Author(s): Mark Bennett
Accounting pathologies, or errors and manipulations in financial reporting, present significant challenges to the integrity of financial statements, investor trust, and market stability. This article delves into common accounting pathologies, examining their root causes, such as pressures from management, inadequate internal controls, and ethical lapses. Through understanding the motivations and methods behind financial misreporting, we highlight its impact on stakeholders, including investors, regulatory bodies, and the wider economy. The article emphasizes the importance of rigorous internal controls, regulatory compliance, and ethical practices to prevent and detect these pathologies, fostering a healthier financial ecosystem