1 / 26

FRAUD EXAMINATION ALBRECHT, ALBRECHT, & ALBRECHT

FRAUD EXAMINATION ALBRECHT, ALBRECHT, & ALBRECHT. Proactive Approaches to Detecting Fraud. CHAPTER 6. Learning Objectives. Explain the importance of proactive fraud detection. Describe the role of commercial data-mining software plays in detection.

shinshaw
Download Presentation

FRAUD EXAMINATION ALBRECHT, ALBRECHT, & ALBRECHT

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. FRAUD EXAMINATIONALBRECHT, ALBRECHT, & ALBRECHT Proactive Approaches to Detecting Fraud CHAPTER 6

  2. Learning Objectives • Explain the importance of proactive fraud detection. • Describe the role of commercial data-mining software plays in detection. • List the advantages and disadvantages of data mining and digital analysis. • Recognize Benford’s Law.

  3. Learning Objectives • Understand inductive fraud detection. • Identify how fraud is detected by analyzing financial statements.

  4. How is the Case of Mr. Hamanaka Typical of Most Frauds?

  5. Match Terms and Definitions. Inductive fraud detection Determining the types of fraud that can occur then query to see if they exist Proactively searching for fraud without determining the type of fraud to look for Deductive fraud detection A mathematical algorithm that predicts the percentage a digit will occur Commercial data-mining software Commercial software used to detect patterns in data Benford’s Law

  6. Detection Investigation Differentiate Between Detecting & Investigating Fraud.

  7. Explain Data-Mining as a Means of Detecting Fraud.

  8. Review How Benford’s Law Works.

  9. List Disadvantages of Benford’s Law?

  10. What is the 5 step Process for Inductive Fraud Detection?

  11. Compare the 3 Approaches.

  12. Compare the 3 Approaches.

  13. Compare the 3 Approaches(cont’d)

  14. Summarize the Process Which Results in Financial Statements.

  15. What Effect Does the Size of the Fraud Have on the F/S?

  16. If Sales Increase Then Explain How Revenue Affects the Company’s Accounts.

  17. How Can You Convert Balance Sheets & Income Statements to Change Statements?

  18. Match Ratio to Name. CA – Inventory Average A/R Current Current Assets Current Liabilities Quick Test Sales Average A/R A/R Turnover 365 Days A/R Turnover Days in Receivables

  19. Match Ratio to Name. Bad Debt Expense Average A/R Receivables % Bad Debt % 365 Days Inventory Turnover Inventory Turnover Cost of Goods Sold Average A/R Accounts/Receivable Total Assets Days in Inventory

  20. Match Ratio to Name. Cost of Goods Sold Percent Cost of Goods Sold Total Sales Inventory Percent Sales Returns Total Sales Property, Plant & Equipment Percent Inventory Total Assets Sales Ave. Property Plant & Equipment Sales Return Percent

  21. Match Ratio to Name. Total Liabilities Total Assets Debt to Equity Net Income # Share of Stock Outstanding Debt Percentage Profit Margin Total Liabilities Total Equity Days in Receivables Net Income Net Sales

  22. Describe How to Perform Vertical Analysis on:

  23. Describe How to Perform Horizontal Analysis on:

  24. What Questions Should Asked When Using a Statement of Cash Flows to Detect Fraud?

  25. Statement of Cash Flows Cash Flows Cash Balance Cash Flows

  26. Discuss the Use of Software for Detecting & Identifying Fraudsters.

More Related