the power point presentation "Don't get burned when someone else is cooking the books" by Gary Rubin CPA is a guide for corporate management and board members about the indicators that increase the possibility of fraudulent financial reporting. This will help them consider if these factors are present in the organizations they supervise.

1. Don’t get burned when someone else
is “cooking the books”
garyrubincpa@gmail.com www.linkedin.com/in/garyrubincpa
www.twitter.com/garyrubincpa 913-980-9906
Gary Rubin, CPA |913-980-9906|garyrubincpa@gmail.com

2. In today’s increasing litigious society, the trend by regulators to
hold a company’s senior management and board members
personally responsible for acts committed by the Company, it is
wise for such parties to consider if the operations under their
supervision are fraudulently reporting their financial results. I hope
that the following “top ten list” of the conditions that encourage
fraudulent financial reporting will assist corporate management
and board members in this process.
In other words… consider the following indicators so that you………
Don’t get burned when someone else is
“cooking the books”
Overview

3. Insufficient number of, or
inadequately skilled, financial
staff.
10
Top 10 indicators that someone may be “cooking the books”

4. Management tends to shoot
from the hip making significant
decisions without adequate due
diligence.
9
Top 10 indicators that someone may be “cooking the books”

5. A unusually large portion of
management’s compensation is
tied to achieving a specific
target or financial metric.
8
Top 10 indicators that someone may be “cooking the books”

6. Results are highly correlated
with a few complex
transactions that conclude
at/near period end.
7
Top 10 indicators that someone may be “cooking the books”

7. The company’s results seem
immune to negative industry
trends.
6
Top 10 indicators that someone may be “cooking the books”

8. A smooth trend of reported
revenues or earning even
though customers’ express
significant concerns about
product / service delivery.
5
Top 10 indicators that someone may be “cooking the books”

9. Cash flow significantly lags
reported results.
4
Top 10 indicators that someone may be “cooking the books”

10. Using excessively complex
customer contracts.
3
Top 10 indicators that someone may be “cooking the books”

11. Lax attitude by leadership
toward internal controls.
2
Top 10 indicators that someone may be “cooking the books”

12. And the No. 1 indicator of
potential fraudulent financial
reporting is….
Top 10 indicators that someone may be “cooking the books”

13. Significant accounting decisions
are made by senior leaders who
lack financial / accounting
training.
1
Top 10 indicators that someone may be “cooking the books”

14. Gary Rubin
garyrubincpa@gmail.com
www.linkedin.com/in/garyrubincpa
www.twitter.com/garyrubincpa
913-980-9906
For additional information, visit www.slideshare.net/garyrubin1/fraud-risk-checklist
Top 10 indicators that someone may be “cooking the books”