This course provides an overview of the various forms of financial fraudand manipulation that can distort financial statements and mislead stakeholders. It addresses tactics used by some companies to artificially inflate revenue, understateliabilities, mismanage assets, and misreport disclosures. By understanding these fraudulentpractices, auditors can better identify these types of frauds and ensure more accurate and transparent financial reporting for stakeholders.
Learning Objectives
Upon successful completion of this course, participants will be able to:
Identify common methods of manipulating revenue and earnings in financial statements
Recognize indicators of inflating earnings with non-recurring items and overstating deferred revenue
Distinguish between legitimate and fraudulent journal entries
Recognize indicators of backdating transactions and how they can impact financial reporting
Major Topics
Revenue and Earnings Manipulation
Non-Recurring Items
Detecting Improper Use of Non-Recurring Items
Deferred Revenue
Detecting Intentional Misstatements in Deferred Revenue
Backdating Transactions
Detecting Backdating
Fraudulent Journal Entries
Detecting Fraudulent Journal Entries
Expense and Liability Fraud
Misclassifying Financial Statement Items
Improper Use of Reserves
Misrepresenting Lease Classifications
Structuring Transactions to Avoid Regulatory or Accounting Thresholds
Manipulating Depreciation or Amortization Schedules
Related Party Transaction Fraud
Creating Shell Companies for Fraudulent Transactions
Manipulating Stock Option Accounting
Failure to Consolidate Related Entities
Failure to Disclose Contingent Liabilities
Misreporting Foreign Currency Gains or Losses
Best Practices for Ethical Financial Reporting
