What is financial statements fraud? According to Scott Beaver, financial statement fraud is the deliberate misrepresentation of a company’s financial statements, whether through omission or exaggeration, to create a more positive impression of the company’s financial position, performance and cash flow. When it comes to financial statement fraud, most cases involve intentionally misrepresenting accounting such as overstating revenue, fictitious transactions, concealment of liabilities and obligations, improper or inadequate disclosures, falsifying expenses, misappropriations, etc. In the public sector or in the government, the Commission on Audit provides in its Financial Audit Manual some examples of circumstances that may indicate the possibility...