Definition
Improper Disclosures refer to incomplete, misleading, or intentionally distorted disclosures in financial statements or accompanying notes.
Context
Improper Disclosures are often associated with financial statement fraud and other forms of fraud. They typically involve omissions or misrepresentations of key risks, assumptions, or uncertainties and are linked to weak corporate governance and internal controls.
Meaning
Improper Disclosures reduce transparency and may lead to misinformed decisions by investors, regulators, and other stakeholders.
Example
Omission of material risks or uncertainties in financial statement disclosures.
Sources
Suggested citation
wirtschaftsforensik.ch Editorial Team: "Improper Disclosures", in: Glossary, wirtschaftsforensik.ch, https://wirtschaftsforensik.ch/glossar/improper-disclosures/, accessed April 18, 2026.