Financial Statement Fraud: Strategies for Detection and Investigation
Although financial statement fraud is the least frequently encountered fraud, it is by far the most costly, at a median loss of $1 million per case. Yet, the indirect losses from financial statement fraud—jobs, support, morale, and loyalty—are also significant and almost impossible to measure. Learn how to spot the warning signs before the damage is done.Financial Statement Fraudexplores the many different methods of perpetrating financial statement fraud, the accounting principles that are exploited, and the methods to detect and prevent fraud in any organization.Assuming an understanding of basic financial statements and the purpose each serves, as well as basic accounting concepts, author Gerard Zack highlights the many different types of fraud schemes.Financial Statement Fraudprovides auditors, fraud investigators, government agencies, and investment analysts with detailed descriptions of the most common or emerging schemes involving the preparation and issuance of fraudulent financial statements.Filling the need for practical guidance on financial statement fraud and the roles and responsibilities within companies,Financial Statement Fraudfeatures:References to pertinent U.S. and international accounting standards violated in the preparation of fraudulent financial statementsA wide range of detection tools, from the simplest of ratios to complex analyses and tests, as well as fraud indicatorsA comprehensive, global approach that includes U.S. GAAP and IFRSRed flags and ratios to help you detect financial statement fraud schemesCoverage of auditor liability: when is an auditor liable for failing to detect fraud?Real-world cases that illustrate many of the fraud schemes featured throughout the bookA companion website includes copies of SEC Accounting and Auditing Enforcement Releases (AAERs), complaints that were filed, and various other documents associated with most of the cases cited in the book. These documents provide all of the details associated with each case, enabling researchers to perform their own analysis to more fully understand the schemes and relate them to the detection tips provided in the book.Financial statement fraud can cost an organization more than just revenue. Arm yourself with the knowledge to identify where it happens, when to expect it, and how to detect it with the expert guidance found inFinancial Statement Fraud.