Together, Reducing Fraud Worldwide

  • On-Site Training Proposed Schedule 

     

    Financial Statement Fraud 

     

     
    DAY ONE 
    DAY TWO 
    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 Asset Valuation 

    Improper valuation of accounts receivable, inventory, business combinations and fixed assets, just to name a few, are some of the methods used to produce fraudulent financial statements.

     

    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 auditing standards related to financial reporting fraud 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, Part 1
    Premature revenue recognition; recording financing arrangements as sales; manipulating long-term contracts; channel stuffing; and improperly recognizing sales with conditions and consignment sales are several of the many ways discussed during this session that revenue can be improperly recognized.

    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.
    12:30 p.m. - 1:30 p.m.  Group Lunch  Lunch on Your Own 
    1:30 p.m. - 2:50 p.m.  Improper Revenue Recognition, Part 2
    Improperly classifying certain sales transactions can take a wide variety of forms, recording including outright fictitious sales, improper recording of gain contingencies, manipulating sales to related parties, and undertaking bill-and-hold schemes. This session addresses several improper sales treatments, as well as indirect methods of revenue manipulation, and how to identify and investigate these schemes.
    Emerging Issues in Financial Statement Fraud
    As accounting standards change and the financial reporting landscape evolves, increased opportunities for financial statement fraud emerge. This session explores the fraud implications of several emerging issues, including fair value accounting, new revenue recognition standards and recent changes in lease accounting.
    2:50 p.m. - 3:05 p.m.  Break  Break 
    3:05 p.m. - 4:25 p.m.  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.
    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.

     

    Training Details