Checklist of Accounting Fraud: How Fraud Occurs- Overstating Assets November 16, 2009 by 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