FR-106 AUDITING FOR ACCOUNTING FRAUD

FR-106 AUDITING FOR ACCOUNTING FRAUD

DESCRIPTION

This course will provide an overview of accounting fraud, including how it is committed and the motivation behind it. Participants will gain the fraud knowledge and forensic accounting techniques necessary to identify accounting and financial statement fraud within their organizations. Real-life comprehensive fraud case studies and the forensic accounting and fraud examination techniques used to identify and quantify the frauds will be used throughout the course to further the learning process.  Participants will work through fraud case study examples and exercises.

 

This interactive course will be taught through a combination of lecture, case studies, group exercises, and class participation.

LEARNING OBJECTIVES:

  • Recognize the most common accounting fraud schemes
  • Identify the red flags of accounting fraud
  • Detect fraud using forensic accounting and audit procedures
  • Understand the emerging issues and the fraud implications in financial reporting
  • Understand fraud fundamentals used to identify fraud within your organization
  • Know and understand the fraud tree schemes and identifying how they manifest as fraud scenarios in your organization
  • Understand the characteristics of fraudsters to identify potential high-risk departments or individuals

 

COURSE OUTLINE

Fraud Basics

  • Definitions of fraud
  • The fraud triangle
  • ACFE 2018 Report to the Nations
  • Fraudsters—characteristics and behaviors

The Fraud Tree Schemes and Scenarios: Analysis and auditing techniques | Red flags

  • Corruption
  • Financial Statement fraud – Improper revenue recognition
  • Financial Statement fraud – Concealed liabilities and expenses
  • Asset misappropriation
  • Fraudulent disbursements

Techniques for Financial Statement Analysis

  • Comparative techniques
  • Ratios
  • Financial relationships
  • Cash flow

Understanding Trends and Patterns in Data

  • How to spot them
  • Understanding what the data is telling you
  • Red flags vs. changes in the business

Analytics and Forensic Accounting Techniques

  • Regression analysis
  • Ratios
  • Benford’s law
  • Beneish M-Score
  • Reasonableness testing
  • Damerau-Levenshtein—fuzzy logic

Example Data Analytics Techniques

  • Accounts payable
  • Payroll
  • Inventory and fixed assets
  • Financial statements

Investigations—The Basics of Conducting a Fraud Investigation

  • Planning and conducting an investigation
  • Obtaining and analyzing information
  • Forensics
  • Useful resources for investigations
Duration

CPE

Delivery

Field

Level

Who Should Attend

Prerequisites

 

Advanced Preparation

2 Days

16

Group-Live

Auditing

Intermediate

Internal audit and accounting staff and management

A working knowledge of accounting, fraud basics, and financial statements

None