Financial Statement Fraud (Completed)

Financial statement fraud is one of the least common—but most financially devastating—forms of occupational fraud. When executives manipulate revenues, expenses, assets, or liabilities, the resulting misinformation can mislead investors, lenders, regulators, and other stakeholders, often causing significant economic loss and long-term reputational damage. This course provides accounting and financial professionals with a practical framework for understanding how financial statement fraud occurs and how it can be detected and prevented.

Led by Susan Harper, Certified Fraud Examiner and retired IRS Internal Revenue Agent, this course explores why financial statement fraud is committed, the pressures and incentives that drive it, and the schemes most commonly used to manipulate financial reporting. Participants will examine fraud trends, red flags, and detection techniques—including financial statement analysis and effective interview strategies—along with prevention measures and the potential civil and criminal consequences of committing financial statement fraud. Real-world case studies are used throughout the program to reinforce learning and application.

Who Should Attend
This course is designed for professionals who prepare, analyze, audit, or rely on financial statements and want to strengthen their ability to identify and respond to fraud risk.

Topics Covered

• Overview of financial statement fraud and its impact
• Costs, trends, and motivations behind financial statement fraud
• Common fraud schemes involving revenue, assets, and liabilities
• Red flags and warning signs
• Financial statement analysis techniques
• Interview strategies for fraud detection
• Fraud prevention and internal control considerations
• IRS and regulatory consequences
• Financial statement fraud case studies

Learning Objectives

• Identify the pressures, opportunities, and rationalizations that contribute to financial statement fraud
• Recognize common financial statement fraud schemes and associated red flags
• Apply analytical techniques and interview methods to detect potential financial statement fraud
• Evaluate internal controls and governance practices designed to prevent financial statement fraud
• Analyze the legal, financial, and professional consequences of committing financial statement fraud

Level
Basic

Instructional Method
Group: Internet-based

NASBA Field of Study
Auditing (2 hours)

Program Prerequisites
None

Advance Preparation
None