Report on Financial Statement Fraud Scheme Case Study the...

Report on Financial Statement Fraud Scheme Case Study: The Importance of Timing ACC/556 Professor University of Phoenix December 19, 2011 Memo To: The Management From: Forensic Auditor Date: 12/19/2011 Subject: Case Study on the Importance of Timing and Financial Statement Fraud Scheme As our company is in process of conducting investigation to detect any financial statement fraud or abuse, I have come across the case where expenses were recorded in the financial statement under the period it was disbursed to vendor and actual services occurred in next or other financial year period. It’s against the regulation of SEC and GAAP guidelines. In this particular case the repair were completed in current†¦show more content†¦The sampling tools and techniques used in this investigation consists systematic random selection of data from selected sources. The forensic accountant use computer forensics, data analytics and interviews to allow them to assemble much of the required evidence for an investigation. This abuse was detected when we see the invoice of heavy amount paid by end of the last year without any inspection report or repair completion document in file. The furt her investigation showed it was done later this year. No employee took any funds to commit financial fraud or larceny but the financial statement were misleading to the users of those statements. A company may experience such type of abuse or corruption schemes developed at any given time, more than one area or all over the company. Corruption can be performed by fraudster employees who intentionally and wrongfully use their influence to gain personal financial gain from company business transaction. It can be limited to a particular department or it may exist in all structural levels. It is vital for a company to review financial status routinely to ensure proper accounting and reporting procedures are followed in entirety of company business transactions. It is extremely important to review before an end of year transactions with heavy amounts to ensure validity of amount and services occurred in that financial year.Show MoreRelatedAcc 5561986 Words   |  8 PagesCourse Descrip tion In this course, students are introduced to the conduct of fraud examinations, including a discussion of specific procedures used in forensic accounting examinations and the reasoning behind these procedures. Topics include an overview of fraud and abuse, forensic evidence, substantive procedures for cash outflow irregularities, substantive procedures for asset irregularities, financial statement fraud, and examination reporting. 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