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Study Guide - Financial Statement Fraud

The study guide is provided to guide you through the course material in a step by step format.

Course material is Financial Statement Fraud Prevention and Detection .  The cost of the text and free shipping is included in the price.

Prerequisite: None

Course level: Basic

Advanced preparation: None

Teaching method: Text and exam

 

1) Financial Statement Fraud Defined

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.

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.

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.

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.

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.

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.

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.

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.

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

  • Management Financial Reporting Responsibilities.
  • Management's Role in Financial Statement Fraud Prevention and Protection.
  • Management Motives and Incentives.
  • Management Override of Internal Control.
  • Gamesmanship.
  • Risk Management.
  • Antifraud Applications for Practice.

10) Role of the Internal Auditor.

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.

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

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.

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.

14) Fraud Examination Practice, Education and Research.

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.

Study Guide - Detecting Creative Accounting Practices

The study guide is provided to guide you through the course material in a step by step format.

Course material is The Financial Numbers Game .  The cost of the text and free shipping is included in the price.

Prerequisite: None

Course level: Basic

Advanced preparation: None

Teaching method: Text and exam

 

Chapter 1. Financial Numbers Game.

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

  • Rewards of the Game
  • Classifying Creative Accounting Practices
  • Plan of This Book

Chapter 2. How the Game Is Played.

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

  • Accounting Policy Choice and Application.
  • Fraudulent Financial Reporting.
  • Cleaning Up after the Game.
  • Clarifying Terminology.

Chapter 3 . Earnings Management: A Closer Look.

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

What Is Earnings Management?

  • Incentives and Conditions for Earnings Management.
  • Earnings Management Techniques.
  • Evidence of Earnings Management.
  • Effectiveness of Earnings Management
  • Is Earnings Management Good or Bad?

Chapter 4. The SEC Responds. 

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

  • The Chairman's Speech.
  • The Action Plan.
  • Subsequent Developments.
  • Enforcing the Securities Laws.

Chapter 5. Financial Professionals Speak Out.

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

  • Survey of Financial Professionals.
  • Survey Results.

Chapter 6. Recognizing Premature or Fictitious Revenue. 

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

  • Is It Premature or Fictitious Revenue?
  • When Should Revenue Be Recognize
  • Detecting Premature or Fictitious Revenue.
  • Checklist to Detect Premature or Fictitious Revenue

Chapter 7. Aggressive Capitalization and Extended Amortization Policies.

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

  • Cost Capitalization.
  • Detecting Aggressive Cost Capitalization Policies.
  • Amortizing Capitalized Costs.
  • Detecting Extended Amortization Periods
  • Checklist to Detect Aggressive Capitalization and Extended Amortization Policies.

Chapter 8. Misreported Assets and Liabilities. 

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

  • Link with Reported Earnings.
  • Boosting Shareholders' Equity.
  • Overvalued Assets.
  • Undervalued Liabilities.
  • Checklist to Detect Misreported Assets and Liabilities.

Chapter 9. Getting Creative with the Income Statement: Classification and Disclosure.

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

  • Current Income Statement Requirements and Practices.
  • Reporting Comprehensive Income. Creative Income Statement Classifications.
  • Creativity with Other Aspects of the Income Statement.

Chapter 10. Getting Creative with the Income Statement: Pro-Forma Measures of Earnings.

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

  • Recasting the Bottom Line: Pro-Forma Earnings Measures.

Chapter 11. Problems with Cash Flow Reporting.

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

  • Reporting Cash Flow.
  • Problems with Reported Operating Cash Flow.
  • Using Operating Cash Flow to Detect Creative Accounting Practices.
  • Checklist for Using Operating Cash Flow to Detect Creative Accounting Practices

 

Study Guide - Payroll Best Practices

The study guide is provided to guide you through the course material in a step by step format.

Course material is Payroll Best Practices.  The cost of the text and free shipping is included in the price.

Prerequisite: None

Course level: Basic

Advanced preparation: None

Teaching method: Text and exam

 

Chapter 1. Success or Failure with Best Practices

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

  • The most fertile ground for best practices
  • Implementing best practices
  • Best practice duplication
  • Why best practices fail

Chapter 2. Employee Time Tracking

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

  • Switching to salaried positions
  • Reducing the number of pay codes
  • Eliminating personal leave days
  • Using honor system to track vacation and sick time
  • Avoiding job costing through the payroll system
  • Using exception time reporting
  • Using bar-coded time clocks
  • Using biometric time clocks
  • Installing a Web-based timekeeping system
  • Installing automated time sheet reminders
  • Tracing time with mobile phones

Chapter 3. Employee Benefits and Deductions

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

  • Prohibiting deductions for employee purchases
  • Disallowing prepayments
  • Minimizing payroll deductions
  • Capping group term life insurance coverage at the IRS exclusion limit
  • Charging employees a fee for garnishment processing
  • Isolating in-pats and ex-pats in separate pay groups
  • Including accrued vacation in the payroll remittance
  • Posting vacation information in the timekeeping system
  • Automating 401(k) plan enrollment
  • Granting employees immediate 401(k) eligibility
  • Automating garnishment transaction
  • Automating option tracking
  • Creating employee self-service for payroll changes
  • Creating employee self-service for benefit changes
  • Linking employees to withholding calculator of the IRS

Chapter 4. Payroll Forms and Reports

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

  • Eliminating reports
  • Posting forms on an intranet sit
  • Automating the annual W-4 review notice to employees
  • Issuing electronic W-2 forms to employees
  • Basing pay raises on an automated step increase report
  • Storing I-9 forms in an electronic format
  • Automating fax-back of payroll forms

Chapter 5. Payments to Employees 

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

  • Using direct deposit
  • Stopping delivery of checks to employees at the office
  • Paying employees through payroll cards
  • Offer clear cards to employees
  • Offering prepaid flexible sending account cards
  • Offering prepaid incentive cards
  • Offering relocating cards to pay moving expenses
  • Sending payroll remittances by email
  • Posting payroll remittances on the company intranet
  • Allowing online payroll remittance viewing only if employees use direct deposit
  • Installing ATMs at company locations
  • Charging intercompany fees for manual paychecks
  • Using automated folders and sealers for paychecks
  • Using the IRS letter-forwarding service to deliver unclaimed paychecks

Chapter 6 . Commission Calculations and Payments

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

  • Simplifying the commission structure
  • Constructing a standard commission terms table
  • Periodically issuing a summary of commission rates
  • Calculating commissions automatically in the computer systems
  • Installing incentive compensation management software
  • Paying commissions only from cash received
  • Calculating final commissions from actual data
  • Including commissions payments in payroll payments
  • Lengthening the interval between commission payments
  • Periodically auditing commissions paid
  • Posting commissions payments on the company intranet
  • Avoiding adjusting preliminary commission accrual calculations

Chapter 7. Payroll Outsourcing 

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

  • Outsourcing the payroll function
  • Using web-based payroll outsourcing
  • Outsourcing benefits administration to a payroll supplier
  • Outsourcing tax filings
  • Outsourcing W-2 form creation and delivery
  • Linking hosted payroll processing to an ERP system
  • Outsourcing unemployment claims management

Chapter 8. Payroll Management

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

  • Creating a policies and procedures manual
  • Issuing activity calendars to all payroll employees
  • Creating a payroll training program
  • Implementing cross-training
  • Requiring payroll certifications
  • Continually reviewing transaction errors
  • Eliminating all transaction backlogs
  • Processing nonpay-affecting changes during off-peak periods
  • Implementing process centering
  • Minimizing payroll cycles
  • Minimizing off-cycle payrolls
  • Storing upcoming transaction in dated folders
  • Creating a year-end payroll processing checklist
  • Simplifying the pay structure
  • Linking the payroll and human resources databases
  • Merging the payroll and human resources departments
  • Linking payroll changes to employee events
  • Linking the 401(k) plan to the payroll system
  • Making electronic child support garnishment payment
  • Installing manager self-service
  • Automating employment and income verification requests
  • Publishing answers to frequently asked questions on an intranet site
  • Operating a payroll help desk
  • Implementing a service level agreement with other departments.
  • Designating intermediaries to maintain contact with fellow service providers
  • Using the common paymaster rule to reduce payroll taxes
  • Reviewing the impact of voluntary unemployment contributions
  • Acquiring the unemployment experience rating of a predecessor organization

Chapter 9. Payroll Systems

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

  • Consolidating payroll systems
  • Installing an integrated human resources and payroll system
  • Installing an enterprise workforce management system
  • Installing a work-flow management system
  • Implementing document imaging
  • Installing a data warehouse
  • Using a forms/rates data warehouse for automated tax filings
  • Avoiding legacy payroll systems

10. Payroll Controls

  • The learning objectives for this lesson are to gain an understanding of:Creating a backup system for payroll records
  • Isolating access to the payroll check printing capability
  • Scanning fingerprints at user workstations
  • Incorporate copy protection features into check
  • Implementing positive pay
  • Initiating direct deposit prenotifications
  • Creating standard error-checking reports
  • Reviewing payroll trends after each pay run
  • Creating standard payroll audit reports
  • Reconciling the payroll bank account every day with online Internet access
  • Verifying that the payroll database has been updated with all manual checks
  • Verifying amounts owed by employees at termination
  • Verifying that year-end paid leave balances are accrued and carried forward properly
  • Reviewing insurance for presence of ineligible family members

Chapter 11. Payroll Measurements

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

  • Payroll transaction fees per employee
  • Payroll transaction error rate
  • Ratio of W-2c toW-2 forms issued
  • Proportion of payroll entries to headcount
  • Annualized wages per employee
  • Net benefits cost per employee
  • Revenue per employee

Chapter 12. Payroll Policies and Procedures

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

  • Policies for payroll best practices
  • Timekeeping procedures in a best practices environment
  • Payroll processing procedures in a best practices environment
  • Payment distribution procedures in a best practices environment

13. Best Practices Implementation Plan

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

  • Improving payroll management
  • Reducing transaction volume
  • Automating timekeeping\
  • Implementing self-service
  • Making electronic payments
  • Installing metrics
  • Ensuring ongoing improvements

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