Accountant Town

The traditional model of accounting fraud happens when three elements intersect:

1. Opportunity
2. Rationalization
3. Incentive

These three situations have occurred during some of the most prevalent accounting scandals of all time. However, just because these three exist does not automatically mean that fraud is in place. One should never accuse someone of fraud unless they have hard evidence and have done their due diligence! This serves as a starting point rather than an ending point in any fraud investigation.

Accounting Fraud Schemes

• Bid Rigging & Price Fixing
• Check Kiting
• Counterfeiting
• Embezzlement
• False Billing
• Forgery
• Illegal Shell Companies
• Lapping Schemes
• Tax evasion

As a fun way to further explore some examples of Accounting Fraud, check out these Accounting Scandals that have happened in recent history.

• Enron Accounting Scandal
• Worldcom Accounting Scandal
• Tyco Accounting Scandal
• HealthSouth Accounting Scandal
• Waste Management Accounting Scandal
• Saytam Accounting Scandal
• Bernie Madoff
• Charles Ponzi