I NEED AN EXAMPLE FOR THIS POINT ------- One fraudulent approach that warrants the CFFO to lag behind the operating income is the cookie jar accounting, which is used to smooth out volatility in financial results. When the cookie jar reserves are released, the operating income is increased while no change in the cash flow. This signals fictitious reporting when the CFFO falls behind the operating income. The release of cookie jar reserves falsely presents healthy financial results during the meager periods, giving financial statement users false perception of the companys performance.