137 Copyright © 2019, IGI Global. Copying or distributing in print or electronic forms without written permission of IGI Global is prohibited. Chapter 8 DOI: 10.4018/978-1-5225-8455-1.ch008 ABSTRACT Using accurate and reliable financial information is the primary condition for successful investments on a stock exchange. Nevertheless, some major corporate scandals broke out at the 21st century horizon and concluded with a major capital market crisis in confidence. Recent events have proved that Romanian capital market is no exception. All these unfortunate scandals had in common some ingredients, among which are a poor corporate governance, a lack of accountability, and misrepresentation of financial information. This chapter relates to the need of integrity in financial reporting process, as the basis for adequate, reliable, and comprehensive information used in decision making by investors in general, in- stitutional investors in particular. The main focus is to review the characteristics of financial information in order to identify some patterns and depict an overview for sensitive areas that may be vulnerable to fraudulent behavior, such as fair value measurements, related party transactions, revenue recognition, provisions, or asset impairment (inventories and receivables). INTRODUCTION Effective capital markets require that accurate and reliable financial information is provided for stakeholders who have invested in the financial perspectives of a listed entity (Kizil & Burhan, 2018). Some resound- ing corporate accounting scandals that occurred at the beginning of 21st century raised awareness upon the negative effects of fraudulent financial reporting and determined organizations to act more proactive Fraud Risk Management for Listed Companies’ Financial Reporting Tatiana Dănescu University of Medicine, Pharmacy, Sciences, and Technology of Targu-Mures, Romania Ionica Oncioiu Titu Maiorescu University, Romania Ioan Ovidiu Spătăcean University of Medicine, Pharmacy, Sciences, and Technology of Targu-Mures, Romania