Accounting Irregularities Lawyers Based in New York
Accounting irregularities is also known as accounting fraud and occurs when a business deliberately manipulates financial information to create a false impression of its financial status. This is usually done to mislead investors and stakeholders by painting a false picture of the company’s financial health for numerous reasons.
Accounting irregularities can occur in the form of understating or leaving out expenses, reporting a higher revenue than the actual figure as well as misstating assets and liabilities. When accounting fraud happens, the employee or accountant in charge of the report is involved, alongside the culpability of the entire organization. If you have suffered financial losses due to accounting irregularities, you may be entitled to legal compensation.
At Weltz Law, our attorneys are experienced in discovering accounting irregularities and can assist you in building a strong case. Schedule your consultation by calling (877) 905-7671 today.
If you suspect a company of accounting irregularities, it is important to first establish if there has been a case of fraud. For fraud to occur, a business must have intentionally falsified financial records. For instance, if a ballpark figure was left on a report with the intention of updating it once the actual figure has been verified, there is no case of fraud as the discrepancy was not deliberate. In addition, if a person or entity made false statements regarding the financial status of a business, there is no case of accounting irregularities unless records have been falsified alongside the making of those statements.
Types of Accounting Irregularities
There are several different ways a company can commit accounting fraud. Some common ones are listed below:
- Overstating Revenue: A company may falsely report revenue to cover up that it has been operating on a loss. When this happens, the company’s revenue is inflated on records, driving up share prices and conveying a false image of financial health.
- Understated or Unrecorded Expenses: Similar to overstating revenue, understating or failing to record expenses altogether can result in a higher net income than reality after calculations. Again, this gives a false impression of the company’s financial health, misleading investors and shareholders into taking actions they may not have taken otherwise.
- Misstating Assets and/or Liabilities: Companies can overstate their assets and/or understate their liabilities to give a false representation of its short-term liquidity. The reason for doing so is to give stakeholders and potential investors false reassurance of the company’s ability to pay off liabilities timely.
Meet Our Competent Attorney to Discuss Your Accounting Irregularities Case. We Represent Clients Nationwide.
If you have sustained financial losses due to a company’s accounting irregularities, there is legal recourse available to you. When you engage the services of our experienced attorneys at Weltz Law, you have 25 years of experience in FINRA arbitration and litigation behind you. We can help you navigate complex legal proceedings and fight for the justice you deserve.
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