It is well known that there are many reasons for economic entities to distort their financial statements deliberately. It is a general practice, that reporting becomes the subject for management's manipulation. For example, top staff seeks to reduce the tax base by undercharging the profits in accounting (financial) statements. It expects to attract the maximum number of investors as their positive expectations have a beneficial effect on the growth of the market value of shares and the strengthening of the position of the economic entity in the market. Illegal actions misinform the users and mislead them. Distorted reporting also has a negative impact on management decisions, and it jeopardizes the existence of the company. As evidenced in practice the economic analysis is not always able to reveal the fact of fraud immediately. Checking the accounting (financial) statements for distortions is the most important stage in the process of audit. This method is very useful as a tool of reducing the risk of undetected distortions.