A report released by the Anti-Fraud Collaboration found common themes among SEC enforcement actions of financial statement fraud, including the types of fraud schemes, industries, perpetrators, and company size. The report provides insights for deterring and detecting fraud at a time when the COVID-19 pandemic heightens the risk of financial reporting fraud.

The most common type of fraud incident was improper revenue recognition (43%). Reserves manipulation (24%), inventory misstatement (11%), and loan impairment issues (11%) were other common financial statement fraud schemes.

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