Financial Shenanigans: How to Detect Accounting Gimmicks and Fraud in Financial Reports
The bestselling classic from the Sherlock Holmes of Accounting--updated to reflect the key case studies and most important lessons from the past quarter century. This fourth edition of the classic guide shines a light on the most shocking frauds and financial reporting offenders of the last twenty-five years, and gives investors the tools they 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 This new edition focuses on the key case studies and most important lessons 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 expose financial reporting miscreants and unveil the latest methods companies use to mislead investors. You'll learn everything you need to know to unearth deceptive reporting and avoid costly mistakes.
From the Back Cover It's so much easier to be a good investor if you can avoid problems. This book is required reading for all investors who wish to enhance their forensic intuition. Howard, Jeremy and Yoni use excellent and powerful vignettes to illustrate how to detect accounting trickery and financial deception. --Philippe Laffont , Founder, Coatue Management Howard Schilit and his team are true experts at identifying deceptive and manipulative accounting. Financial Shenanigans is an invaluable resource for every discerning investor. --Chase Coleman , Founder, Tiger Global Management The name Howard Schilit is synonymous with accounting forensics. Earlier editions of this book were my go-to reference for fraud detection techniques and illustrative case studies. This latest edition adds important new insights on acquisition-related gimmickries. It is a must-have resource for all serious investors. -- Charles M. C. Lee , Moghadan Family Professor of Management and Professor of Accounting, Stanford Graduate School of Business Though Accounting is surely the language of business, Howard is the master of teaching investors how to read between the lines. --Joel Greenblatt , Managing Principal, Gotham Asset Management A must-read! The authors teach forensic financial statement analysis in an easy-to-digest format with lots of war stories. Guaranteed to help investors in their quest to avoid ticking time bombs in their portfolios. --Marc A. Siegel , board member, Financial Accounting Standards Board