This course builds off Focus on Financial Statement Fraud part one.  It delves further into concepts of financial statement fraud as defined by the Association of Certified Fraud Examiners (ACFE).  The ACFE fraud tree categorizes types of fraud schemes into three areas:

  • Corruption
  • Asset Misappropriation
  • Financial Statement (FS) Fraud

Financial Statement fraud is the deliberate misrepresentation of the financial condition of an enterprise. It is accomplished through intentional misstatement or omission of amounts or disclosures in the FS to deceive financial statement users.  According to the ACFE’s Report to the Nation, in 2016, financial statement fraud comprised 9.6% of cases with a median dollar loss of $975,000.  The typical duration of financial statement fraud prior to detection is 24 months.

There are numerous methods under which revenue should be recognized.  Accordingly, there are numerous ways perpetrators try to side-step the process.  In part one of this series, we focused on areas of revenue recognition.  This course will focus on other portions of the fraud tree under financial statement fraud including:  timing, concealed liabilities and revenue, overstated liabilities and expenses, improper asset valuation and improper disclosures.  Each of these areas are critical components for understanding financial statement fraud.  

Note: Information within this course comes from readily available public domain documents and is utilized by the trainer as a supplement for relaying the course content.

Learning Objectives
  • Explore financial statement fraud related to the concept of timing.
  • Discover specific timing types of financial statement schemes and identify procedures used to mitigate potential fraud.
  • Recognize fraud schemes related to bill and hold, sales with special terms, and documentation.
  • Explore types of financial statement (FS) schemes and mitigation techniques for accounting entries.
Last updated/reviewed: August 4, 2023

Included In Certifications

This course is included in the following Certification Programs:

11 CoursesBusiness Fraud Identification and Prevention Certification

  1. Introduction to Forensic Accounting
  2. The Fraud Triangle
  3. Fraud: Focus on Corruption
  4. Fraud: Focus on Fraudulent Disbursements
  5. Fraud: Focus on Cash And Assets
  6. Fraud: Focus on Inventory
  7. Fraud: Focus on Financial Statement Fraud – Part One
  8. Fraud: Focus on Financial Statement Fraud – Part Two
  9. Fraud and COSO 2013
  10. Top Occupation Fraud Schemes - ACFE Report to the Nations
  11. Fraud Risk Assessments
40 Reviews (172 ratings)

Reviews

5
Anonymous Author
Great continuation of the Financial Statement Fraud Series. I would recommend this for any any accountants, internal/external auditors, or fraud examiners who wish to enhance their awareness of potential financial statement fraud.

4
Member's Profile
Another informative course from Lynn Fountain full of real-world examples and practical audit and control responses. Recommendable for all professionals.

5
Anonymous Author
Another great course from Lynn. I appreciate the way you explain complicated things using real life examples. It makes it much easier to understand.

4
Anonymous Author
I found the financial statement fraud related to the concept of timing very interesting, also the other segments of this course were interesting.

5
Member's Profile
Great course about financial statement fraud cases. Need to spend at least 2 hours to go over the entire presentation and follow the main points.

5
Member's Profile
I really enjoyed the course as I learned a lot about the different types of revenue recognition fraud and techniques to identify them.

5
Member's Profile
THIS INSTRUCTOR IS ONE OF MY FAVORITES - TOPICS ON POINT AND DELIVERY EXCELLENT

3
Member's Profile
this course if very basic and some of the materials and examples in the course are not accurate or up to date with changes in GAAP

5
Anonymous Author
this course is helpful and have a lot and great information. and those situation we actually meet in our daily business life .

3
Anonymous Author
Concepts are a bit complex and not easy to follow. Had to review the course materials clearly to answer the exam questions.

5
Anonymous Author
Good overall review course and good tips and tricks of things to look out for when it comes to financial statement fraud.

5
Member's Profile
I thought the course was very thorough and went into great detail about different fraud schemes and how to detect them.

5
Anonymous Author
This was an excellent course. It provides very helpful information as to how to identify financial statement fraud.

5
Anonymous Author
This is a great course outlining the different fraud scenarios, recommend anyone performing a fraud risk analysis.

5
Member's Profile
This course is very practical to describe the process of determining fraud with financial statements.

4
Anonymous Author
An interesting and refreshing course for me. Nothing surprised me. Will be beneficial to beginners.

5
Anonymous Author
Very Informative and Exhaustive presentation on the terms related to financial statement fraud

4
Member's Profile
Met objectives and expectations of the course. supporting materials were well organized.

4
Member's Profile
Great Course that provided a good high level summary of some of the major scheme areas.

4
Anonymous Author
This course certainly provided a good overall overview of financial statement fraud.

5
Anonymous Author
Gives very good tips on what to watch out for at before and after period-end reporting

5
Anonymous Author
Another excellent course by Lynn Fountain. Interesting, informative and well written.

4
Anonymous Author
Topics were relevant and helpful. Suggested procedures are great. Good organization.

3
Member's Profile
Good course, but didn't include all potential frauds related to Financial statements

5
Member's Profile
She did a good job of keeping one's attention as she has good inflection and tone.

4
Anonymous Author
This course provides a good understanding of methods of financial statement fraud.

5
Anonymous Author
Well developed and presented course. Met objectives and great learning mechanism.

5
Anonymous Author
I'm writing this review in hopes that I'll be able to print my CPE certificate.

5
Anonymous Author
Great program, great test and quiz questions. Thank you for a solid course.

4
Anonymous Author
The speaker provided additional guidance on financial statements fraud.

5
Member's Profile
Great course Great course Great Great course Great courseGreat course

4
Anonymous Author
Good background and continuation to part 1 of course with same name

5
Anonymous Author
really like the review questions mixed throughout the presentation

5
Member's Profile
Taking these courses makes me worry about the stocks in my 401(k).

5
Member's Profile
Great course. Learnt new topics that I can implement on the job.

3
Member's Profile
fraud focus on financials is a good course for all in business

5
Member's Profile
Good discussion on fraud relating to financial statements.

4
Anonymous Author
The instructor provides good overview of the information.

5
Anonymous Author
This was a good course. I learned a lot in the course.

4
Anonymous Author
Explored FS fraud related to the concept of timing

Prerequisites
Course Complexity: Advanced

No Advanced Preparation or Prerequisites are needed for this course. However, it is recommended to take the other courses in the series prior to completing this one.

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 .
Instructor for this course
Course Syllabus
INTRODUCTION AND OVERVIEW
  Introduction to Fraud: Focus on Financial Statement Fraud Part 26:16
Focus on Financial Statement Fraud
  Bill and Hold8:30
  Bill and Hold Procedures7:29
  Return Provisions12:34
  5 Receivables7:31
  AR Procedures10:05
  Early Delivery or Partial Shipment10:13
  Documentation10:05
  Liabilities and Expenses10:53
  Procedures5:08
  Related Parties13:48
  Improper Asset Valuation and Disclosures9:08
CONCLUSION
  Conclusion1:36
CONTINUOUS PLAY
  Fraud: Focus on Financial Statement Fraud Part 2 1:53:17
SUPPORTING MATERIALS
  Slides: Focus on Financial Statement Fraud – Part TwoPDF
  Focus on Financial Statement Fraud – Part Two Glossary/IndexPDF
REVIEW AND TEST
  REVIEW QUESTIONSquiz
 FINAL EXAMexam