This course sets out to explain what accounting fraud is, how it can be detected and therefore how it might be prevented.
• Discuss the structure and foundations of financial reporting • Be aware of creative accounting and how it can be determined • Determine the need for a forensic accounting by means of case study and other analysis • Appreciate the nature or Benford’s Law and its increasingly important role in the prevention and detection of fraud • Discuss the role of the auditor in detecting fraud • Carrying out a variety of statistical tests on financial reports and accounting data
Who Should Attend?
• Managers • Finance and accounting professionals and those for whom the prevention and detection of fraud is a major issue
Day One: Financial Accounting Review
• Structure of financial reports • Regulation of financial reporting • Financial reporting standards • The Analysis of Financial Reports • Detecting bias in accounting numbers • Qualitative analysis: what people say and what they might mean
Day Two: Creative Accounting
• What is creative accounting and why is it a bad thing? • Inappropriate accruals, estimates, and excessive provisions • Identifying premature revenue recognition and fictitious revenue • Aggressive capitalization • Creative income statements: classification and disclosure • Problems with cash flow reporting
Day Three: Forensic Accounting
• The basics of forensic accounting • The need for Sarbanes-Oxley • The going concern concept in greater detail • Cases in which forensic accounting was used • Off-balance sheet finance • Introduction to Benford’s Law
Day Four: The Role of the Auditor and Detecting Fraud
• The Role of the Auditor in the Prevention and Detection of Fraud • Deterring Fraud – The fraud triangle • The COSO “Internal Control – Integrated Framework,” (COSO Model) • 20 ways to detect fraud • Identifying fraud using time series analysis • Fraud risk assessments manage
Day Five: Tools for Detecting Fraud
• Further Statistical Analysis of accounting and other data • Further application of Benford’s Law • Chi-Square and Kolmogorov Smirnoff Tests • Mean Absolute Deviation test • Mantissa Arc Test • Second Order and Summation Tests
NOT INTERESTED IN THIS COURSE?
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