Financial Shenanigans, Third Edition

From the “ Sherlock Holmes of Accounting,”the tools you need to stay a step ahead of the crooks

“Howard Schilit is the authority on forensic accounting. Financial Shenanigans is invaluable readingfor market participants seeking to identify deceptive behavior in company financial statements.”Julian Robertson, legendary investor and founder, Tiger Management

“A must-read! The authors teach forensic financial statement analysis in an easy-to-digest format withlots of war stories. Guaranteed to help investors in their questto avoid ticking time bombs in their portfolios.”
Marc A. Siegel, board member, Financial Accounting Standards Board

“This is a timeless guide to better understand how financial malfeasance can be spotted early.Financial Shenanigans teaches all of us fraud-detection-made-easy.”
Jules Kroll, pioneering private investigator and founder of Kroll Associates and K2 Global

“Required reading for every investor who desires to avoid financial losses.This new edition is a classic and better than ever.”
Thornton L. O’glove, author, Quality of Earnings

“If the original Financial Shenanigans was the Bible of detecting accounting frauds, then this latestversion is the Talmud of cooked books. Regulators, audit committee members, and business journalistsshould be required to read this work if they are involved in public companies.”
Boris Feldman, partner, Wilson Sonsini Goodrich & Rosati, Palo Alto

“An incisive and entertaining review of the recipes used by corporations and executives to ‘cook thebooks.’ It’s a must-read for investors, lawyers, corporate directors, and anyone else interested in theintegrity of the accounting and governance process.”
Joseph A. Grundfest, professor of law and business and codirector,Rock Center on Corporate Governance, Stanford Law School

About the Book:

With major financial scandals poppingup in greater numbers—and with moreinevitably on the way—it has never been moreimportant for you to understand what dishonestcompanies do to trick investors.Since the early 1990s, Financial Shenaniganshas been helping investors unearth deceptivefinancial reporting at the most critical time—before they suffer major losses.

Now, the thirdedition broadens its focus to include the newest,most sophisticated techniques companiesuse to mislead investors.

Referred to as the “Sherlock Holmes ofAccounting” by BusinessWeek, Howard Schilitand renowned forensic accounting expertJeremy Perler take you deeper into the corporatebag of tricks, exposing new levels ofaccounting gimmickry and arming you withthe investigative tools you need to detect:

• Earnings Manipulation Shenanigans: Learnthe latest tricks companies use to exaggeraterevenue and earnings.
• Cash Flow Shenanigans: Discover new techniquesdevised by management that allow it tomanipulate cash flow as easily as earnings.
• Key Metrics Shenanigans: See how companiesuse misleading “key”metrics to fool investorsabout their financial performance.

Financial Shenanigans brings you completelyup to date on accounting chicanery in the globalmarkets, shining a light on the most shockingfrauds and financial reporting miscreants.This insightful, detailed guide written by recognizedexperts on the subject provides theknowledge and tools you need to spot even themost subtle signs of financial shenanigans.

Howard Schilit, Ph.D., CPA, is the founderand chief executive officer of the FinancialShenanigans Detection (FSD) Group, LLC,which alerts its clients to accounting chicanery.Previously he founded the Center for FinancialResearch and Analysis (CFRA). SmartMoney magazine twice selected him as one ofthe “Power 30” of investing.
Jeremy Perler, CFA, CPA, is codirector of researchof RiskMetrics Group’s forensic accountingresearch boutique (formerly CFRA).RiskMetrics is a global leader in risk management,corporate governance, and financialresearch services. Mr. Perler is frequentlyfeatured at industry conferences and trainingseminars, as well as in media outlets such asBarron’s, BusinessWeek, The Wall Street Journal,and CNBC.