This course explores deceptive accounting practices used by companies to manipulate assets and liabilities. Participants will learn about specific asset manipulation techniques such as overvaluation of inventory, overstating of accounts receivables, valuation of intangible assets, and overstating deferred tax assets. Participants will also learn about liability manipulation techniques such as underreporting liabilities, off-balance-sheet financing, improper use of contingent liabilities, and hiding pension obligations. The course includes detailed examples and highlights the ethical implications and legal consequences of these practices.
Publication Date: March 2026
Topics Covered
- U.S. GAAP Susceptible to Deceptive Accounting
- Enron & WorldCom
- Asset Manipulation Techniques
- Overvaluation of Inventory
- Overstating Accounts Receivable
- Inflating Fixed Assets
- Valuation of Intangible Assets
- Overstating Deferred Tax Assets
- Liability Manipulation Techniques
- Underreporting Liabilities
- Off-Balance Sheet Financing
- Reclassifying Liabilities
- Improper Use of Contingent Liabilities
- Using Complex Financial Instruments
- Hiding Pension Obligations
- Misclassifying Debt as Equity
Learning Objectives
- Recognize the key motivations behind deceptive accounting techniques
- Identify areas of U.S. GAAP that are most susceptible to manipulation
- Identify techniques used by companies to manipulate asset valuation in financial statements
- Recognize techniques used by companies to conceal or misstate liabilities
Level
Overview
Instructional Method
Self-Study
NASBA Field of Study
Accounting (2 hours)
Program Prerequisites
None
Advance Preparation
None
Instructor
Kelen Camehl
Kelen is a recognized author and reviewer of CPE courses and has authored over 145 courses (350 CPE credit hours) covering a range of accounting, auditing, financial reporting, regulatory, and ethics topics. His courses are available for purchase from many online CPE providers including the AICPA. Kelen remained involved in CPA exam content development for nearly 10 years and authored more than a thousand multiple choice questions for various sections of the CPA exam. He also serves as an Editorial Advisor for the AICPA’s "Journal of Accountancy".
Kelen has nearly 20 years of progressive finance and accounting experience. He currently serves as an Accounting Policy Advisor with HP. Prior to HP, he served in multiple accounting roles in the oil & gas industry with ConocoPhillips including technical accounting policy, SOX compliance, and internal audit. He also gained public accounting experience with PricewaterhouseCoopers, working with various clients in the energy, electric, power, gas, and utility sectors.