Accounting fraud refers to the intentional manipulation of financial statements to present a false picture of a company's financial health. This can involve overstating revenues, understating expenses, or hiding liabilities. Such actions mislead investors, regulators, and other stakeholders, potentially leading to severe legal consequences. Common methods of accounting fraud include falsifying invoices, creating fictitious accounts, and misclassifying expenses. Companies may engage in these practices to inflate stock prices, secure loans, or meet financial targets. Detecting accounting fraud often requires thorough audits and scrutiny of financial records to ensure transparency and accuracy.