Course Description

This course will equip students and young professionals with the tools to identify the various methods by which financial statement fraud is perpetrated. The course will cover an in-depth assessment of the methods used through case studies of companies that have engaged in such fraudulent practices.


Learners will also learn techniques to investigate financial statement fraud including review of journal entries, data analytics, testing of internal controls. Finally, learners will be able to summarize the findings of their investigation in a report that is clear and supported with adequate evidence.

Prerequisite Knowledge

Students and professionals should possess certain basic proficiency in accounting and technology as follows: 

Basic accounting concepts:

  • Understand key accounting concepts such as assets, liabilities, expenses, revenue recognition, materiality, matching principle etc.
  • Understand how financial statements are prepared and use of estimates and judgments; 
  • Understand and apply basic financial ratios and inter-relationship between asset/income categories and expense/liability categories

Basic computer skills:
Familiarity and use of Microsoft Office suite of products and in particular, use of Excel for data analysis

What's in it for you?

Understand the various methods by which financial statements are misstated

Understand techniques to investigate financial statement fraud

Demonstrate forensic expertise in investigating financial statement fraud regardless of the method used to perpetrate such fraud

Prepare investigation reports that are clear, concise, objective and reliable.

What you will learn?

  • Week 1
    - Brief introduction
    - Red flags that may indicate financial statement fraud
    - Application of the fraud triangle to financial statement fraud

  • Week 2
    - Discussion on methods used to falsify and/or record fictitious revenue including red flags and illustrative examples .

  • Week 3
    - Discussion on methods used to falsify and/or record fictitious inventory including red flags and illustrative examples.

  • Week 4
    - Discussion on methods used to defer or delay recording of expenses including red flags and illustrative examples.

  • Week 5
    - Discussion on judgements and estimates used in preparation of financial statements including red flags and illustrative examples.

  • Week 6
    - Discussion on off Balance Sheet transactions – methods, Red flags and illustrative examples.

  • Week 7
    - Discussion on Companies Act Rules with respect to Related Party Transactions and how Related Parties are used to falsify financial statements
    - Red flags and illustrative examples

  • Week 8
    - Discussion on Companies Act Rules with respect to Disclosures.

  • Week 9 and 10
    - Identify and formulate financial statement fraud hypothesis and plan to investigate such fraud.
    - Forensic techniques to investigate financial statement fraud including test of controls, review of journal entries, data analytics, interviews, use of public data/information and report writing.

  • Week 11 and 12
    - Students will be given a case study to apply the forensic concepts and techniques in a self-paced environment.
    - Students will present a sample case study (graded).

Instructor

Ms. Rajarao, is a Chartered Accountant from the Institute of Chartered Accountants of India and a Certified Fraud Examiner from the Association of Certified Fraud Examiners, USA, the world’s largest anti-fraud organization. Ms. Rajarao was the first Indian to be elected to the Board of Regents of the Association of Certified Fraud Examiners (ACFE) and she recently served as the Vice-Chair of the ACFE’s Board of Regents. Ms. Rajarao has over 25 years of experience and expertise in numerous forensic accounting assignments, fraud investigations and regulatory proceedings in India and the United States that required reconstruction of complex financial records, electronic data and large data sets of accounting transactions and documents