Quality problems of the enterprise's financial statement as a result of distortion of indicators

Financial statements are an important tool for assessing the financial condition of an organization, and their distortions can have serious consequences for investors and the market. This article provides an overview of existing research on the problem of distortions and possible manipulation of indicators in the enterprise's financial statement.

The purpose of the work is to disclose the types of misstatements of financial statements, to identify the main problems because of these misstatements and to show the real consequences of presenting falsified information in case of carelessness.

The methodology of the study was the theoretical basis of the conceptual apparatus on the distortion of financial statements and its types, a literary review, data collection as a result of statistical research of the authors. The research methods are described in more detail in the chapter below.

The originality / value of the study shows how deplorable the results of the business sphere can be because of falsification of work. This is a moving lever for improving methods of detecting distortions in financial statements. The article touches on the importance of conducting regular audits, increasing employee qualification requirements, and regulating regulatory laws and regulations for economic entities. However, this is only a small part for creating methods to eradicate falsified information.

Findings. The results of the study are disclosed in the final part, showing the output of the collected data based on a survey of international firms according to the American global portals with a description of the consequences that may arise for business and investors of an economic entity.

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