CEO of Schilit Forensics, an investment research consultancy. Howard is a pioneer in the field of detecting accounting chicanery and has testified before Congress and the SEC. Previously, he founded and led CFRA and was a professor at American University.
Jeremy Perler, CFA, CPA is a globally recognized expert in forensic accounting investment research. He is a partner at Schilit Forensics, a forensic accounting research consultancy serving institutional investors. Previously, Jeremy was a forensic accounting analyst for Coatue Management, a global long/short equity hedge fund; Director of Research for CFRA; and auditor for PricewaterhouseCoopers. In addition, he serves on the Standing Advisory Group of the PCAOB, and he previously served on the FASB's Financial Accounting Standards Advisory Council (FASAC). Jeremy is a CFA charterholder, and holds a BBA and Master of Accounting from the University of Michigan Ross School of Business.
Yoni Engelhart, CFA is a globally recognized expert in forensic accounting investment research. He is a partner at Schilit Forensics, a forensic accounting research consultancy serving institutional investors. Previously, Yoni worked as an Investment Principal at Partners Capital, a private investment office; Product Management Specialist at Wellington Management Company; and Senior Analyst, Director of Quantitative Research, and Director of Business Strategy at CFRA. He has been a guest lecturer at Harvard, Stanford, Columbia, Wharton, University of Chicago, and many other top business schools. Yoni is a CFA charterholder, and holds a BS from the University of Maryland, and an MB A from Harvard Business School.
In this Book
-
25 Years of Shenanigans
-
Just Touch up the X-Rays
-
Earnings Manipulation Shenanigan No. 1—Recording Revenue Too Soon
-
Earnings Manipulation Shenanigan No. 2—Recording Bogus Revenue
-
Earnings Manipulation Shenanigan No. 3—Boosting Income Using One-Time or Unsustainable Activities
-
Earnings Manipulation Shenanigan No. 4—Shifting Current Expenses to a Later Period
-
Earnings Manipulation Shenanigan No. 5—Employing other Techniques to Hide Expenses or Losses
-
Earnings Manipulation Shenanigan No. 6—Shifting Current Income to a Later Period
-
Earnings Manipulation Shenanigan No. 7—Shifting Future Expenses to the Current Period
-
Cash Flow Shenanigan No. 1—Shifting Financing Cash Inflows to the Operating Section
-
Cash Flow Shenanigan No. 2—Moving Operating Cash Outflows to other Sections
-
Cash Flow Shenanigan No. 3—Boosting Operating Cash Flow Using Unsustainable Activities
-
Key Metric Shenanigan No. 1—Showcasing Misleading Metrics That Overstate Performance
-
Key Metric Shenanigan No. 2—Distorting Balance Sheet Metrics to Avoid Showing Deterioration
-
Acquisition Accounting Shenanigan No. 1—Artificially Boosting Revenue and Earnings
-
Acquisition Accounting Shenanigan No. 2—Inflating Reported Cash Flow
-
Acquisition Accounting Shenanigan No. 3—Manipulating Key Metrics
-
The Unraveling
-
The Forensic Mindset
