Financial Statement Fraud Report: Rite-Aid

Fraudulent financial reporting can really have unfavorable results on companies, as well as, public confidence in capital markets. This paper will examine the financial statement fraud and will also investigate the financial statement fraud that happened at Rite Aid in the beginning of the 2000's. The outcome of Rite Aid's fraud, as well as a lot of other key accounting scandals, led to the formation of the Sarbanes-Oxley (SOX) Act of 2002. SOX help the increasing need to reestablish customer confidence in reporting and accounting practices. AAER No. 1579 on June 21, 2002 discloses to the public the SEC's commands to Rite Aid appropriate to their activity that is fraudulent. Rite Aid's recounted financial statements were misleading and false, and its records and books were imprecise. Rite Aid was told that they to reaffirm stated cumulative pre-tax income by a total of $2.5 billion and...
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