Financial Statement Fraud: Strategies for Detection and Investigation

Financial Statement Fraud (Zack) 


By Gerard Zack, CFE, CPA, CIA

Foreword by Dr. Joseph T. Wells, CFE, CPA




Research shows that financial statement fraud is the least frequently encountered fraud, but by far the most costly, resulting in a median loss of $1 million per case. Yet, the indirect losses from financial statement fraud – jobs, support, morale and loyalty – are also significant and almost impossible to measure. Learn how to spot the warning signs before the damage is done. This book explores the many different methods of perpetrating financial statement fraud, the accounting principles that are exploited, and the methods to detect and prevent fraud in any organization.


Financial Statement Fraud: 


Describes major and emerging type of financial statement frauds, using real-life cases to illustrate the schemes

Explains the underlying accounting principles, citing both U.S. GAAP and IFRS that are violated when fraud is perpetrated

Provides numerous ratios, red flags and other techniques useful in detecting financial statement fraud schemes

Includes an accompanying website that provides full-text copies of documents filed in connection with the cases that are cited as examples in the book, allowing the reader to explore details of each case further


Product Details:
Copyright 2012
ISBN 978-1-118-30155-5
Hardcover, 288 pages
John Wiley and Sons

Table of Contents:


Chapter 1: Introduction to Revenue-Based Financial Reporting Fraud Schemes

Chapter 2: Timing Schemes

Chapter 3: Fictitious and Inflated Revenue

Chapter 4: Misclassification Schemes

Chapter 5: Gross-Up Schemes

Chapter 6: Improper Capitalization Costs

Chapter 7: Asset Valuation Schemes

Chapter 8: Fair Value Accounting

Chapter 9: Shifting Expenses to Future Periods

Chapter 10: Omissions and Underreporting of Liabilities

Chapter 11: Consolidations and Business Combinations

Chapter 12: Financial Reporting Fraud as a Concealment Tool

Chapter 13: Financial Statement Fraud by Not-for-Profit Organizations

Chapter 14: Disclosure Fraud

Chapter 15: Detecting Financial Statement Fraud

Chapter 16: Financial Statement Analysis

Chapter 17: Ratio Analysis

Chapter 18: Other Detection Procedures

Chapter 19: Fraud or Honest Mistake?

Chapter 20: Assessing (or Minimizing) Auditor Liability