In the below video, I analyze a MNC company from the hot specialty chemicals sector.
This video re-emphasizes the importance of “management quality” and has some great pointers to detecting accounting frauds.
If you want to learn how to detect accounting frauds, I have also developed a course on “Forensic Accounting for Investors”
You may check out the course details here.
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There are frauds in every country. But what is a troubling fact in India is that a lot of those who are entrusted with rooting out fraud like the Govt officials and people who wield political power also routinely commit bribery and other frauds, and rarely get punished for it. So I don’t trust the accounting statements of many companies as far as I can throw them.
Actually that is the exact point.
As investors we have to deal with whatever hand is dealt to us.
I run the Forensic Accounting course in which I discuss how to “bell the cat” and stay away from stocks which may cause significant losses due to corporate mis-governance issues