Fraudulent financial reporting is the intentional misrepresentation or omission of information in a company’s financial statements, which has the purpose of making the business appear profitable and more appealing to investors. It can involve manipulating figures, such as inflating sales revenue, or changing accounting methods to hide losses. Fraudulent financial reporting is punishable by law – it is a serious crime with severe consequences for those who perpetrate it. By being aware of what constitutes fraudulent financial reporting and understanding the risks involved, you can help protect your business from becoming a victim of this white collar crime.