Financial Statement Fraud Analysis and Forensic Accounting

• Recognize the most common financial statement fraud schemes
• Identify the red flags of financial statement fraud
• Learning how to identify the red flags associated financial statement fraud
• Understand the fraud implications of emerging issues in financial reporting
• Understanding fraud fundamentals used to identify fraud within your organization.
• Learning the techniques most commonly used to detect financial statement fraud

COURSE OUTLINE

Introduction to Financial Statement Fraud

• Definitions of fraud
• Fraudster characteristics
• Fraud basics

Auditor Responsibility for Fraud

• Auditing standards for fraud
• Fraud programs and governance
• Fraud Risk Assessments

Improper Revenue Recognition

• Revenue recognition
• Long-term contracts
• Channel stuffing
• Sales with conditions
• Fictitious sales/revenue
• Contingencies
• Related parties
• Indirect methods of revenue manipulation

Improper Deferral of Costs and Expenses

• Accounting method changes
• No recording
• Concealment of costs

Improper Asset Valuation

• Accounts Receivable
• Inventory
• Fixed assets
• Business combinations

Improper Recording of Liabilities

• Changes in accounting
• Failure to record
• Off-balance sheet entities

Disclosures

• Significant changes and events
• Related-party transactions
• Management discussion and analysis

Financial Statement Fraud Detection Methods

• Ratios
• Comparative techniques
• Cash flow
• Regression analysis
• Benford’s law
• Beneish M-Score
• Damerau-Levenshtein—fuzzy logic

FOR WHOM:

Internal audit staff and management, Financial auditors, Internal control professionals, Accounting staff.

TRAINING METHODOLOGY

The training methodology combines lectures, discussions, group exercises and illustrations. Participants will gain both theoretical and practical knowledge of the topics. The emphasis is on the practical application of the topics and as a result participant will go back to the workplace with both the ability and the confidence to apply the techniques learned to their duties.