Advanced Forensic Financial Analysis, Part One
To stay ahead of financial statement fraud, fraud examiners must step up to a new level of analytical comprehension and intellect to uncover the latest devious techniques.

Advanced Forensic Financial Analysis, Part Two
Fraud examiners must hone their financial statement fraud detection methods to overtake the sophisticated crimes of corporate America.

An interview with Marta Andreasen, suspended chief accounting officer of the European Commission - Telling the Truth & Living in Limbo
Marta Andreasen, the European Commission’s chief accounting officer, awaits her professional fate after declaring the EC’s budget was “mas-sively open to fraud” and endures suspension because of her honesty.

…And Nothing But the Truth: Uncovering Fraudulent Disclosures
Since fraudulent disclosures fall into a number of recognizable patterns, knowing how these schemes work can greatly help the financial statement auditor detect them.

The Barings Bank Case: Image in the Mirror
The numerous investigations into the current sensational corporate failures will expose many of the same operations control weaknesses that led to the collapse of the Barings Bank of London.

Case in Point: Financial statement fraud. An acquisition in wonderland?
Just like Alice in her Wonderland, the acquiring company didn't anticipate the tricks of the Mad Hatter and March Hare. But eventually the purchasers discovered the nightmare of an $18-million fraud in the company they had bought.

Collaring Crime at Work
This article details the findings of one of the most comprehensive studies into occupational fraud and abuse ever undertaken in the United States, the 1996 Report to the Nation.

Effective solutions for combating employee theft: Creative employee theft schemes & how to detect them
Just when you think that you've seen every way an employee can steal from you, a new one comes along. Employees are always coming up with creative ways of making you part with your money. In this session you'll learn some of these ways and especially how you can detect them, the first step in stopping them.

Detecting Fraud in the Data, Part One
Automatic intervention detection – an advanced computer-based tool – can be used to distinguish companies with fraudulent data from those with no indication of fraudulent reports.

Detecting Fraud in the Data Using AID, Part Two
In Part One, we examined the basics of automatic intervention detection – an advanced computer-based tool. Here we describe the methodology of a research study conducted to explore the effectiveness of AID.

Draw Me a Diagram: Finding Fraud with the ‘ Common-size Diagram’
Use this simple tool to discover anomalies on both sides of the balance sheet.

Earnings Management: When does Juggling the Numbers Become Fraud?
Earnings management becomes fraud when companies intentionally provide materially misstated information.

Earnings Management Revisited: Further Suggestions in the Wake of Corporate Meltdowns
Here we provide an update on earnings management, including the implications of the U.S. Sarbanes-Oxley Act of 2002, and offer suggestions for improving performance reporting in all countries.

Ethics or Employment? How One Accountant Chose Morals over Money
My surprise first encounter with fraud began with a search to find a better job. It ended with losing my new position, but keeping my integrity and CPA license intact.

Fear Not The Software: Fourth Quarter Revenue Trending: Customer dimension for financial statement fraud testing
As the 2005 year-end approaches, fraud examiners need to remember the impact of revenue mistatements. While financial statement fraud only represents 7.9 percent of the number of fraud cases (per the ACFE's 2004 Report to the Nation), in dollar terms the median loss is $1 million per incident. Of these misstatements, fictitious and improperly timed sales are popular favorites as many company health stats are based on their ability to maintain and grow revenue.

FRAUDBASICS: Financial Statement Fraud, Part One
Financial statement fraud usually involves overstating assets, revenues and profits and understating liabilities, expenses and losses.

FRAUDBASICS: Financial Statement Fraud, Part Two
Fictitious revenues and timing differences are two of five classifications of common financial statement schemes.

A Fistful of Dollars
The best fraud prevention efforts will concentrate on increasing an employee's perception of being caught.

Follow Fraud to the Likely Perp
It is important to understand both the methods and motivations at play when otherwise ethical executives participate in fraudulent financial statement schemes.

Fool Me Once, Fool Me Twice
Two collection agencies - which bought delinquent credit card and other bank debt - raised millions based upon misrepresented collection histories and the misapplication of GAAP.

Formulas for detection: Analysis ratios for detecting financial statement fraud
Messod Daniel Beneish, Ph.D., Indiana University accounting professor, has devised analysis ratios for identifying possible financial statement frauds.

From Sutherland to SOX: the Saga continues. A short history of fraud-fighting studies and laws
This bird's-eye view of five corporate crime studies in the last 50 years may help predict the future of fraud-fighting efforts in the post-SOX era.

Get Corporate Crooks on the Straight-and-Narrow
Legislation mandating executive transparency can go a long way toward preventing fraud.

Ghost Goods: How to Spot Phantom Inventory
Inventory overstatements make up the majority of asset valuation frauds and are the focus of this article.

Preventing and detecting financial statement fraud: Identifying fraudulent financial transactions
One of the most difficult tasks that an auditor has is to identify fraudulent transactions. In this session you'll not only learn what the schemes are, but develop a framework for detecting fraud. Of particular emphasis is a type of financial statement fraud that is not often discussed - inadequate disclosures. You'll get tips for finding the frauds but also how to prevent the fraud.

Protecting the public interest: Fraud in the government. Identifying and investigating financial reporting fraud of non-profit entities
Non-profit organizations may have different financial objectives, but when it comes to fraud, they are not immune. In this session, you'll learn the many methods of fraudulent financial reporting and the motives behind each. Also discussed will be how to investigate non-profit organizations and how to detect fraud.

Effective solutions for combating employee theft. Ignoring indicators equals fraud: a case study
Financial statement audit failures contribute to the untimely discovery and prevention of fraud. How and why does this happen? The appropriate use of Generally Accepted Auditing Standards can identify fraud risk resulting in deterrence and discovery. In this session, GAAS will be discussed and common deficiencies in work will be highlighted together with the disastrous fraud schemes that were discovered too late.

Irrational Ratios
By standing far enough back from the numbers to get a good picture of the client's business, auditors frequently can detect signs of financial statement frauds.

CASE IN POINT: Italy’s Parmalat Milking - Investors Through Financial Statement Fraud
Parmalat – a milk-and-cookies conglomerate – seemed at first glance to be above suspicion. But the firm began to implode when the Italian regulatory commission began its investigation, a Parmalat bank account supposedly holding 3.9 billion Euros was found to be fictitious, and Parmalat fired its two chief auditing companies. This one will last for years.

Let Them Know Someone’s Watching
Those who perceive they will be caught engaging in fraud are less likely to commit it.

Money Laundering: Ring Around the White Collar
In money laundering the fraudster disguises the existence, nature, source, ownership, location and disposition of property derived from criminal activity.

New Approaches for Fraud Deterrence
This article should provoke thought and debate among CPAs on how we might consider different approaches in the way audits are conducted in order to give the public what it really wants: business enterprises with integrity.

Nonprofit Fraud: When the Bottom Line is Not the Bottom Line
Because nonprofit financial reporting fraud often looks quite different than it does in the for-profit world, so should the methods for finding it.

Developing your fraud examination skills: Online investigative resources & techniques
Financial statement audit failures contribute to the untimely discovery and prevention of fraud. How and why does this happen? The appropriate use of Generally Accepted Auditing Standards can identify fraud risk resulting in deterrence and discovery. In this session, GAAS will be discussed and common deficiencies in work will be highlighted together with the disastrous fraud schemes that were discovered too late.

Practical solutions to current fraud issues: Producing electronic evidence
In recent financial statement scandals, much of the publicity centered around shredded documents and deleted e-mails. While this might not be a common occurrence, nevertheless, if this happened in your organization, what would you do? Learn how you might handle this situation if you are confronted with situation as well as some good tips on protecting information that might make a difference in litigation.

Preventing, Deterring and Detecting Fraud: What Works and What Doesn't


Revenue Inflation and Deflation: Detecting Fictitious Revenues in Financial Statements
Intentional misstatement of revenues became the fashionable fraud in 2002. But the crime existed long before WorldCom and Enron. In 1999 alone, more than half of the Security and Exchange Commission's (SEC) fraud cases involved falsifying revenue.

Sarbanes-Oxley Act
The Sarbanes-Oxley Act, spawned from huge corporate collapses, will not make fraud disappear. But its strong language and stiff penalties could deter some executives tempted to stray.

Preventing and detecting financial statement fraud: Sarbanes-Oxley Update
When Sarbanes-Oxley was passed, it had a profound effect on CPA's everywhere. Now that it has had a chance to settle in, has it had the impact that was intended by its passage? Get an update on what has happened in the last year and what is expected to come in the future years. You'll also learn the potential opportunities available for your practice and the pitfalls for your clients.

SAS 99: Another Implement for the Fraud Examiner’s Toolbox
SAS 99 not only requires auditors to be reasonably sure that financial statements are free of material misstatements, whether caused by error or fraud, but it gives them focused and clarified guidance on meeting their responsibilities to uncover fraud.

Fraud's Finer Points: Skimming revenue, Part Two. Laundering stolen checks
Skimming frauds are perpetrated by employees who remove funds from the organization prior to recording accountability for the transaction in the accounting system. This column continues the discussion on employees stealing checks from the organization.

So That’s Why It’s Called a PYRAMID SCHEME
Fraud comes in many shapes and sizes—and it’s growing faster than ever.

Starting out: Students: This Column is for You!


Timing is of the Essence
When companies get desperate to show earnings or reduce losses, sometimes they resort to fraudulent timing differences to show phony profits.

When Employees Count Too Much: Spotting Overstated Inventory
Because inventory fraud is often more difficult to prevent and detect than other asset thefts, fraud examiners need to understand the mechanics of inventory accounting and the signs of overstated inventory schemes.

Preventing and detecting financial statement fraud: Worldcom bankruptcy: A fraud examiner's perspective
The WorldCom scandal has taught the financial world many things. It's also a classic study of what not to do in the corporate world when it comes to financial records and how to avoid disaster. In this session you'll learn about WorldCom's bankruptcy and how fraud fits in the picture. It wasn't pretty, but there are many lessons that can be learned to help prevent this from happening again.

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