Spotting Financial Statement Fraud: The Red Flags You Can Actually See

Financial statement fraud is not always easy to spot, but there are often warning signs if you know what to look for. Profits may be increasing while cash is running out, debtors may suddenly grow, strange journal entries may appear at year-end, or important documents may keep going missing. Sometimes it is not one big thing that gives fraud away, but several small things that simply do not make sense. This article looks at the practical red flags you may actually see in a business and the questions you should start asking when the numbers do not match the real story.