【正文】 of significant transactions. Opposed to fraudulent financial reporting, an undue asset reclaims concern (Popa I., Man Al. Rus A., 2021): revenue dilapidation (revenue ing from unwarranted claims / diverting ine), theft of physical assets or intellectual property, payments to fictitious suppliers, without the entry of goods / services, use of assets in personal interest (including also personal loan guarantees), false records to cover the deficit. These abuses are often minor and are usually mitted by employees, although sometimes, the managers themselves are involved in such activities. Misappropriation of assets may also include expenses incurred for illicit purposes, in the form of bribery, whether for mercial or official purposes. Although improperly acquiring assets often is not significant for financial statements, .it may continue to result in substantial losses for the anization. (Soltani B., 2021) 2. FACTORS THAT ENHANCED FRAUDULENT FINANCIAL REPORTING According to studies conducted by the National Commission on Reporting Financial Fraudster in America (or Treadway Commission) fraudulent financial reporting usually occurs as a result of certain environmental forces and opportunities, institutional or individual. These forces and opportunities add pressures and incentives that encourage individuals and panies to engage in fraudulent financial reporting. When the right mix of forces and opportunities is reached, it can produce fraudulent financial reporting (Report of the National Commission on Fraudulent Financial Reporting, 1987). Ever since 1950, Professor Donald R. Cressey, has studied the factors that lead to mitting fraudulent acts. According to his studies, he concluded that when fraud does occur, there are three factors that act together: intent (premeditation), opportunity and pressure, known as the .fraud triangle” (see Figure 1). Although the factors above are forming the fraud triangle, it’s sufficient that one to take place at a time, for fraud to occur. The sequence steps in order to exercise the act of fraud are recounted below (Soltani B., 2021) Incentives or pressures are the first factors that influence individuals to mit fraud and it refers to excessive pressure to achieve financial targets, to induce optimistic and unrealistic messages in annual reports. In addition, a firm may be threatened and pressured also by intense petition, by market saturation or sudden changes, acquisitions (mergers), the financing need or cash flow problems. Even otherwise honest individuals can mit fraud in an environment that imposes such threats. Source: Dent P., Beware of fraudulent financial reporting, 2021, available Opportunity refers to those factors that enable fraud to be more easily mitted and detection less probable (Hooper J. M., Forneli C. M, 2021).Therefore, ineffective controls or absence of control favors fraud intentions. These factors can be related directly to inadequate monitoring by management or the ineffectiveness of the board of directors or of the audit mittee to oversee the reporting and the internal control. Attitude or premeditation is the trigger factor of the fraud act and refers to the fact that the perpetrator must have a mindset that would justify or premeditate the act of fraud. Detection of risk factors that determine board members, management, employees to be predisposed to such intent may be quite difficult. So when a pany monitors people and processes to discourage and detect fraud, it must follow the three aspects, because fraud involves incentives or pressure to mit a fraudulent act, a perceived opportunity to do so, and some reasoning.(Soltani B., 2021) 3. WHO AND HOW COMMITS FRAUDULENT FINANCIAL STATEMENTS According to the Report of the USA National Commission on Fraudster Financial Reporting in the majority of the studied cases, the pany’s management, such as chief executive, president and chief financial officer, were the fraudulent perpetrators. In some cases, it was found that there were made intentional false disclosures from the accountant throughout falsified documents and records Furthermore, the mittee studies have shown that while the authors of fraudulent financial r