Moreover, financial statement fraud was a contributing factor to the recent financial crisis and it threatened the efficiency, liquidity and safety of both debt and capital
markets. Furthermore, it has significantly increased uncertainty and volatility in financial markets, shaking investor confidence worldwide. It also reduces the creditability of financial information that investors use in investment decisions. When taking into account the loss of investor confidence, as well as, reputational damage
and potential fines and criminal actions, it is clear why financial misstatement should be every manager’s worst fraud-related nightmare