Discussion: Fraud and financial statement accuracy.
First, there was Enron, then WorldCom, now optics manufacturing company, Olympus, has admitted to reporting inaccurate information in it's financial statements in order to hide losses.
How can a company "hide" losses and other damaging information in financial statements? Why is it imperative to provide investors, management and the government with accurate financial information? If incorrect, even fraudulent information is presented, what might the short- and long-term effects be on the company.