Services About Insights Newsletter Contact
An RMAACA Publication

Red Flags
& Footnotes

One fraud case a week. How the number moved, and why it was tempting. For anyone who reads financial statements and wants to read them better.

By Mahesh Ramanujam, FCA, DISA(ICAI)  ·  Weekly, every Monday

Subscribe on LinkedIn
07
Editions Published
Weekly
Cadence
~12 min
Average Read
SEC · SEBI
Primary Sources

What this is

Most weeks, a regulator somewhere charges a company with accounting fraud — and the coverage stops at "the SEC charged X." The interesting part rarely gets told: how the number moved, and why it was tempting.

That's the gap Red Flags & Footnotes is built for. One reported case per edition, read the way a chartered accountant reads it — mechanism and incentive, not headline.

Who it's for

If you work with financial statements — as an investor, founder, CFO, finance team member, or fellow professional — this is written for you. No motivational content. No jargon for jargon's sake.

Investors Founders CFOs & Finance Teams Auditors CA Professionals
All Editions
Latest Edition
07
85,000
The Founding Case

Not history. A warning.

Arthur Andersen was one of the world's most respected audit firms — decades of reputation, blue-chip clients, 85,000 people. Then trust cracked, and it disappeared in months. The mechanism, the memo that ended it, and the conviction that was later overturned — too late to matter.

14 July 2026 9 min read Arthur Andersen · Enron · 2001–2002
Read Edition 07

Previous editions

06
Edition 06 · 07 Jul 2026
IL&FS: The evergreen loans and the clean opinion
A AAA-rated lender owing ₹91,000 crore defaulted almost overnight. The IFIN book, the loans that round-tripped so bad debt never surfaced, and the audit signature that sat on top of it.
05
Edition 05 · 30 Jun 2026
Who audits the auditors?
An interlude. Four editions asked how nobody saw the fraud; this one turns to the people whose job was to catch it — across Enron, Satyam, Wirecard, Carillion and Evergrande, and the tangle over who is even allowed to discipline an auditor.
04
Edition 04 · 23 Jun 2026
The journal entry that disappeared ₹1,035 crore
Rajesh Exports reported consolidated revenue rivalling Reliance while its standalone Indian business earned a fraction of it. SEBI's forensic auditor asked to see the journal — it was never handed over.
03
Edition 03 · 16 Jun 2026
The bonus that built the fraud
ADM, Part II. How a compensation plan that tied bonuses to one segment's growth target made manipulation rational — and the governance failures that let it run unchallenged for four years.
02
Edition 02 · 09 Jun 2026
The invisible hand in your own pocket
How ADM allegedly moved operating profit between divisions through retroactive intersegment rebates — without ever touching the consolidated P&L.
01
Edition 01 · 02 Jun 2026
The quarter that turned positive without anyone selling more
How a single non-GAAP definition change allegedly turned a quarterly loss into a "first-ever profit" — no extra revenue, just a redefinition.

One case. Every Monday.

Subscribe on LinkedIn and get each edition delivered to your inbox. Free, forever.

Subscribe on LinkedIn →