Financial statement fraud occurs when a company intentionally misrepresents its financial information to deceive stakeholders. This can involve overstating revenues, understating expenses, or manipulating other financial metrics to present a more favorable picture of the company's performance. Such actions can mislead investors, creditors, and regulators, leading to significant financial consequences. The motivations behind financial statement fraud often include the desire to secure loans, attract investors, or meet performance targets. Companies may engage in this unethical practice to maintain stock prices or avoid bankruptcy. Detecting and preventing this fraud is crucial for maintaining trust in financial markets and protecting stakeholders' interests.