Detecting Financial Statement Fraud - Revenue, Earnings, and Expense Manipulation
Author: Kelen Camehl
| CPE Credit: |
2 hours for CPAs |
This course provides an overview of common fraudulent practices aimed at inflating revenue and earnings, as well as manipulating expenses. It examines the tactics used by some companies to misstate revenue, manage earnings artificially, and underreport or misclassify expenses. Understanding these fraudulent schemes allows auditors to better identify signs of manipulation.
Publication Date: March 2025
Topics Covered
- Fraud
- Fraudulent schemes
- How to identify signs of manipulation
- Inflating revenue and earnings
- Manipulating expenses
Learning Objectives
- Identify common methods of manipulating revenue and earnings in financial statements
- Recognize indicators of inflating earnings with non-recurring items and overstating deferred revenue
- Recognize how to distinguish between legitimate and fraudulent journal entries
- Recognize indicators of backdating transactions and how they can impact financial reporting
- Identify fraudulent activities that involve understating expenses and liabilities in financial statements
- Recognize common schemes for misclassifying financial statement items and manipulating reserves
- Recognize how to distinguish between legitimate and fraudulent lease classifications under accounting standards
Level
Overview
Instructional Method
Self-Study
NASBA Field of Study
Auditing (2 hours)
Program Prerequisites
None
Advance Preparation
None
