Financial statement fraud, be it an understatement, overstatement or others propagated under fraudulent reporting, has devastating impacts on companies ranging from colossal economic losses, wrong operational decisions, reputational damage, Fines and even bankruptcy. The purpose of this dissertation aims to investigate the impact and causes of financial statement fraud and the measures to prevent them. Specifically, Using Wirecard and Waste Management Inc. as case studies, the study set out to identify potential causes and impacts of financial statement fraud and to propose methods that can be utilised to prevent future instances of financial statement fraud. This study used two categories of companies; companies with a record of financial statement fraud (Wirecard and Waste management Inc) and one company without (Bank of America). The correlation of certain variables of these companies like liquidity, ROA and Debts was done extensively to better achieved the objectives of this research. Secondary data gotten from financial statements of Wirecard and Waste management Inc and Bank of America, for a period of 5 years was used for the analysis. The data was analysed quantitatively using a logistic regression with the help of SPSS 20.0 software. Results from the study revealed that, companies with low liquidity have a higher probability of committing fraud than companies with higher liquidity. Also results showed that companies with a low ROA have a higher probability to commit financial statement fraud since they want their financial records to look good in the eyes of investors. More so, companies with higher debt have higher probability to commit financial statement fraud that companies with lower debt. Debt is an important factor considered by investors before any investment is made and as such companies with higher debts, the probability to manipulate their books to look good in the eyes of investors is higher.