Financial Shenanigans: How to Detect Accounting Gimmicks and Fraud in Financial Reports by Howard M. Schilit and Jeremy Perler Book Review
Financial Shenanigans provides you with defenses to protect against aggressive and fraudulent accounting. It provides a good education on accounting fraud and reference on how to interpret, red-flag and digest the information from company's shareholder's report.
One of the really nice things about this book is that on top of being educational, I really found all the specific examples, and there were dozens and dozens and dozens of them, to be a really interesting read. We learn best through stories and this book has plenty of them.
No investor should invest without the knowledge and expertise provided in this book.
About the Authors
Howard Schilit, Ph.D., CPA, is the founder and chief executive officer of Schilit Forensics LLC. Dr. Schilit is a pioneer in the field of detecting accounting tricks in corporate financial reports that mislead investors. Howard was the founder and CEO of CFRA, a global forensic accounting research organization. He has been a leading spokesman before the US Congress, the SEC, and global media outlets about the causes and early warning signs of accounting tricks in public filings. Dr. Schilit began his career as an Associate Professor of Accounting at American University and continues to teach and lecture all over the world. Dr. Schilit holds his doctorate in Accounting from the University of Maryland.
Jeremy Perler, CFA, CPA, is the Director of Research at Schilit Forensics and co-author of Financial Shenanigans: How to Detect Accounting Gimmicks & Fraud in Financial Reports (3rd edition, 2010). Previously, Jeremy served as the in-house Forensic Accounting Analyst for CoatueManagement, a long/short equity hedge fund; Director of Research for CFRA; and auditor for PricewaterhouseCoopers. In addition, Mr. Perler serves on the FASB's Financial Accounting Standards Advisory Council (FASAC) as a representative of the Investor Community. Jeremy holds a Master of Accounting and a BBA from the University of Michigan Ross School of Business.