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DAY ONE
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DAY TWO
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| 7:30 a.m. - 8:00 a.m. |
Registration - Breakfast Pastries |
Breakfast Pastries |
| 8:00 a.m. - 9:20 a.m. |
Introduction to Financial Statement Fraud
This opening session provides an introduction to financial statement fraud; examples of who commits financial statement fraud and why; definitions of fraud, proving intent and materiality; guidance for prosecution; and management and auditors’ liability for financial statement fraud. |
Improper Deferral of Costs and Expenses
The improper deferral of costs and expenses often does not leave an audit trail. A simple change in accounting methods can shift current expenses to an earlier period. The most frequently used methods for improper deferral are discussed within this session. |
| 9:20 a.m. - 9:35 a.m. |
Break |
Break |
| 9:35 a.m. - 10:55 a.m. |
Management’s and Auditor’s Responsibilities
Management is ultimately responsible for the financial statements, however this session provides recommendations which, when used with other measures, will help curb fraudulent financial reporting. Reviews of current developments including SAS 99, Sarbanes-Oxley Act are highlighted. |
Improper Recording of Liabilities
Failure to record liabilities, changes in accounting assumptions, off balance sheet entities, and manipulation of reserves are some of the popular methods in the hands of the fraudster. This session explains when liabilities should be recorded. |
| 10:55 a.m. - 11:10 a.m. |
Break |
Break |
| 11:10 a.m. - 12:30 p.m. |
Improper Revenue Recognition
Premature revenue recognition; recording financing arrangements as sales; misclassifying gains; less-than-arm’s-length transactions; bill and hold schemes; and improperly recognizing extraordinary gains are several of the many ways discussed during this session that revenue can be improperly recognized. |
Video Presentation
This video presentation provides examples of real world financial statement fraud schemes and establishes the level of professional skepticism required for the accountant or auditor to maintain throughout an engagement. |
| 12:30 p.m. - 1:30 p.m. |
Group Lunch |
Lunch on Your Own |
| 1:30 p.m. - 2:50 p.m. |
Improper Treatment of Sales
Improperly classifying certain sales transactions can take a wide variety of forms, from fictitious sales to booking loan proceeds as income. This session addresses three principal sources of improper sales treatments. |
Inadequate Disclosures
Management has an obligation to disclose all significant information in the financial statements. Inadequate disclosures of related party transactions are among the most difficult financial statement frauds to detect. This session also addresses sham transactions and other issues affecting Management’s Discussion and Analysis of the Financial Statements. |
| 2:50 p.m. - 3:05 p.m. |
Break |
Break |
| 3:05 p.m. - 4:25 p.m. |
Improper Asset Valuation
Improper valuation of accounts receivable, inventory, business combinations, and fixed assets, just to name a few, are some of the many methods used to produce fraudulent financial statements. |
Detecting Financial Statement Fraud
Combining financial statement analyses techniques, risk assessment questionnaires and common sense, this session provides methods of quickly and effectively detecting financial statement fraud and focusing your examination. |