Definition
Expense Manipulation refers to the improper recognition, deferral, or capitalization of expenses to influence reported financial results.
Context
Expense manipulation is commonly associated with financial statement fraud, hidden liabilities, and earnings management practices. It is considered a typical red flag in financial reporting and is often enabled by weak internal controls.
Meaning
It is used to manipulate earnings and distorts the true financial performance of an organization.
Example
Expenses are deferred to future periods to artificially increase current profits.
Sources
Suggested citation
wirtschaftsforensik.ch Editorial Team: "Expense Manipulation", in: Glossary, wirtschaftsforensik.ch, https://wirtschaftsforensik.ch/glossar/expense-manipulation/, accessed April 18, 2026.