ABSTRACT
This chapter examines the way in which financial reports are manipulated, and how this is achieved. Methods discussed are a) creative accounting and b) the more serious aggressive accounting and ultimately fraud. Examples of corporate fraud are highlighted. The chapter also discusses impression management (the art of presenting accounts in the best light possible). The motivation for such manipulation is considered in the light of available empirical evidence. Finally, a rough summary of how scandals are uncovered is provided.
