Financial Statement Fraud Detection for Internal Auditors

 This workshop focuses on internal audit’s role in detecting financial statement fraud by identifying potentially significant or likely financial statement fraud schemes and developing audit steps to help detection them. Upon completion of this workshop, participants will be able to:

• Understand the different ways financial statement fraud is detected
• Understand changing patterns of financial statement fraud
• Apply risk assessment techniques to financial statement fraud detection
• Design internal audit steps to help detect common financial statement fraud schemes

Content

Internal Audit’s Role in Deterring and Detecting Financial Statement Fraud

• Financial Statement Fraud
• Internal Audit’s Role
• Corporate Governance

Revenue Recognition Manipulation

• Recording Fictitious Revenue
• Unresolved Contingencies
• Sales Billed but Not Shipped (“Bill and Hold”)
• Lack of Delivery, Incomplete Delivery or Lack of Customer Acceptance
• Accounting Improperly for Refunds, Exchanges, Cancellations, Refusals or Returns
• Swaps, Round-Tripping or Barter Arrangements

Manipulation of Assets

• Accounts Receivable Schemes
• Inventory Schemes
• Fixed Asset Schemes
• Improper Disclosures
• Common Schemes

Manipulation of Liabilities

• Accounts Payable Schemes
• Manipulation of Reserves
• Credit Management

Responding to Indicators of Potential Financial Statement Fraud

• Identify when an Internal Audit should become a Fraud Investigation
• Consultation with Legal Counsel
• Identifying Boundaries/Potential Conflicts
• Recent Trends in Financial Fraud

For Whom:

Directors, Managers, Staff in Internal Audit Departments, Accountants, Financial Analysts, Finance Managers and others who are involved in the audit process and want to be aware of what is best practice in modern time.