Example of such Accounting Fraud

AREAS AND COMMON METHODS USED TO FRAUD

WorldCom

AREA: OVERSTATING ASSETS

• Overstatement of current assets (e.g. marketable securities)
• Overstating pension assets
• Capitalizing as assets amounts that should be expensed
• Failing to record depreciation/amortization expense
• Overstating assets through mergers and acquisitions
• Overstating inventory and receivables