Large corporate financial fraud in the early 2000s crippled the financial market in the United States. Regulators have had to find ways to detect and prevent fraudulent reporting. To detect fraud, auditors must use data mining and performance evaluation techniques. For fraud prevention, the auditor must analyze the elements of the fraud triangle: opportunity, integrity and motivations. Fraudulent reporting, also called management fraud, aims to improve business results. To this end, management overstates assets and revenues, and underestimates liabilities and expenses. GAAP has designated auditors responsible for detecting fraud in financial statements. However, we suggest investors and creditors help auditors or government authorities identify financial statements.