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    Albrecht, Albrecht, & Albrecht: Financial Statement Fraud

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    Triple X
    The document discusses financial statement fraud, including statistics showing it is costly but infrequent. It describes how financial statement fraud occurs and is concealed, and provides a framework for detecting fraud by examining a company's management, relationships, organization, and financial results. The learning objectives cover understanding financial statements and fraud, as well as tools for assessing fraud risk like the fraud triangle and fraud exposure rectangle.

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    Albrecht, Albrecht, & Albrecht: Financial Statement Fraud

    Uploaded by

    Triple X
    62 views21 pages
    The document discusses financial statement fraud, including statistics showing it is costly but infrequent. It describes how financial statement fraud occurs and is concealed, and provides a framework for detecting fraud by examining a company's management, relationships, organization, and financial results. The learning objectives cover understanding financial statements and fraud, as well as tools for assessing fraud risk like the fraud triangle and fraud exposure rectangle.

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    The document discusses financial statement fraud, including statistics showing it is costly but infrequent. It describes how financial statement fraud occurs and is concealed, and provides a framework for detecting fraud by examining a company's management, relationships, organization, and financial results. The learning objectives cover understanding financial statements and fraud, as well as tools for assessing fraud risk like the fraud triangle and fraud exposure rectangle.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    62 views21 pages

    Albrecht, Albrecht, & Albrecht: Financial Statement Fraud

    Uploaded by

    Triple X
    The document discusses financial statement fraud, including statistics showing it is costly but infrequent. It describes how financial statement fraud occurs and is concealed, and provides a framework for detecting fraud by examining a company's management, relationships, organization, and financial results. The learning objectives cover understanding financial statements and fraud, as well as tools for assessing fraud risk like the fraud triangle and fraud exposure rectangle.

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    FRAUD EXAMINATION

    ALBRECHT, ALBRECHT, & ALBRECHT

    Financial Statement
    Fraud

    CHAPTER 11
    Learning Objectives
    1. Understand the role that financial
    statements play in U.S. businesses.
    2. Describe the nature of financial
    statement fraud.
    3. Become familiar with financial
    statement fraud statistics
    4. See how financial statement frauds
    occur and are concealed.
    Learning Objectives
    5. Understand the framework for
    detecting financial statement fraud.
    6. Identify financial statement fraud
    exposures.
    7. 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?
    Review the Fraud Triangle.
    What Are the Elements of
    the Perfect Fraud Storm?
    What Are the Elements of
    the Perfect Fraud Storm?
    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
    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?
    Discuss Detecting Financial
    Statement Fraud.
    Complete the Fraud
    Exposure Rectangle.
    Fraud Exposure Rectangle

    1 2

    3 4
    Discuss Management &
    Directors.
    Comment On & Explain
    Relationships with Others.
    Describe Questionable
    Organizations & Industries.
    List What to Ask About
    Organization & Industry.
    What Approach is Taken to
    Examine Financial Statements?
    What Approach is Taken to Examine
    Financial Statements? (cont’d)
    Define the Acronyms.

    1. COSO is

    2. SEC is

    3. GAAP is
    Match Terms &
    Definitions.
    10-K Quarterly report publicly traded
    companies file with SEC
    Government Agency responsible
    10-Q for regulating stock trading &
    financial Statements of Public
    companies
    Annual report publicly traded
    AAER
    companies file with SEC
    Document released by SEC
    when a company commits
    SEC financial statement fraud
    Match Terms &
    Definitions.
    Financial It recommended
    Statement changes in financial
    Fraud statements

    Intentionally
    Financial misstating financial
    Statements statements

    Reports summarizing
    Treadway cash & profits of an
    Commission organization

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