1 CPE This course is based on two recent financial statement fraud cases; Dewey & LeBouef and ContinuityX. Dewey & LeBouef was a high-profile law firm that, at its peak, had over 3,000 employees and over 1,400 lawyers. It is alleged that personnel at Dewey & LeBouef made inappropriate financial adjustments starting in 2008 to meet its bank lending covenants and planned to conceal these adjustments from its “clueless auditor”. Dewey & LeBouef declared bankruptcy in 2012.
ContinuityX was an internet services reseller that, according to an SEC complaint, fabricated 99% of its revenue. It was audited by a firm that was fined and disciplined by the SEC and the partner responsible for the audit was also fined and permanently suspended from practicing before the SEC. ContinuityX declared bankruptcy in 2013.
Both cases involve financial statement fraud, auditor deception and some lessons to be learned.
Learning Objectives
- Recognize the primary elements of financial statement fraud in the Dewy & LeBouef and ContinuityX cases
- Associate the primary elements of financial statement fraud in the cases in this course with audit procedures that may have detected the fraud
Last updated/reviewed: August 17, 2023
25 Reviews (93 ratings)
Reviews
Anonymous
(Accounting Manager)
An interesting read about two financial statement fraud cases Some exhibits may have helped visualize the situation better along with some more details on how exactly audit procedures failed. For the first case, the law firm thought their auditors were incompetent but there was little mention of how the auditors could have done better. For the second case, an extra sentence or three on how exactly revenue recognition criteria had not been met (e.g. because the fictitious contracts had no intention to repay so commission clawback was likely, revenue was not truly earned) would have tied the conclusion up better.
Craig Scanlon
(Owner at BST)
Much prefer video presentations. Case facts are much more obvious than typical fraud cases. CPA should never practice again demonstrating no knowledge and/or interest in identifying basis of fair financial presentation or uncovering significant issues with client financials.
Anonymous
(Associate Director, CFCC Assurance)
Course details the weaknesses and oversight occurring on two financial statement fraud cases. Good read for people to see how auditors can be deceived and why thorough internal controls and audit plans are important.
Anonymous
(Sr Analyst)
This is a good course on audit fraud and specific failures made by the clients and auditors. Some details for the second case seem a bit muddy and hard to follow.
Sherman Bamford
(Accountant at Carilion Clinic)
There was no audio with this course but otherwise presented two excellent case studies (two very extreme examples of corporate fraud, greed, and egos at work),
Ashlee Krupa
(Financial Analyst at RJ Corman)
Very interesting.
I do wish that they had discussed how these frauds were discovered, but otherwise it was very informative and interesting.
Anonymous
(internal audit consultant)
Very interesting cases. As an auditor, I could hardly believe that the auditors involved did not catch these frauds.
Anonymous
()
Dramatic fraud cases - hard to believe these. But shows how multiple parties could be duped by deceptive players.
Anonymous
(Consultant - Process Specialist)
The cases discussed on the document were very interesting. Very intriguing on how these cases were uncovered.
Anonymous
(Grey Market Program Manager)
Good course however it would have been better if this was a trainer presented course rather than self study.
Anonymous
(Internal Auditor)
very interesting examples of their life. I could not even imagine that public companies are capable of this
Anonymous
(Accountant II)
What you would expect for a foundation level course. The questions proved to be a nice refresher.
Kimberly Martin
(SR HR Manager at Dentsply Sirona)
Liked the real world examples. Very interesting case study to see how fraud evolves in real life
Anonymous
(Senior Accountant)
Cases were laid out nicely to follow and appropriate review of corrective action was discussed.
Thomas Foster
(member at Foster & Company, LLC)
like text based but i dont understand why i am required to make a review of a minimum length
Anonymous
()
Interesting course. Discussion could have expanded easily to 2 hours. Prefer video!
Stephen Sylvester
(Freelance Writer at Private)
Decent text-based course. Appropriate time allocated and reasonably interesting.
Anonymous
()
interesting cases studies, a preferred way to learn is real-world application
Anonymous
(Finance Director)
Interesting read and thorough in its analysis as to how fraud occurred.
Anonymous
(Director Net Revenue)
New case study i hadn't heard about - very interesting. Well laid out
Kenneth Hopkins
(Senior Financial Analyst at The University of Texas Health Science C..)
A good read. Very informative and the frauds were very imaginative.
Anonymous
(Analyst)
Interesting cases about two relatively obvious fraud examples.
Anonymous
()
This was an interesting enough course, it did the job.
Katherine Oster
(Senior Revenue Manager at Community Brands)
I enjoyed this course, and I found it very informative.
Elizabeth Merritt
(Registered Principal at Capital Management of the Carolinas)
Bit different reading vs. video but well presented
Prerequisites
Course Complexity: Intermediate
No advanced preparation or prerequisites are required for this course.
Education Provider Information
Company:
Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA
95113
Contact:
For more information regarding this course, including complaint and
cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to
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Patricia McCarthyMember
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