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    The Eight Accounting Fraud or Red Flag Signs To Look Out In Stocks

    1. Growth in revenue much higher than it’s peers

    2. The rate of account receivable grows much faster than it’s growth in revenue

    3. A large proportion of its revenue is booked in the last quarter even though it is a non-seasonal business

    4. Cash flow from operations is much lower than operating income

    5. Aggressive accounting assumptions are used

    6. Typical current assets like inventory and account receivable are included in non-current assets

    7. High goodwill relative to total assets value

    8. Use of special purpose vehicle

    In Conclusion


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