Instructor for this course

Companies of all sizes are susceptible to employee fraud including embezzlements, thefts, and misappropriations of assets as well as Financial Reporting Fraud (FRF), also known as “cooking the books”, in order to show a rosy picture of the company so that it appears more attractive to investors than it really is. The 2016 Association of Certified Fraud Examiners (ACFE) Report to the Nations reveals that the “typical organization loses 5% of revenues in a given year as a result of fraud, which exceeded $6.3 billion, with an average loss per case of $2.7 million”.

This can occur in situations where there are unexplained accounting anomalies, unusually rapid revenue or profit growth, weak internal controls, and aggressive financial actions by senior management, among other things. The existence and persistence of FRF has undermined the integrity and reliability of public financial information, eroded investor confidence, and has had detrimental effects on the safety, soundness, and efficiency of financial markets worldwide. The very viability of the business as well as the safety of financial markets in general are threatened when the existence and persistence of FRF go undetected.

Financial reporting fraud can be detected with effective corporate governance, which includes effective antifraud policies and programs by the board of directors, management, and auditors. Effective antifraud programs, —focusing on fraud awareness and education in the workplace environment, whistle-blowing policies and procedures of encouraging employees to report suspicious behavior without fear of reprisals, adequate internal control procedures designed to prevent and detect fraud, and conducting surprise audits—are all examples of actions that the board of directors, management, and other corporate gatekeepers can take to significantly reduce FRF.

Please join Zabihollah (Zabi) Rezaee, noted educator, author, and speaker as he discusses how antifraud policies, programs, and procedures should be designed to deter, prevent, and detect financial reporting fraud. Dr. Rezaee offers insights concerning the role of ethics and corporate governance in forensic accounting education and practice, including a discussion of corporate culture, control structure, and fraud procedures designed to detect financial reporting fraud before irreparable damage has been done.

Course Series

This course is included in the following series:

3 CoursesCorporate Governance

  1. Corporate Governance: Responsibilities of Corporate Gate Keepers
  2. Audit Committee Effectiveness in the Aftermath of 2007 - 2009 Global Financial Crisis
  3. Preventing and Detecting Financial Reporting Fraud

Learning Objectives

  • Explore the significance of financial reporting fraud
  • Recognize the causes and consequences of financial reporting fraud
  • Identify the antifraud roles and practices of corporate gatekeepers including the board of directors, management, regulators, internal auditors, and external auditors
  • Discover the role of corporate culture, control structure, and antifraud procedures in preventing and detecting financial reporting fraud
  • Recognize the importance of forensic-related audit procedures and forensic accounting education/training
  • Explore the significance of corporate governance and ethics education/training
  • Explore the role of corporate culture, control structure, and antifraud procedures in preventing financial scandals
Last updated/reviewed: May 14, 2018

14 Reviews (60 ratings)Reviews

Anonymous Author
The course presents a very good summary of the financial statements fraud. The slides are helpful however, the presenter should just have exclude those items that he ended up saying "he could not discuss further" such as in the section where he was explaining the type of person that will most likely commit fraud. The facilitator is very knowledgeable of the topic. This is a good course to all employees at any level in an organization.
Member's Profile
The course is great overall. It has well defined concepts. However, I believe Question 6 (What is the top audit deficiency in discovering financial statement fraud?) is worded incorrectly. It should read....What is NOT the top audit deficiency in discovering financial statement fraud?
Member's Profile
Good summaries of concepts and good diagrams. I liked the expansion of the fraud triangle concept. Some contemporary case studies or news examples would have been helpful to break up the material and apply the concepts, though.
Member's Profile
Helpful information on financial reporting fraud, and provides insight on best practices in detection and prevention for an organization.
Member's Profile
Well-organized. I'm surprised what more I can learn about fraud. Good course for anyone teaching forensic accounting.
Member's Profile
A good comprehensive course on FRF. The course covers a lot of material and is illustrated very well.
Anonymous Author
This is an good presentation with a lot of information and explanations.
Member's Profile
nice discussion about role of management and steps to reduce frud
Member's Profile
Good overview of fraud as it relates to financial reporting.
Member's Profile
Great refresher on preventing and detecting fraud.
Anonymous Author
Interesting presentation.
Member's Profile
Great Presentation
Member's Profile
Good information
Anonymous Author
Great course.


Course Complexity: Intermediate

No Advanced Preparation or Prerequisites are needed for this course, but completion of the other courses in this series will be helpful.

Education Provider Information

Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
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
Prevention and Detection
  15:45Definition of Fraud
  9:55Cost of Fraud
  14:16Cost of Fraud (Continued)
  6:33Forensic Accounting
  10:47Elements of Fraud
  11:41Elements of Fraud (Continued)
  10:37Fraud Symptoms
  11:11Fraud Detection
  9:19Fraud Detection (Continued)
  12:00Forensic Audit Procedures
  12:15Prevention, Detection, Correction of FSF
  5:29Course Conclusion
Continuous Play
  2:11:20Preventing and Detecting Financial Reporting Fraud
  PDFSlides: Preventing and Detecting Financial Reporting Fraud
  PDFPreventing and Detecting Financial Reporting Fraud Glossary/Index