Sound Investing: Uncover Fraud and Protect Your Portfolio

1st Edition
0071594094 · 9780071594097
Are there dangerous red flags in the financial statements you've been receiving?Do you know how to spot signs of trouble in the financial statements of firms you've invested your hard earned dollars in? Do you know what to look for? How to find it? W… Read More
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Brief TOC

Introduction: The Financial Environment—A Crime Scene?

1: The Financial Pressure

2: The Opportunity

3: The Rationalization

Part 1: Background, Theories, and Concepts that Form the Framework of Accounting

4: Revenue Recognition

5: Cost Allocation

6: Valuation of Assets and Liabilities

7: Cash versus Accrual

Part 2: Detecting the Truth on the Income Statement and Statement of Stockholders’ Equity

8: Revenue Hoaxes

9: Expense Dodges

10: One Time Charges

11: Stock Accounts Shams

12: Retained Earnings Evidence

Part 3: Uncovering Clues on the Balance Sheet and Statement of Cash Flows

14: Liability Tricks

15: Classification Fiddling

16: Off0Balance Sheet Shams

17: Cash from Operations Cons

Part 4: Spotting Clues in the Notes to the Financial Statements

18: Schedules

19: Significant Accounting Policies and Changes in Them

20: Related Parties Transaction Ruse

Part 5: Evaluating the Evidence in the Annual Report and SEC Filings

22: Management Discussion and Analysis

23: Internal Control

24: Change in Auditor

25: The Auditors’ Opinion

26: News Releases and Pro Forma Earnings

?27: Executive Talent or Deceit

Are there dangerous red flags in the financial statements you've been receiving?

Do you know how to spot signs of trouble in the financial statements of firms you've invested your hard earned dollars in? Do you know what to look for? How to find it? What to do about it? This valuable knowledge could mean the difference between retiring with a healthy portfolio and suffering the devastating fallout of a scandal such as the Enron debacle.

Sound Investing is your insurance policy against fraudulent financial reporting. Financial accounting expert Kate Mooney gives you clear, easy-to-follow direction on finding red flags in financial statements, as well as the steps to take to act on these warning signs and build a solid wall of protection around your investments. You'll discover how to:

  • Interpret the financial disclosures of public corporations
  • Uncover clues to fiddling on the balance sheet
  • Detect truth on the income statement and statement of stockholder's equity
  • Identify the ruse in notes to the financial statements
  • Evaluate evidence in the annual report and SEC filings