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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.  

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: November 11, 2019

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. Dissecting the Fraud Triangle
  3. Fraud: Focus on Corruption
  4. Fraud: Focus on Fraudulent Disbursements
  5. Fraud: Focus on Cash Component of Asset Misappropriation
  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 Fraud Schemes
  11. Fraud Risk Assessments

20 Reviews (79 ratings)Reviews

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
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
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
Member's Profile
This course is very practical to describe the process of determining fraud with financial statements.
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.
5
Anonymous Author
Gives very good tips on what to watch out for at before and after period-end reporting
4
Anonymous Author
Topics were relevant and helpful. Suggested procedures are great. Good organization.
5
Member's Profile
She did a good job of keeping one's attention as she has good inflection and tone.
5
Anonymous Author
I'm writing this review in hopes that I'll be able to print my CPE certificate.
4
Anonymous Author
The speaker provided additional guidance on financial statements fraud.
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
Good discussion on fraud relating to financial statements.
4
Anonymous Author
The instructor provides good overview of the information.

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 .
Course Syllabus
INTRODUCTION AND OVERVIEW
  6:15Introduction to Fraud: Focus on Financial Statement Fraud Part 2
Focus on Financial Statement Fraud
  8:30Bill and Hold
  7:29Bill and Hold Procedures
  12:34Return Provisions
  7:315 Receivables
  10:05AR Procedures
  10:12Early Delivery or Partial Shipment
  10:05Documentation
  10:53Liabilities and Expenses
  5:08Procedures
  13:47Related Parties
  9:07Improper Asset Valuation and Disclosures
CONCLUSION
  1:36Conclusion
CONTINUOUS PLAY
  1:53:12Fraud: Focus on Financial Statement Fraud Part 2
SUPPORTING MATERIALS
  PDFSlides: Focus on Financial Statement Fraud – Part Two
  PDFFocus on Financial Statement Fraud – Part Two Glossary/Index
REVIEW AND TEST
  quizREVIEW QUESTIONS
 examFINAL EXAM