Overview
Main description
From the “ Sherlock Holmes of Accounting,”
the tools you need to stay a step ahead of the crooks
“Howard Schilit is the authority on forensic accounting. Financial Shenanigans is invaluable reading
for market participants seeking to identify deceptive behavior in company financial statements.”
Julian Robertson, legendary investor and founder, Tiger Management
“A must-read! The authors teach forensic financial statement analysis in an easy-to-digest format with
lots of war stories. Guaranteed to help investors in their quest
to avoid ticking time bombs in their portfolios.”
Marc A. Siegel, board member, Financial Accounting Standards Board
“This is a timeless guide to better understand how financial malfeasance can be spotted early.
Financial Shenanigans teaches all of us fraud-detection-made-easy.”
Jules Kroll, pioneering private investigator and founder of Kroll Associates and K2 Global
“Required reading for every investor who desires to avoid financial losses.
This new edition is a classic and better than ever.”
Thornton L. O’glove, author, Quality of Earnings
“If the original Financial Shenanigans was the Bible of detecting accounting frauds, then this latest
version is the Talmud of cooked books. Regulators, audit committee members, and business journalists
should be required to read this work if they are involved in public companies.”
Boris Feldman, partner, Wilson Sonsini Goodrich & Rosati, Palo Alto
“An incisive and entertaining review of the recipes used by corporations and executives to ‘cook the
books.’ It’s a must-read for investors, lawyers, corporate directors, and anyone else interested in the
integrity of the accounting and governance process.”
Joseph A. Grundfest, professor of law and business and codirector,
Rock Center on Corporate Governance, Stanford Law School
About the Book:
With major financial scandals popping
up in greater numbers—and with more
inevitably on the way—it has never been more
important for you to understand what dishonest
companies do to trick investors.
Since the early 1990s, Financial Shenanigans
has been helping investors unearth deceptive
financial reporting at the most critical time—
before they suffer major losses.
Now, the third
edition broadens its focus to include the newest,
most sophisticated techniques companies
use to mislead investors.
Referred to as the “Sherlock Holmes of
Accounting” by BusinessWeek, Howard Schilit
and renowned forensic accounting expert
Jeremy Perler take you deeper into the corporate
bag of tricks, exposing new levels of
accounting gimmickry and arming you with
the investigative tools you need to detect:
- Earnings Manipulation Shenanigans: Learn
the latest tricks companies use to exaggerate
revenue and earnings.
- Cash Flow Shenanigans: Discover new techniques
devised by management that allow it to
manipulate cash flow as easily as earnings.
- Key Metrics Shenanigans: See how companies
use misleading “key”metrics to fool investors
about their financial performance.
Financial Shenanigans brings you completely
up to date on accounting chicanery in the global
markets, shining a light on the most shocking
frauds and financial reporting miscreants.
This insightful, detailed guide written by recognized
experts on the subject provides the
knowledge and tools you need to spot even the
most subtle signs of financial shenanigans.
Author comments
Howard M. Schilit, Ph.D., CPA, is the founder
and chief executive officer of the Financial
Shenanigans Detection (FSD) Group, LLC,
which alerts its clients to accounting chicanery.
Previously he founded the Center for Financial
Research and Analysis (CFRA). Smart
Money magazine twice selected him as one of
the “Power 30” of investing.
Jeremy Perler, CFA, CPA, is codirector of research
of RiskMetrics Group’s forensic accounting
research boutique (formerly CFRA).
RiskMetrics is a global leader in risk management,
corporate governance, and financial
research services. Mr. Perler is frequently
featured at industry conferences and training
seminars, as well as in media outlets such as
Barron’s, BusinessWeek, The Wall Street Journal,
and CNBC.
