Detecting Financial Statement Fraud | Forensic Accounting

Learn Financial Statement Fraud Schemes like Fictitious Revenue, Timing Difference and Analytical techniques.

Financial Statement Frauds constitute one of the highest median loss in occupational fraud landscape.

As per Reports To The Nation Survey, 2022, published by The Association of Certified Fraud Examiners (ACFE), Financial Statement Fraud Schemes constitute 9% of the total fraud and a median loss of $593000. 

The top management (CXOs) are primarily responsible for such frauds.

Not having ethical tone at the top and managements power to override existing controls contribute to such frauds.

You will learn the following in this course:

• What is financial statement fraud?

• The Fraud Tree

• The Fraud Triangle by Dr. Donald Cressey which includes:

  • Pressure

  • Opportunity

  • Rationalization

• Fictitious Revenue

  • Red Flags to identify Fictitious Revenue

• Timing Differences

  • Red Flags to identify Timing Differences

• Improper Asset Valuation

  • Red Flags to identify Improper Asset Valuation

• Concealed Liabilities & Expenses

  • Red Flags to identify Concealed Liabilities & Expenses

• Improper Disclosures

  • Red Flags to identify Improper Disclosures

• How to analyse Financial Statements

  • Vertical Analysis

  • Horizontal Analysis

  • Ratio Analysis

  • Tax Return Analysis

• Prevention of Financial Statement Frauds

Simple techniques and examples, illustrations have been used in an immersive way to enhance learner experience. Concepts are explained in a lucid manner enabling beginners to CXOs to understand the frauds perpetrated in financial statements.