There is a lot of news these days related to corporate accounting fraud as companies intentionally manipulate their financial statements to give a better picture of their financial health. The objective of financial reporting is to provide financial information about a company to its various stakeholders such as investors and creditors so that these stakeholders can make decisions accordingly. Companies can present a better picture of their financial health by providing misleading information. This may be done by omitting important information from the books or deceptively misappropriating assets such as inventory theft, payroll fraud, check forgery, or embezzlement. Fraudulent financial information will have an effect on the business. This includes, but is not limited to: check forgery, inventory theft, cash or check theft, payroll fraud, or service theft. Another example of misappropriation of assets is payment by a business for goods or services that have not been received or used. Embezzlement is a very common form of embezzlement in which companies manipulate their accounts or create false invoices. An example of asset misappropriation was discovered in 2008 and the victim organization was Fry's Electronics. The vice president of merchandising and operations, Ausaf Umar Siddiqui, had created a fake company that received illegal kickbacks. Siddiqui embezzled $65.6 million to pay off his gambling debts. Misappropriating money from a business can understate cash flow and present a false image to creditors and investors. This can lead them to make decisions based on distorted information. Another example of asset misappropriation is that of a hedge fund manager, Philip A. Falcone, who borrowed $113.2 million from investors at a hedge fund company (Harbinger Capital) and used this money fraudulently to pay personal taxes. Instead of using the investor's money for its intended purpose, which was to build a wireless phone network, he deceived them by using the money without their knowledge to pay his taxes. The company had to file for bankruptcy because it had $23 billion in losses and withdrawals and it could not repay. The company hid huge debts off its balance sheet, leading to an overstatement of profits. Due to understatement of debts, the company was considered bankrupt in 2001. Shareholders lost $74 billion and many jobs were lost due to the bankruptcy. Enron's stock price began to fall in 2000, and in 2001 the company posted a huge loss. Even after all of this, company executives told investors that the stock was simply undervalued and that they wanted their investors to continue investing. Investors lost confidence in the company as the stock price fell, leading the company to declare bankruptcy in December 2001. This shows how lack of transparency in financial statement presentation leads to the destruction of 'a business. All this took place under the watchful eye of an auditor, Arthur Andersen. After this scandal, the Sarbanes-Oxley Act was amended to take into account the role of auditors and how they can help prevent such scandals..