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GAAP.RUNewsFinancial Fraud Leads to Bankruptcy, Failure

Financial Fraud Leads to Bankruptcy, Failure

Publication date: 24 May 2010

Fraudulent financial reporting by U.S. public companies often results in bankruptcy or business failure, according to a new study, and often results in significant immediate losses for shareholders and penalties for executives.

The study by the Committee of Sponsoring Organizations of the Treadway Commission, also known as COSO, examined financial statement fraud allegations investigated by the U.S. Securities and Exchange Commission (SEC): it appears that fraudulent financial reporting by U.S. public companies often results in bankruptcy or business failure.