Explore different types of fraudulent techniques/methods that firm managers may use to manipulate the firm’s financial reporting and mislead investors.

The U.S. Statement on Auditing Standards (SAS) No. 82 identifies two types of corporate fraud: financial reporting fraud and misappropriation of assets. In terms of financial reporting fraud, it refers to management behavior that seeks to inflate reported profits or other assets by deliberately overstating assets and revenues or understating expenses and liabilities in financial statements (Rezaee, 2005).

Required: Explore different types of fraudulent techniques/methods that firm managers may use to manipulate the firm’s financial reporting and mislead investors.