What Every Investor Needs to Know About Accounting Fraud

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What Every Investor Needs to Know About Accounting Fraud

What Every Investor Needs to Know About Accounting Fraud

Authors: Jeff Madura

Published: December 2003

eISBN: 9780071442923 0071442928 | ISBN: 9780071422765

Contents

Chapter 1 The Accounting Mess

Part I: How Accounting Can Distort Stock Values

Chapter 2 The Link Between Accounting and Stock Valuation

Chapter 3 Background on Deceptive Accounting

Chapter 4 How Accounting Can Be Used to Inflate Revenue

Chapter 5 How Accounting Can Deflate Expenses

Chapter 6 How Accounting Can Inflate Growth

Chapter 7 How Accounting Can Reduce Perceived Risk

Chapter 8 How Accounting Can Contaminate Your Investment Strategies

Part II: Accounting Controls: Out of Control

Chapter 9 Why Auditing May Not Prevent Deceptive Accounting

Chapter 10 Why Credit Rating Agencies May Not Prevent Deceptive Accounting

Chapter 11 Why Analysts May Not Prevent Deceptive Accounting

Part III: How Boards of Directors May Prevent Deceptive Accounting

Chapter 12 Board Culture to Serve Shareholders

Chapter 13 Board Mandate to Revise Executive Compensation Structure

Chapter 14 Board Mandate to Report Stock Option Expenses

Chapter 15 Board Efforts to Tame Corporate Executives

Part IV: How Governance May Prevent Deceptive Accounting

Chapter 16 Governance by the Financial Accounting Standards Board

Chapter 17 Governance by the SEC

Chapter 18 Governance Enforced by the Sarbanes-Oxley Act

Chapter 19 Governance by Stock Exchanges

Part V: How Investors Can Cope with Deceptive Accounting

Chapter 20 Look beyond Earnings

Chapter 21 Use a Long-Term Perspective

Chapter 22 Don’t Trust Anyone

Chapter 23 Invest in Mutual Funds

Chapter 24 Invest in Exchange-Traded Funds

Chapter 25 Invest in Other Securities

Appendix A: Investing in Individual Stocks

Appendix B: The Danger of Initial Public Offerings

Index