Similarly, non-compliance with ethical and legal principles of accounting can negatively influence the business. In particular, companies involved in fraudulent financial reporting suffer the direct consequences of such practices, both in the short and long term. The impact may not only take the form of financial loss, but also reputational damage. Notably, banks that encounter the funding source of companies involved in fraudulent financial reporting will be on the verge of losing their investment. It was noted that in the general scenario, fraudulent financial reporting is carried out with the aim of harming better positioning of the company among investors and other stakeholders. However, in doing so, it affects the quality as well as the integrity of the company's financial reporting process. Moreover, since fraudulent financial reporting goes against the objectives of any business, it will certainly lead to significantly compromising the accuracy of financial results. Accounting professionals associated with financial reporting in any business may also risk losing their license once arrested for fraudulent financial reporting. It has also been observed at the secondary level