1 / 16

Forensic Accounting BA 124

Forensic Accounting BA 124. Professor Bill O’Brien. Today’s Topics. Seriousness of fraud Definition of fraud Types of fraud Criminal versus civil statutes Fraud-related careers. Remember the “P” in CPA. The public trust is essential You have only one reputation. Cost of Fraud.

amy
Download Presentation

Forensic Accounting BA 124

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Forensic AccountingBA 124 Professor Bill O’Brien FORENSIC ACCOUNTING – BA 124 - Spring 2014

  2. Today’s Topics • Seriousness of fraud • Definition of fraud • Types of fraud • Criminal versus civil statutes • Fraud-related careers FORENSIC ACCOUNTING – BA 124 - Spring 2014

  3. Remember the “P” in CPA • The public trust is essential • You have only one reputation FORENSIC ACCOUNTING – BA 124 - Spring 2014

  4. Cost of Fraud • Association of Certified Fraud Examiners (ACFE) • Close to $1.0 trillion annually in U.S.; close to $3.0 trillion worldwide • Over 7% of revenue…straight to the bottom line FORENSIC ACCOUNTING – BA 124 - Spring 2014

  5. How Does Fraud Impact You? • Financially • Reputation of your firm • Opportunity cost FORENSIC ACCOUNTING – BA 124 - Spring 2014

  6. Here’s What Happens... • It is a dollar for dollar impact on net income • Dollars that have a multiplier effect on revenue in order to generate new profits FORENSIC ACCOUNTING – BA 124 - Spring 2014

  7. Defining Fraud • A statement • Which is a lie, • And intentionally or recklessly so, • About a material point, • Which is believed • And acted upon by the victim • To the victim’s damage • Let examine each highlighted term SLIMBAD FORENSIC ACCOUNTING – BA 124 - Spring 2014

  8. What Drives Fraud • Consider the Ponzi Fraud of the early 20th Century • See www.mark-knutson.com • Primary age of fraudsters--36-45 yrs. • Key drivers • Confidence earned • Pressures • Greed FORENSIC ACCOUNTING – BA 124 - Spring 2014

  9. Classifications of Fraud • Fraud versus an organization • Occupational fraud • Fraud on behalf of an organization FORENSIC ACCOUNTING – BA 124 - Spring 2014

  10. Occupational Fraud • Clandestine • Violates fiduciary interest • Direct or indirect financial benefit • Damages the organization FORENSIC ACCOUNTING – BA 124 - Spring 2014

  11. Fraud on Behalf of an Organization • Most common…fraudulent financial reporting FORENSIC ACCOUNTING – BA 124 - Spring 2014

  12. A More Detailed Classification List • Occupational fraud…embezzlement • Management fraud • Investment scams • Vendor fraud • Customer fraud • Know the table on WSA pg. 10 FORENSIC ACCOUNTING – BA 124 - Spring 2014

  13. Examples... • Embezzlement: CVC • Management: World-com • Investment: see scams • Vendor: Halliburton; • Customer: Florida State football player and department store; bank case FORENSIC ACCOUNTING – BA 124 - Spring 2014

  14. Prosecution • Criminal law for public offenses • Bribery laws • Anti Kickback Act of 1986 • Mail Fraud statutes • Bank Fraud statutes • RICO and FCPA • IRS and tax evasion • Civil law for violations of private rights • Note the comparative table on p. 15 FORENSIC ACCOUNTING – BA 124 - Spring 2014

  15. Fraud Related Careers • ACFE and CFE requirements • Government • FBI, Postal Inspectors, IRS • Public accounting • Forensic accountants • Corporation • Internal auditors • Consulting • Lawyers • Expert witnesses FORENSIC ACCOUNTING – BA 124 - Spring 2014

  16. Critical Skills • Analytical • Communication • Technological • Accounting and law • Language • Behavioral • Common sense FORENSIC ACCOUNTING – BA 124 - Spring 2014

More Related