3) Creative Accounting
Crooked Company Management carries out creative accounting to deliberately overstate their books to the Board of Directors as better than they are. This wrong doing continues because the regulatory bodies are unable to quickly detect it. For example, a few years ago Cadbury Nigeria PLC submitted an annual report that did not show the true state of the company at the end of that accounting year. They overstated the financial position of the company over a number of years to the tune of N13 to N15 billion.
This cost the Managing Director and the Finance Director their jobs, the stocks price of the company in the Nigeria Stock Exchange fell.
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