Income statement: Overstatement or non-sustainability of operating income and/or net income.
Balance sheet: Misstatement of balance sheet items
Cash flow statement: Overstatement of cash flow from operations.
Mergers and acquisitions provide opportunities and motivations to manage financial results. For example, companies with declining cash flow from operations (CFO) may acquire companies to increase CFO as the acquisition may appear in CFI if paid with cash or not appear at all if paid for with equity.