Financial Statement Fraud

Reading assignments are for Financial Statement Fraud Prevention and Detection by Zabihollah Rezaee and Richard Riley

Lesson and Objectives

Reading
Assignment

1. Financial Statement Fraud Defined

Chapter 1

The learning objectives for this lesson are to gain an understanding of:

• Will History Repeat Itself?
• A Closer Look.
• Definition of Financial Statement Fraud.
• Nature of Financial Statement Fraud.
• High-Impact Fraud Cases.
• Cost of Financial Statement Fraud.
• Fraud Studies and Regulatory Responses.
• Antifraud Programs.
• Occurrence, Prevention, and Detection.
• Lessons Learned and Applications for Practice.

2. Financial Reporting Structure.

Chapter 2

The learning objectives for this lesson are to gain an understanding of:

• Introduction.
• Financial Reporting System.
• Importance of Financial Information.
• Annual Financial Reporting Requirements.
• High-Quality Financial Reports.
• Six-Legged Stool of the Financial Reporting Process.
• Corporate Financial Reports.
• Corporate Reporting Challenges.
• Financial Restatements.
• Fair Value.
• Stock Options Accounting.
• XBRL- Generated Financial Reports.
• Antifraud Applications for Practice.

3. Cooking the Books Equals Fraud

Chapter 3

The learning objectives for this lesson are to gain an understanding of:

• Why Does Financial Statement Fraud Occur?
• Profile of Financial Statement Fraud.
• Waste Management, Inc.: Financial Statement Fraud Analysis.
• Antifraud Applications for Practice.
• Notes.
• 4 Realization, Prevention, and Detection.
• Introduction.
• Realization.
• The 3Cs Model.
• Financial Statement Fraud Prevention.
• Financial Statement Fraud Detection.
• Correction Procedures.
• Prevention, Detection, and Correction Strategies.
• Antifraud Applications for Practice.

4. Realization, Prevention, and Detection

Chapter 4

The learning objectives for this lesson are to gain an understanding of:

• Realization.
• The 3Cs Model.
• Financial Statement Fraud Prevention.
• Financial Statement Fraud Detection.
• Correction Procedures.
• Prevention, Detection, and Correction Strategies.
• Antifraud Applications for Practice.

5.Taxonomy and Schemes

Chapter 5

The learning objectives for this lesson are to gain an understanding of:

• Symptoms of Financial Statement Fraud.
• Common Fraud Schemes.
• Common Revenue Fraud Schemes.
• Financial Statement Fraud Red Flags.
• Whistle-blower Regulations.
• Antifraud Applications for Practice.

6. Role of Corporate Governance

Chapter 6

The learning objectives for this lesson are to gain an understanding of:

• Definition of Corporate Governance.
• Role of Corporate Governance.
• Corporate Governance Structure.
• Characteristics of Corporate Governance.
• Corporate Governance Functions.
• Global Corporate Governance.
• Anti-Fraud Applications for Practice.

7. Board of Directors' Oversight Responsibility

Chapter 7

The learning objectives for this lesson are to gain an understanding of:

• The Role of the Board of Directors.
• Composition of the Board of Directors.
• Functions of the Board of Directors.
• Attributes of Boards of Directors.
• Antifraud Applications for Practice.
• Protocol: A Plan for Reaction to Allegations of Misconduct.

8. Audit Committees and Corporate Governance

Chapter 8

The learning objectives for this lesson are to gain an understanding of:

• Audit Committee.
• Audit Committee Attributes.
• Audit Committee Roles and Responsibilities.
• Audit Committee Charters.
• Chairperson of Audit Committees.
• Audit Committee Report.
• Audit Committees' Roles in Preventing and Detecting Financial Statement Fraud.
• Antifraud Applications for Practice

9. Management Responsibility

Chapter 9

The learning objectives for this lesson are to gain an understanding of:

10. Role of the Internal Auditor

Chapter 10

The learning objectives for this lesson are to gain an understanding of:

• Internal Auditors and Corporate Governance.
• Internal Auditors' Responsibilities.
• Internal Audit Fraud Standards.
• Efficacy of Internal Audit in Financial Statement Fraud Prevention and Detection.
• Cooperation between External and Internal Audit.
• Internal Audits and the Audit Committee.
• Internal Control.
• Antifraud Applications for Practice.

11. Role of External Auditors

Chapter 11

The learning objectives for this lesson are to gain an understanding of:

• Independent Audit of Financial Statements.
• Independent Auditor and Financial Statement Fraud.
• Independent Audit and Internal Control.
• The Report on Internal Controls.
• Fraud Detection Audit Procedures.
• Materiality Guidance.
• Risk-Factors of Financial Statement Fraud.
• Communication of Fraud.
• Antifraud Applications for Practice.

12. Governing Bodies

Chapter 12

The learning objectives for this lesson are to gain an understanding of:

• Role of Regulation in Corporate Governance.
• Sarbanes-Oxley Act Of 2002.
• Securities and Exchange Commission.
• SEC's Regulation Fair Disclosure.
• Financial Fraud Detection and Disclosure Act of 1992.
• Private Securities Reform Act of 1995.
• SEC and Financial Statement Fraud.
• SEC Fraud Prevention Activities.
• SEC Fraud Detection Activities.
• SEC Fraud Enforcement Activities.
• Role of the Financial Accounting Standards Board.
• Antifraud Applications for Practice.

13. Fraud in a Digital Environment

Chapter 13

The learning objectives for this lesson are to gain an understanding of:

• Digital Economy.
• Electronic Commerce.
• Changes in Business Environment.
• Electronic Financial Reporting.
• Antifraud Applications for Practice.

The learning objectives for this lesson are to gain an understanding of:

• The Interrelationship: Auditing, Fraud Examination and Forensic Accounting.
• Forensic Accounting Practice.
• Fraud Examination.
• Certification in Financial Forensics.
• Training Competent and Ethical Fraud Examinaers and Forensic Accountants.
• Fraud Examination and Forensic Accounting Education.
• Role of Research in a Profession.
• Antifraud Applications for Practice.