The Most Common Financial Statement and Asset Fraud Schemes: How to Detect and Prevent Them (CL4TTFS)

4.00 CPE Credit Hours

Many costly fraudulent schemes have occurred repeatedly throughout the past several decades. Why do these material fraud schemes continue to succeed? Is this due to failures of properly designed internal controls? Could the internal controls be adequate but not complied with? This course provides descriptions of how the most common types of financial statement and misappropriation of asset fraud schemes are detected. Cost-effective internal controls that can be implemented to prevent these schemes are provided. Classic and contemporary real-world fraud cases are reviewed in detail to reinforce how these schemes are perpetrated, both due to internal control failures and other factors. Red flags that might possibly be indicative of these fraud schemes are addressed.

Designed For
Business owners, managers, supervisors, employees, accountants and auditors

Objective

• Identify the schemes used to misstate revenue, inventory, asset overstatements, estimates, and other accounts.
• Distinguish suspicious journal entries.
• Determine the red flags associated with fraud schemes concerning revenue, inventory, asset overstatements, estimates, and other accounts.
• Apply analytical procedures to detect various types of fraud.
• Compare particular fraud schemes to landmark cases.

Highlights

• Major financial statement frauds including, among others, sales and other types of revenue, estimates, journal entries, and other accounts
• Major misappropriation of asset fraud schemes including skimming, larceny, and additional schemes that occur in inventory, payables, and other accounts
• Review of landmark cases where the fraud scheme(s) occurred: WorldCom, Phar-Mor, McKesson and Robbins, Waste Management, MiniScribe, Stew Leonard, and others

Prerequisites
Experience in accounting and reporting

Advanced Preparation
None

Developer
AICPA

Presenters
Robert Minniti,

Level of Knowledge
Intermediate