The main reason of the lack of confidence in financial information is falsification of financial statements. The study demonstrates that the accounting errors and frauds distorts financial results and do not reflect the true operating conditions, at the same time its leads to wrong decisions, inaccurate forecasts and business prospects. Key initiators of the financial information manipulations are directors, shareholders and accountants. In order better understanding the range of errors and fraud is very important to distinguish criteria. The main criteria of the errors and frauds classification are: causes, significance, content and consequences. The article analyzes the distortion of information, goals, causes and consequences of the financial statements, provides manipulation features and effects, analyzes responsibility for manipulations and reveals the types of financial crime cases in Lithuania.
Keywords: Accounting errors, fraud, financial crime, evidence.