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The Association of Certified Fraud Examiners (ACFE) has developed a fraud tree which categorizes types of fraud schemes into the following three primary areas:

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

Previous courses have addressed corruption and asset misappropriation related to fraudulent disbursements and financial statement fraud.   This course addresses asset misappropriation – specifically related to inventory and other assets.

To identify how fraud can be mitigated, individuals must understand the types of fraud most prevalent to their business.  Asset misappropriation is a scheme in which an employee steals or misuses the employing organization’s resources. Considering inventory and other assets, there are multiple methods in which fraud can occur.  These extend through the raw materials, work in process, and final goods stages.  It can relate to employee theft, vendor fraud or accounting irregularities.  This session will focus on the many methods involved in inventory fraud.

 

Learning Objectives

  • Explore the penalties for asset misappropriation.
  • Recognize the definitions of inventory and other assets.
  • Identify types of inventory fraud and relevant red flags within the raw materials and Work in Process (WIP) categories.
  • Explore the concept and relevant red flags for misstating inventory value.
  • Explore the concepts and red flags of accounting inventory type frauds.
  • Identify prevention methods for inventory fraud.
  • Explore the concept and relevant red flags for “other assets” fraud.

Included In Certifications

This course is included in the following Expert Certifications:

11 CoursesBusiness Fraud Certification

  1. Forensic Accounting and Investigation
  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

4 Reviews (17 ratings)Reviews

4
Anonymous Author
I like this course so much I just wish there were more fraud courses delivered in this modular video formats for my CFE requirement of CPE.
4
Member's Profile
After viewing all of Lynn's courses i have a good understanding of fraud schemes and controls to mitigate the risk.
5
Member's Profile
Nice refresher on the importance of managing fraud risks in the inventory account.
5
Member's Profile
Good discussion on inventory fraud and what to look out for.

Prerequisites

Course Complexity: Intermediate

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
  7:23Introduction to Fraud Tree: Focus on Inventory and Other Assests
Focus on Inventory
  17:51Inventory and Other Assests
  14:12Types of Inventory Fraud: Raw and Materials/WIP
  15:00Red Flags
  13:38Misstating Inventory Balances
  13:36Prevention
CONCLUSION
  6:38Other Assets
CONTINUOUS PLAY
  1:28:18Fraud Tree: Focus on Inventory
SUPPORTING MATERIALS
  PDFSlides: Fraud Tree: Focus on Inventory
  PDFFraud Tree: Focus on Inventory Glossary/Index
REVIEW AND TEST
  quizREVIEW QUESTIONS
 examFINAL EXAM