Fraud examination albrecht albrecht albrecht
This presentation is the property of its rightful owner.
Sponsored Links
1 / 21

FRAUD EXAMINATION ALBRECHT, ALBRECHT, & ALBRECHT PowerPoint PPT Presentation


  • 124 Views
  • Uploaded on
  • Presentation posted in: General

FRAUD EXAMINATION ALBRECHT, ALBRECHT, & ALBRECHT. Financial Statement Fraud. CHAPTER 11. Learning Objectives. Understand the role that financial statements play in U.S. businesses. Describe the nature of financial statement fraud. Become familiar with financial statement fraud statistics

Download Presentation

FRAUD EXAMINATION ALBRECHT, ALBRECHT, & ALBRECHT

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.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


Fraud examination albrecht albrecht albrecht

FRAUD EXAMINATIONALBRECHT, ALBRECHT, & ALBRECHT

Financial Statement Fraud

CHAPTER 11


Learning objectives

Learning Objectives

  • Understand the role that financial statements play in U.S. businesses.

  • Describe the nature of financial statement fraud.

  • Become familiar with financial statement fraud statistics

  • See how financial statement frauds occur and are concealed.


Learning objectives1

Learning Objectives

  • Understand the framework for detecting financial statement fraud.

  • Identify financial statement fraud exposures.

  • Explain how information regarding a company’s management and directors, nature of organization, characteristics, relationship with others, and financial results can help assess the likelihood of financial statement fraud.


What are some problems with financial statements

What Are Some Problems with Financial Statements?


Review the fraud triangle

Review the Fraud Triangle.


What are the elements of the perfect fraud storm

What Are the Elements of the Perfect Fraud Storm?


What are the elements of the perfect fraud storm1

What Are the Elements of the Perfect Fraud Storm?


Financial statement fraud statistics

Financial Statement Fraud Statistics.

  • Infrequent

  • 300 over 10 years

  • Costly

  • Last 23.7 months

  • Mean $25 million

  • CEO in 72%, CFO, COO

  • Computer hardware/software

  • 78% of firms on NASDAQ


Financial statement fraud statistics1

Financial Statement Fraud Statistics.

  • Most had no audit committee

  • Most directors were insiders

  • Family relationships between directors

  • 56% audited by Big Eight or Big Six

  • 25% changed auditors during fraud

  • Significant number of class action suits

  • Many resignations-few served jail time


What are the motives for financial statement fraud

What Are the Motives for Financial Statement Fraud?


Discuss detecting financial statement fraud

Discuss Detecting Financial Statement Fraud.


Complete the fraud exposure rectangle

Complete the Fraud Exposure Rectangle.

Fraud Exposure Rectangle

1

2

4

3


Discuss management directors

Discuss Management & Directors.


Comment on explain relationships with others

Comment On & Explain Relationships with Others.


Describe questionable organizations industries

Describe Questionable Organizations & Industries.


List what to ask about organization industry

List What to Ask About Organization & Industry.


What approach is taken to examine financial statements

What Approach is Taken to Examine Financial Statements?


What approach is taken to examine financial statements cont d

What Approach is Taken to Examine Financial Statements? (cont’d)


Define the acronyms

Define the Acronyms.

  • COSO is

  • SEC is

  • GAAP is


Match terms definitions

Match Terms & Definitions.

10-K

Quarterly report publicly traded companies file with SEC

Government Agency responsible for regulating stock trading & financial Statements of Public companies

10-Q

Annual report publicly traded companies file with SEC

AAER

Document released by SEC when a company commits financial statement fraud

SEC


Match terms definitions1

Match Terms & Definitions.

Financial Statement Fraud

It recommended changes in financial statements

Intentionally misstating financial statements

Financial Statements

Reports summarizing cash & profits of an organization

Treadway Commission


  • Login