Historical approach to the study of “falsification” and “veiling” procedures in current accounting and financial reporting

Research conducted by Russian and foreign scientists has proven that distortion of financial statements harms not only a wider range of external, but also internal users of financial statements, including employees and management of an economic entity. At the same time, internal users of financial statements suffer both financial and non-financial losses, for example, loss of reputation. In economic theory and accounting practice, falsification and concealment are distinguished as methods of distorting financial statements. Distortion of financial statements as a phenomenon has now taken on a more complex form and has changed in content. It has been determined that the manifestations of distortions in financial statements are largely determined by the features of the process of preparing financial statements, that is, the mechanism of distortion itself, therefore, in order to form the most complete theoretical description of falsification and concealment, it is necessary to analyze the errors identified during inspections of economic entities, to classify them in order to develop methods identifying non-standard business situations, taking into account the historical approach to the study of “falsification” and “veiling” procedures.