Professional Documents
Culture Documents
The
Seven
Shenanigans
3.
4.
5.
6.
7.
Shenanigan No:1
Shenanigan No. 2:
Shenanigan No. 3:
Shenanigan No. 4:
Shenanigan No. 5:
Failing to disclose all liabilities
Shenanigan No. 6:
Shenanigan No. 7:
Shifting Future Expenses to Current Period
3.
4.
5.
6.
7.
8.
9.
10.
Dishonest Management
Inadequate control environment
Changes in auditors, outside legal counsel, or CFO
Changing in accounting principles or estimates
Large deficit of CFFO relative to net income
Substantial disparity between sales and receivable growth
Substantial disparity between sales and inventory growth
Large increase or decrease in gross margins (GP/sales)
Recording revenue when risks remain with seller
Presence of commitments and contingencies