Description

This course provides an overview of common fraudulent practices aimed at inflating revenue and earnings, as well as manipulating expenses. It examines the tactics used by some companies to misstate revenue, manage earnings artificially, and underreport or misclassify expenses. Understanding these fraudulent schemes allows auditors to better identify signs of manipulation.

Chapter 1: Revenue and Earnings Manipulation – Overview

This chapter provides an overview of common methods of manipulating revenue and earnings, which can mislead stakeholders and distort financial statements. It covers inflating earnings through non-recurring items, overstating deferred revenue, backdating transactions, and using fraudulent journal entries.

Chapter 2: Expense and Liability Fraud – Overview

This chapter examines fraudulent activities that involve understating expenses and liabilities to create a false financial picture. Topics include misclassifying financial statement items, improper use of reserves, misrepresenting lease classifications, and structuring transactions to avoid regulatory thresholds.