3min chapter

Odd Lots cover image

How to Spot a Fraud When Everyone's Against You

Odd Lots

CHAPTER

What Does Accounting Fraud Look Like?

Sowaka would do funny things like it would say, hey, would bind thiso in december. It would actually announce the deal and agree it then. And then it would make a big down payment. What that looked like to me was an accounting fraud. The thing about counting fraud is, your profit looks great, but when the auditors walk in at the start of the year they're going to be full of cach because you've just had this really profitable year. So what it looked like was this trick to go ell, the cash is going to be short. We'll pretend we've sent it out to these guys, and that will hide the fraud.

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