Book description
Valuable guidance for staying one step ahead of financial statement fraud
Financial statement fraud is one of the most costly types of fraud and can have a direct financial impact on businesses and individuals, as well as harm investor confidence in the markets. While publications exist on financial statement fraud and roles and responsibilities within companies, there is a need for a practical guide on the different schemes that are used and detection guidance for these schemes. Financial Statement Fraud: Strategies for Detection and Investigation fills that need.
Describes every major and emerging type of financial statement fraud, using real-life cases to illustrate the schemes
Explains the underlying accounting principles, citing both U.S. GAAP and IFRS that are violated when fraud is perpetrated
Provides numerous ratios, red flags, and other techniques useful in detecting financial statement fraud schemes
Accompanying website provides full-text copies of documents filed in connection with the cases that are cited as examples in the book, allowing the reader to explore details of each case further
Straightforward and insightful, Financial Statement Fraud provides comprehensive coverage on the different ways financial statement fraud is perpetrated, including those that capitalize on the most recent accounting standards developments, such as fair value issues.
Table of contents
- Cover
- Series
- Title Page
- Copyright
- Dedication
- Foreword
- Preface
- Acknowledgments
-
Part 1: Revenue-Based Schemes
- Chapter 1: Introduction to Revenue-Based Financial Reporting Fraud Schemes
-
Chapter 2: Timing Schemes
- ALTERATION OF RECORDS
- SHIPPING SCHEMES
- PERCENTAGE OF COMPLETION SCHEMES
- IMPROPER ESTIMATES OF REVENUE RECOGNITION PERIOD
- MULTIPLE-ELEMENT REVENUE RECOGNITION SCHEMES
- CUSTOMER LOYALTY PROGRAMS
- CHANNEL STUFFING
- BILL AND HOLD SCHEMES
- SALES WITH RIGHT OF RETURN
- IMPROPER PUSHING OF CURRENT REVENUE TO FUTURE PERIODS
- USE OF RESERVES AS A RAINY DAY FUND
- Chapter 3: Fictitious and Inflated Revenue
- Chapter 4: Misclassification Schemes
- Chapter 5: Gross-Up Schemes
-
Part 2: Asset-Based Schemes
- Chapter 6: Improper Capitalization of Costs
-
Chapter 7: Asset Valuation Schemes
- FICTITIOUS ASSETS
- INVENTORY VALUATION SCHEMES
- INFLATING THE BASIS OF PROPERTY AND EQUIPMENT
- INFLATING THE BASIS OF ASSETS ACQUIRED IN NONCASH TRANSACTIONS
- ASSETS ACQUIRED FROM RELATED PARTIES
- UNDERSTATING DEPRECIATION AND AMORTIZATION EXPENSE
- INVESTMENT PROPERTY
- IMPROPER VALUATION OF INVESTMENTS-FINANCIAL ASSETS
- LOANS
- EQUITY METHOD INVESTMENTS
- PROPORTIONATE CONSOLIDATION
- IMPROPER CLASSIFICATION OR AMORTIZATION OF INTANGIBLE ASSETS
- IMPAIRMENT LOSSES-NONFINANCIAL ASSETS
- INVESTMENTS IN INSURANCE CONTRACTS
- Chapter 8: Fair Value Accounting
- Part 3: Expense and Liability Schemes
- Part 4: Other Financial Reporting Schemes
-
Part 5: Detection and Investigation
- Chapter 15: Detecting Financial Statement Fraud
- Chapter 16: Financial Statement Analysis
- Chapter 17: Ratio Analysis
- Chapter 18: Other Detection Procedures
- Chapter 19: Fraud or Honest Mistake?
-
Chapter 20: Assessing (or Minimizing) Auditor Liability
- LITIGATION AGAINST AUDITORS
- CONCEALMENT FROM THE AUDITORS
- AUDITING STANDARDS
- CONSIDERATION OF THE RISKS OF MATERIAL MISSTATEMENT
- IMPROPER OR INADEQUATE USE OF ANALYTICAL PROCEDURES
- AUDITING ACCOUNTING ESTIMATES AND FAIR VALUES
- REVENUE RECOGNITION RISKS
- INSUFFICIENT CONSIDERATION OF RELATED PARTY TRANSACTIONS
- AUDITING DISCLOSURES IN THE FINANCIAL STATEMENTS
- OVERRELIANCE ON THE MANAGEMENT REPRESENTATION LETTER
- Appendix: Financial Statement Fraud Indicators
- Bibliography
- About the Author
- About the Website
- Index
- Index to Cases
Product information
- Title: Financial Statement Fraud: Strategies for Detection and Investigation
- Author(s):
- Release date: November 2012
- Publisher(s): Wiley
- ISBN: 9781118301555
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