Similarly, failure to adhere to ethical and legal accounting principles can negatively affect your business. In particular, companies involved in fraudulent financial reporting suffer the direct impact of such practices in both the short and long term. The impact may not only be in the form of financial loss, but also in the form of reputational damage. In particular, banks that cater to the funding source of companies involved in fraudulent financial reporting will be on the verge of losing their investment. It has been noted that in the overall scenario, fraudulent financial reporting is conducted with the intention of resentment of better positioning of the company in front of investors and other stakeholders. However, in the process this affects the quality and integrity of the company's financial reporting process. Furthermore, since fraudulent financial reporting is contrary to the objectives of any company, it will certainly lead to considerably jeopardizing the accuracy of financial results. Accounting professionals associated with the development of financial reports in any business may also be at risk of losing their license once caught for false financial reporting. It was also observed by the secondary