The
Definition Of

Manipulation or falsification of accounts

 By manipulation or falsification of accounts we mean to say that the accounts are prepared in such a way as to show more profits or less profit or even to show a loss when in fact there is no loss. This type of fraud is difficult to discover. It is usually committed by directors or managers with certain objects.

Share it:

More from this Section

  • Petty cash fund
    Petty cash fund is a cash fund that is used to pay relatively small amounts such as the payments for postage due, working lunches, or taxi fares.
  • Definition of Audit
    The word “audit” is derived from the Latin word “audire”, which means to hear. In middle ages, whenever the owners of a business
  • Cost center
    A cost center refers to a responsibility center that incurs costs (and expenses) but does not directly generate revenues. Managers of cost centers...
  • Contractual interest rate
    The contractual interest rate, often referred to as the stated rate, is the rate used to determine the amount of cash interest the borrower pays and the investor receives.
  • Partners’ capital statement
    Partners’ capital statement is the owner’s equity statement for a partnership which shows the changes in each partner’s capital account and in total partnership capital during the year.
  • Outstanding liabilities
    Outstanding Liabilities are those liabilities which have not been paid at the date of the balance-sheet.
  • Registered and bearer bonds
    Bonds issued in the name of the owner are registered bonds. Interest payments on registered bonds are made by check to bondholders of record.