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Fraudulent Financial Reporting: 1987-1997. An Analysis of U.S. Public Companies. Research Commissioned by the. Committee of Sponsoring Organizations …

Website: www.coso.org | Filesize: 187kb

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Fraudulent Financial Reporting: 1987-1997
An Analysis of U.S. Public Companies
Research Commissioned by the
Committee of Sponsoring Organizations
of the Treadway Commission
Research Report Prepared by
Mark S. Beasley
North Carolina State University
Joseph V. Carcello
University of Tennessee
Dana R. Hermanson
Kennesaw State University1
March 1999
The Committee of Sponsoring Organizations of the Treadway Commission (COSO) is very
pleased to have sponsored the study, Fraudulent Financial Reporting: 1987-1997. The
study provides a comprehensive analysis of fraudulent financial reporting occurrences
investigated by the SEC since the issuance of the 1987 Report of the National Commission
on Fraudulent Financial Reporting (the “Treadway Commission” Report).
We believe the research results will be extremely useful to investors, regulators, stock
exchanges, boards of directors, and external auditors. For the first time, we have a clear
understanding of the who, why, where and how of financial reporting fraud. This
knowledge, properly applied, should help to further reduce the frequency and severity of the
fraud problem in the United States.
Some of the more critical insights of the study are: