Common types of fraudulent accounting / Akma Hidayu Abdul Wahid and Rafizan Abdul Razak

Accounting fraud occurs when an individual knowingly alters financial documents to provide a false impression of a company's financial health. Several distinct forms of accounting fraud are more common than others. Among these are the following: overstatement of income, misrepresentation of assets, understatement of expenses. There are several methods by which a firm might intentionally inflate its reported income. A firm, for example, will acknowledge the sales prior to their realization or before receiving money. Simply put, the timing of acknowledging income is incorrect. For example, changing the date of an event to occur after the end of the year allows for extra sales transactions for the present year. Another method involves generating counterfeit invoices. In 2022, Securities Commission Malaysia reported that Serba Dinamik was prosecuted in the Kuala Lumpur Sessions Court for providing a false statement about Serba Dinamik's revenue to Bursa Malaysia Securities Berhad. The charge that was preferred under section 369(a)(B) of the Capital Markets and Services Act 2007 ("CMSA") was related to Serba Dinamik's Quarterly Report on the Consolidated Results for the Quarter and Year Ended 31 December 2020 (Securities Commission Malaysia, 2022).