Example of such Accounting Fraud

AREAS AND COMMON METHODS USED TO FRAUD

Bre-X Minerals

AREA: OVERALL MISREPRESENTATION

There are three (3) categories of disclosure frauds which comprises the following:

• Overall misrepresentations about the nature of the company or its products, usually made through news reports, interviews, annual reports, and elsewhere
• Misrepresentations in the management discussions and other non-financial statement
• Sections of annual reports, 10-Ks, 10-Qs, and other reports

• Misrepresentations in the footnotes to the financial statements