When the managers of a company provide false financial information, it's called financial statement fraud. Financial statement fraud is usually committed with the intention of making financial gains, such as using the false information to increase the value of the company's stock and deceiving unsuspecting investors, lenders, tax authorities and governments. Financial statement fraud is the most costly type of fraud committed at companies. Although financial statement fraud is present in only about 10% of internal fraud cases, the median cost of a financial statement fraud is $2 million. At the end of this session, participants will be able to identify the most common ways financial statements are fraudulently manipulated; recognize some of the common red flags of financial statement fraud; explain why traditional independent audits fail to detect fraud most of the time..