This is the fifth in a series of articles examining the creation of the Financial Reporting and Audit Task Force along with a Center for Risk and Quantitative Analysis. Today’s article examines select cases brought in the wake of Chairman Levitt’s Numbers Game speech in which issuers and others utilized a variety of improper techniques to distort financial statement trends.
While some issuers utilized primarily one improper approach to ensure that the firm met its numbers, others utilized a variety of techniques. In those instances issuers frequently enhanced revenue, manipulated expenses and managed trends. Select examples of these cases include:
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For more commentary on developing securities issues, visit SEC Actions, a blog by Thomas Gorman.
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