How to detect earnings manipulation

How to detect earnings manipulation via Quant Investing  “After all, you only find out who is swimming naked when the tide goes out.” – Warren Buffett There a basically two main reasons why companies swim naked and that may lead to you losing your total investment: Companies that are cooking the books -> financial statements manipulation and fraud Bankruptcy In most cases these risks are often found together, companies that cook their books a lot of the time also go bankrupt. Management’s desire to put a positive spin on financial results has been around as long as corporations and investors…