1 / 15

Forensic Accounting BA 124

Forensic Accounting BA 124. Professor Bill O’Brien. Today’s Topics. Seriousness of fraud Definition of fraud Types of fraud Criminal versus civil statutes Fraud-related careers. Remember the “P” in CPA. The public trust is essential You have only one reputation. Cost of Fraud.

leia
Download Presentation

Forensic Accounting BA 124

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Forensic AccountingBA 124 Professor Bill O’Brien FORENSIC ACCOUNTING – BA 124 - Fall 2010

  2. Today’s Topics • Seriousness of fraud • Definition of fraud • Types of fraud • Criminal versus civil statutes • Fraud-related careers FORENSIC ACCOUNTING - BA124 - Fall 2010 Slide 1-2

  3. Remember the “P” in CPA • The public trust is essential • You have only one reputation FORENSIC ACCOUNTING - BA124 - Fall 2010 Slide 1-3

  4. Cost of Fraud • Association of Certified Fraud Examiners (ACFE) • Close to $1.3 trillion annually • Over $13 per employee per day • Over 6% of revenue…straight to the bottom line FORENSIC ACCOUNTING - BA124 - Fall 2010 Slide 1-4

  5. How Does Fraud Impact You? • Financially • Reputation of your firm • Opportunity cost FORENSIC ACCOUNTING - BA124 - Fall 2010 Slide 1-5

  6. Here’s What Happens... • It is a dollar for dollar impact on net income • Dollars that have a multiplier effect on revenue in order to generate new profits FORENSIC ACCOUNTING - BA124 - Fall 2010 Slide 1-6

  7. Defining Fraud • A representation • About a material point, • Which is false, • And intentionally or recklessly so, • Which is believed • And acted upon by the victim • To the victim’s damage • Let examine each highlighted term SLIMBAD FORENSIC ACCOUNTING - BA124 - Fall 2010 Slide 1-7

  8. What Drives Fraud • Consider the Ponzi Fraud of the early 20th Century • See www.mark-knutson.com • Primary age of fraudsters--36-45 yrs. • Key drivers • Confidence earned • Pressures • Greed FORENSIC ACCOUNTING - BA124 - Fall 2010 Slide 1-8

  9. Classifications of Fraud • Fraud versus an organization • Occupational fraud • Fraud on behalf of an organization FORENSIC ACCOUNTING - BA124 - Fall 2010 Slide 1-9

  10. Occupational Fraud • Clandestine • Violates fiduciary interest • Direct or indirect financial benefit • Damages the organization FORENSIC ACCOUNTING - BA124 - Fall 2010 Slide 1-10

  11. Fraud on Behalf of an Organization • Most common…fraudulent financial reporting FORENSIC ACCOUNTING - BA124 - Fall 2010 Slide 1-11

  12. A More Detailed Classification List • Occupational fraud…embezzlement • Management fraud • Investment scams • Vendor fraud • Customer fraud • Know the table on WSA pg. 11 FORENSIC ACCOUNTING - BA124 - Fall 2010 Slide 1-12

  13. Examples... • Embezzlement: Liahona Construction • Management: World-com • Investment: Ponzi • Vendor: Halliburton; USF athlete in the 1980s • Customer: Florida State football player and department store FORENSIC ACCOUNTING - BA124 - Fall 2010 Slide 1-13

  14. Prosecution • Criminal law for public offenses • Bribery laws • Anti Kickback Act of 1986 • Mail Fraud statutes • Bank Fraud statutes • RICO and FCPA • IRS and tax evasion • Civil law for violations of private rights • Note the comparative table on p. 15 FORENSIC ACCOUNTING - BA124 - Fall 2010 Slide 1-14

  15. Fraud Related Careers • Government • FBI, Postal Inspectors, IRS • Public accounting • Forensic accountants • Corporation • Internal auditors • Consulting • Lawyers • Expert witnesses FORENSIC ACCOUNTING - BA124 - Fall 2010 Slide 1-15

More Related