more-arw search

Q&A Forum

CFO Fraud

CFO FraudOr.... "How a CFO landed in prison" an article in Fraud Magazine (http://www.fraud-magazine.com/) Jan/Feb 2013 tells the story of a CFO whose misddeeds ended his career. "The perils of asset and revenue overstatements (and other schemes)... A CFO, bullied by the CEO, used creative accounting and fraudulent schemes to falsely improve a company's bottom line. Here's how he did it and what to keep an eye out for in your organization." Has this happend to you or someone you know and how did you/they deal with it? In my case it was so much as bullied but hair-brained scheming by the CEO. I just said no! I was lucky, he listened. Others, well as the article shows, are not so lucky....

Answers

Topic Expert
Keith Perry
Title: Consulting CFO and Business Operations A..
Company: Growth Accelerator
(Consulting CFO and Business Operations Advisor, Growth Accelerator) |

Wayne,

Thanks for the ref! Fun stuff. I grabbed a direct hyperlink below.
http://www.fraud-magazine.com/article.aspx?id=4294976271

KP

Topic Expert
Keith Perry
Title: Consulting CFO and Business Operations A..
Company: Growth Accelerator
(Consulting CFO and Business Operations Advisor, Growth Accelerator) |

Also, this is incidentally parallel to one of the key messages that my Accounting prof had when I was in Grad School. He'd be head of enforcement at the SEC; he wanted all us kids to be aware that a little judgement in the books, that you'll reverse out next month, results in doubling-down next month as you need to adjust for the reversal and the trend that you fudged....and you certainly don't want to take an "adjustment". Thus the slippery slope leads to ruin.

One of the sneaky things that the article bypasses is that it doesn't need to be a bully or a crook pushing this. It isn't uncommon to get the reasonable question, "we've made real progress, can't you show that somehow? I hired you to be creative....etc". Your job is to draw the line, because they might not know where it is.

My point is, this can happen without a villain in the room.

1718 views
Topics

Get Free Membership

By signing up, you will receive emails from Proformative regarding Proformative programs, events, community news and activity. You can withdraw your consent at any time. Contact Us.

Business Exchange

Browse the Business Exchange to find information, resources and peer reviews to help you select the right solution for your business.

Learn more

Contribute to Community

If you’re interested in learning more about contributing to your Proformative community, we have many ways for you to get involved. Please email content@proformative.com to learn more about becoming a speaker or contributing to the blogs/Q&A Forum.