Description

This course covers fraudulent activities involving asset and equity mismanagement, as well as deceptive reporting practices. It highlights how companies may misstate asset values, manipulate equity, and misreport financial disclosures to mislead stakeholders. By learning to recognize these schemes, auditors can enhance their ability to detect fraud and ensure greater transparency and trust in financial statements.

Chapter 1: Asset and Equity Mismanagement – Overview

This chapter discusses fraud schemes that involve overstating assets and manipulating equity. This includes manipulating depreciation and amortization schedules, related party transaction fraud, creating shell companies, and manipulating stock option accounting.

Chapter 2: Disclosure and Reporting Fraud – Overview

This chapter addresses fraudulent practices in financial reporting, focusing on the misrepresentation or omission of critical information in disclosures. Key topics include failure to consolidate related entities, failure to disclose contingent liabilities, misreporting foreign currency transactions, and misleading disclosures, specifically the Management Discussion and Analysis (MD&A) section.