The article considers the extent and consequences of "false accounting" and outlines a theoretical framework which focuses on structural issues commonly found in financial scandals around the world. It summarizes the Gokal/BCCI fraud as a case study offering insights into the motives and modi operandi of accounting frauds. The analysis centers on theoretical and practical lessons to be learned from this case, which is placed in the context of evidence from other frauds in Europe and the United States. The article highlights the importance of strains and pressures to which perpetrators are subject, the rationalizations used by perpetrators, and the organizational structure and anomie. The article suggests several actions to deal with conditions that are conducive to accounting fraud: (1) heighten supervisory attention and take proactive initiatives to detect deceptive practices; (2) monitor closely escalating analyst expectations about future performance to see whether they are putting counter-productive pressures on management; (3) prevent rationalizations from emerging and spreading; and (4) strengthen the accountability and independence of external auditors. Figure, references