How to Detect Business Fraud
economist.com
How to Detect Business Fraud
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Re: How to Detect Business Fraud
#2Re: How to Detect Business Fraud
#3https://outline.com/gdqBaR
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Re: How to Detect Business Fraud
#4> Each stock fraud is fraudulent in its own way. But there are common elements. One is a breach between earnings as defined by Generally Accepted Accounting Principles (GAAP) and non-GAAP measures. Another is an increase in “days payable outstanding”, a yardstick of how long it takes a company to settle bills with suppliers. Delay boosts cashflow, at least for a while. So does gathering more quickly payments you are owed. Firms with dressed-up earnings also tend to pile on debt because they lack strong underlying cashflow. And there are grounds to suspect the worst of companies that engage in a lot of acquisitions. Aligning the accounts of acquirer and acquired gives ample scope for fiddling.
> Transcripts of conference calls with stock analysts can also be revealing. If the company keeps moving the goalposts, then be on alert.
Re: How to Detect Business Fraud
#5I can't see the article. I guess I will never find out now how to detect business fraud.
Re: How to Detect Business Fraud
#6> Each stock fraud is fraudulent in its own way. But there are common elements. One is a breach between earnings as defined by Generally Accepted Accounting Principles (GAAP) and non-GAAP measures. Another is an increase in “days payable outstanding”, a yardstick of how long it takes a company to settle bills with suppliers. Delay boosts cashflow, at least for a while. So does gathering more quickly payments you are…
Thanks, I couldn't read the article.
Re: How to Detect Business Fraud
#7Highly recommend "lying for money" by Dan Davies, a very readable account of a wide range of business frauds.
Re: How to Detect Business Fraud
#8https://outline.com/gdqBaR
Re: How to Detect Business Fraud
#9https://outline.com/gdqBaR
Doesn't work. "Something went wrong We're sorry. This page failed to Outline."
Re: How to Detect Business Fraud
#10Highly recommend "lying for money" by Dan Davies, a very readable account of a wide range of business frauds.
Other great reads:
The Match King
The Smartest Guys in the Room
Bad Blood
Billion Dollar Whale
Also, famed short seller Jim Chanos teaches a class on frauds and recently posted this short list of recommendations: https://twitter.com/WallStCynic/status/1256962642499035137?s...