Learning how fraudulent transactions affect overall financial report integrity

In this section, we will discuss fraudulent transactions and their damaging effects on the overall integrity of financial reports. Fraudulent transactions, characterized by deceit, manipulation, and misrepresentation, pose a significant threat to the credibility and accuracy of financial information.

There are governing bodies all over the world that are involved in fraud prevention to safeguard the interests of investors, uphold a fair and productive market, and aid in capital investments. Some of the major regulatory bodies in the world include the Securities and Exchange Commission (SEC) in the United States, the Financial Conduct Authority (FCA) in the United Kingdom, the Financial Services Agency (FSA) in Japan, and the Australian Securities and Investments Commission (ASIC) in Australia.

According to the SEC, the most common reasons for committing fraud are as follows:

• Fulfilling earnings...