The objective of this work is to provide an overview of the work that has been done in an important area of financial markets research. I have tried to make this survey as complete as possible, without getting bogged down in a lot of technical details. Since this area of research has been very active for the past several years, describing all of the work that has been done is not feasible. I have tried to include the most important research in my discussion. Mainly this work will be focusing on- • To study the financial statement fraud of different companies. • To explain unexpected fluctuation in operating income under various conditions and to assess the chances of fraud. • To find out the consequences of securities fraud.