Summary of What Every Investor Needs to Know About Accounting Fraud

Looking for the book?
We have the summary! Get the key insights in just 10 minutes.

What Every Investor Needs to Know About Accounting Fraud book summary
Start getting smarter:
or see our plans

Rating

8 Overall

10 Applicability

6 Innovation

8 Style


Recommendation

Author Jeff Madura provides an excellent short guide through the perilous territory of financial statement analysis. Wasting no words, he presents all the average individual investor absolutely needs to know about corporate financial reports. He tells you why you shouldn’t trust them, and then shows you how to apply a skeptic’s perspective to figuring out what reported numbers really mean. The market for investment books is a crowded one, but this is a standout: a thoroughgoing and systematic combination of curiosity, knowledge and prudent suspicion. getAbstract.com highly recommends this book to all investors. Before you climb into the investors’ ring, carefully consider the advice that referees give boxers before a bout: Protect yourself at all times.

In this summary, you will learn

  • Why you should not trust financial statements; and
  • What to look for to avoid becoming a victim of corporate fraud.
 

About the Author

Jeff Madura is the SunTrust Professor of Finance at Florida Atlantic University and author of the textbooks International Financial Management and Financial Markets and Institutions.

 

Summary

Scandal
The recent plague of corporate accounting and reporting scandals gave many investors the willies — and that's good. P.T. Barnum supposedly said a sucker is born every minute, but the pace of life was a lot slower in his day. The accounting system is so complex and investors are...

More on this topic

Customers who read this summary also read

The End of Accounting and the Path Forward for Investors and Managers
The End of Accounting and the Path Forward for Investors and Managers
8
Penny Stock Chronicles
Penny Stock Chronicles
8
Can America’s Companies Survive America’s Most Aggressive Investors?
Can America’s Companies Survive America’s Most Aggressive Investors?
8
Go Long
Go Long
8
Security Analysis
Security Analysis
8
Warren Buffett and the Interpretation of Financial Statements
Warren Buffett and the Interpretation of Financial Statements
8

Related Channels

Comment on this summary