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Terms in this set (40)

1. Recording revenue too soon.
---> Recording revenue before completing any obligations under the contract.
---> Recording revenue far in excess of work completed on the contract.
---> Recording revenue before the buyer's final acceptance of the product.
---> Recording revenue when the buyer's payment remains uncertain or unnecessary.
2. Recording bogus revenue.
---> Recording revenue from transactions that lack economic substance.
---> Recording revenue from transactions that lack a reasonable arm's-length process.
---> Recording revenue on receipts from non-revenue-producing transactions.
---> Recording revenue from appropriate transactions, but at inflated amounts.
3. Boosting income using one-time or unsustainable activities.
---> Boosting income using one-time events.
---> Boosting income through misleading classifications.
4. Shifting current expenses to a later period.
---> Improperly capitalizing normal operating expenses.
---> Amortizing costs too slowly.
---> Failing to write down assets with impaired value.
---> Failing to record expenses for uncollectible receivables and devalued investments.
5. Employing other techniques to hide expenses or losses.
---> Failing to record an expense from a current transaction.
---> Failing to record an expense for a necessary accrual or reversing a past expense.
---> Failing to record or reducing expenses by using aggressive accounting assumptions.
---> Reducing expenses by releasing bogus reserves from previous charges.
6. Shifting current income to a later period.
---> Creating reserves (often in conjunction with an acquisition) and releasing them into income in a later period.
---> Improperly accounting for derivatives in order to smooth income.
---> Recording current-period sales in a later period.
7. Shifting future expenses to an earlier period.
---> Improperly writing off assets in the current period to avoid expenses in a future period.
---> Improperly recording charges to establish reserves used to reduce future expenses.