Ethics in Accounting and Finance
Fraudulent financial reporting refers to the intentional misrepresentation or omission of financial information in order to deceive users of the financial statements. This unethical practice can lead to inflated earnings, hidden liabilities, and an overall distorted view of a company’s financial health. It is often associated with major accounting scandals, where corporations manipulate their financial data to maintain a favorable image, thus eroding trust among investors and stakeholders.
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