We investigate the properties of net income components (cash from operations and accruals components: growth, matching and discretionary accruals) for firms identified as being at high-risk of misstatement (HR firms) over years -2 to +2 surrounding likely misstatement in year 0.  HR firms have significantly lower cash from operations but significantly higher total accruals from years -2 to +2, with a precipitous mirroring spike for both in year 0.  Cash flow persistence is significantly lower for all years we examine, and accrual component persistence varies: higher persistence for growth and discretionary accruals but lower persistence for matching accruals.  The market appears to struggle to assess the persistence of cash flows and accrual components for HR firms.  Returns to HR firms for years -2 to 0 are significantly higher suggesting both an incentive to manipulate and the market being temporarily mislead by manipulation but are significantly lower for years +1 to +2, reflecting a “settling up.”