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Deutsche Bank – Here Is How To Investigate Possible Accounting Fraud Before Allegations Arise

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Michelle deBoer-Jones
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When allegations about accounting problems at Patisserie Valerie surfaced, they shocked the investing world, frustrating investors who felt they were "merely unlucky" in owning shares in a company with this type of problem.

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However, not everyone thinks accounting fraud and bankruptcy risks appear without any warning. One analyst has compiled a report highlighting some warning signs of potential accounting problems and tests investors could carry out on companies they're thinking about investing in.

Patisserie Valerie faces accounting probe

U.K.-based café chain Patisserie Valerie has been under investigation since earlier this month. Investigators are looking into why the company issued millions of pounds worth of options to its executives without disclosures in filings. Trading...

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Michelle deBoer-Jones is editor-in-chief of Hedge Fund Alpha. She also writes comparative analyses of stocks for TipRanks and runs Providence Writing Services. Previously, she was a television news producer for eight years, producing the morning news programs for NBC affiliates in Evansville, Indiana and Huntsville, Alabama and spending a short time at the CBS affiliate in Huntsville.