Gerry Zack, CFE, CPA, CIA
Gerry Zack, CFE, CPA, CIA, is a an ACFE faculty member and was the 2015 chair of the ACFE Board of Regents. His email address is: gzack@bdo.com.
The many recipes for financial statement fraud
I’ve thoroughly enjoyed writing this column for you. I hope it was useful. Fraudsters have more ways than ever to cook the books, and CFEs need to be diligent in monitoring and investigating the financial and nonfinancial reporting of companies. At one time, we thought financial reporting fraud didn’t have a lot of variety. But now this couldn’t be further from the truth.
Written By: Gerry Zack, CFE, CPA, CIA
Dipping into the cookie jar
Companies sometimes employ cookie-jar reserves during periods of strong financial performance as cushions for the inevitable future periods when performance will decline.
Written By: Gerry Zack, CFE, CPA, CIA
When 'fair value' isn't so fair
Fair value is one of the more complicated and controversial areas of accounting. Some assets and liabilities are initially recognized at their fair values, and some of those are subsequently adjusted to account for changes in fair value.
Written By: Gerry Zack, CFE, CPA, CIA
When do non-GAAP metrics become fraudulent publicity?
For years, companies reported their figures under GAAP or IFRS standards. But what happens when a company commingles the GAAP/IFRS-based financial information with other performance metrics in its reports and press releases? These extra measures have no standards, and no one audits them — perfect conditions for fraud.
Written By: Gerry Zack, CFE, CPA, CIA
It's all about customer service
This column’s cases deal with improper accounting for special arrangements made with customers. Companies go to great lengths to meet sales goals, including offering special incentives for customers to buy their products. But the accounting rules provide a framework for how and when such incentives should be reflected in a company’s financial statements.
Written By: Gerry Zack, CFE, CPA, CIA
Inventory inflation schemes come in many flavors
In this edition, I’ll examine some recent cases involving improper accounting for inventory resulting in overstated assets. As with so many of the companies in the cases I profile, the players in two of the three cases were motivated primarily by a desire to meet published or internal goals for gross profit.
Written By: Gerry Zack, CFE, CPA, CIA
Won't get fooled again, but they'll try
With a nod to Pete Townshend and The Who, many auditors have expressed their determination to not get fooled again after being deceived by creative fraudsters. One of the underlying questions in many of the cases I’ve profiled is: “What did the auditors do?”
Written By: Gerry Zack, CFE, CPA, CIA
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