{"product_id":"financial-statement-fraud-isbn-9780470455708","title":"Financial Statement Fraud","description":"\u003cp\u003ePractical examples, sample reports, best practices and recommendations to help you deter, detect, and prevent financial statement fraud\u003c\/p\u003e \u003cp\u003eFinancial statement fraud (FSF) continues to be a major challenge for organizations worldwide. \u003ci\u003eFinancial Statement Fraud: Prevention and Detection, Second Edition\u003c\/i\u003e is a superior reference providing you with an up-to-date understanding of financial statement fraud, including its deterrence, prevention, and early detection.\u003c\/p\u003e \u003cp\u003eYou will find\u003cbr\u003e \u003c\/p\u003e \u003cul\u003e \u003cli\u003eA clear description of roles and responsibilities of all those involved in corporate governance and the financial reporting process to improve the quality, reliability and transparency of financial information.\u003c\/li\u003e \u003cli\u003eSample reports, examples, and documents that promote a real-world understanding of incentives, opportunities, and rationalizations\u003c\/li\u003e \u003cli\u003eEmerging corporate governance reforms in the post-SOX era, including provisions of the SOX Act, global regulations and best practices, ethical considerations, and corporate governance principles\u003c\/li\u003e \u003cli\u003ePractical examples and real-world \"how did this happen\" discussions that provide valuable insight for corporate directors and executives, auditors, managers, supervisory personnel and other professionals saddled with anti-fraud responsibilities\u003c\/li\u003e \u003cli\u003eExpert advice from the author of \u003ci\u003eCorporate Governance and Ethics\u003c\/i\u003e and coauthor of the forthcoming Wiley textbook, \u003ci\u003eWhite Collar Crime, Fraud Examination and Financial Forensics\u003c\/i\u003e\n\u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003e\u003ci\u003eFinancial Statement Fraud, Second Edition c\u003c\/i\u003eontains recommendations from the SEC Advisory Committee to reduce the complexity of the financial reporting process and improving the quality of financial reports.\u003c\/p\u003e \u003cp\u003eForeword xi\u003c\/p\u003e \u003cp\u003ePreface xiii\u003c\/p\u003e \u003cp\u003eAcknowledgments xix\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart One: Financial Reporting and Financial Statement Fraud 1\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003e1 Financial Statement Fraud Defined 3\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eWill History Repeat Itself? 3\u003c\/p\u003e \u003cp\u003eA Closer Look 4\u003c\/p\u003e \u003cp\u003eDefinition of Financial Statement Fraud 4\u003c\/p\u003e \u003cp\u003eNature of Financial Statement Fraud 8\u003c\/p\u003e \u003cp\u003eHigh-Impact Fraud Cases 11\u003c\/p\u003e \u003cp\u003eCost of Financial Statement Fraud 13\u003c\/p\u003e \u003cp\u003eFraud Studies and Regulatory Responses 16\u003c\/p\u003e \u003cp\u003eAntifraud Programs 19\u003c\/p\u003e \u003cp\u003eOccurrence, Prevention, and Detection 22\u003c\/p\u003e \u003cp\u003eLessons Learned and Applications for Practice 25\u003c\/p\u003e \u003cp\u003eNotes 28\u003c\/p\u003e \u003cp\u003e\u003cb\u003e2 Financial Reporting Structure 31\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 31\u003c\/p\u003e \u003cp\u003eFinancial Reporting System 31\u003c\/p\u003e \u003cp\u003eImportance of Financial Information 33\u003c\/p\u003e \u003cp\u003eAnnual Financial Reporting Requirements 38\u003c\/p\u003e \u003cp\u003eHigh-Quality Financial Reports 39\u003c\/p\u003e \u003cp\u003eSix-Legged Stool of the Financial Reporting Process 41\u003c\/p\u003e \u003cp\u003eCorporate Financial Reports 42\u003c\/p\u003e \u003cp\u003eCorporate Reporting Challenges 44\u003c\/p\u003e \u003cp\u003eFinancial Restatements 45\u003c\/p\u003e \u003cp\u003eFair Value 46\u003c\/p\u003e \u003cp\u003eStock Options Accounting 46\u003c\/p\u003e \u003cp\u003eXBRL-Generated Financial Reports 47\u003c\/p\u003e \u003cp\u003eAntifraud Applications for Practice 48\u003c\/p\u003e \u003cp\u003eNotes 52\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart Two: Financial Statement Fraud Profile, Taxonomy, and Schemes 55\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003e3 Cooking the Books Equals Fraud 57\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 57\u003c\/p\u003e \u003cp\u003eWhy Does Financial Statement Fraud Occur? 57\u003c\/p\u003e \u003cp\u003eProfile of Financial Statement Fraud 58\u003c\/p\u003e \u003cp\u003eWaste Management, Inc.: Financial Statement Fraud Analysis 70\u003c\/p\u003e \u003cp\u003eAntifraud Applications for Practice 72\u003c\/p\u003e \u003cp\u003eNotes 76\u003c\/p\u003e \u003cp\u003e\u003cb\u003e4 Realization, Prevention, and Detection 78\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 78\u003c\/p\u003e \u003cp\u003eRealization 78\u003c\/p\u003e \u003cp\u003eThe 3Cs Model 79\u003c\/p\u003e \u003cp\u003eFinancial Statement Fraud Prevention 84\u003c\/p\u003e \u003cp\u003eFinancial Statement Fraud Detection 86\u003c\/p\u003e \u003cp\u003eCorrection Procedures 87\u003c\/p\u003e \u003cp\u003ePrevention, Detection, and Correction Strategies 87\u003c\/p\u003e \u003cp\u003eAntifraud Applications for Practice 89\u003c\/p\u003e \u003cp\u003eNotes 96\u003c\/p\u003e \u003cp\u003e\u003cb\u003e5 Taxonomy and Schemes 97\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 97\u003c\/p\u003e \u003cp\u003eSymptoms of Financial Statement Fraud 97\u003c\/p\u003e \u003cp\u003eCommon Fraud Schemes 101\u003c\/p\u003e \u003cp\u003eCommon Revenue Fraud Schemes 103\u003c\/p\u003e \u003cp\u003eFinancial Statement Fraud Red Flags 105\u003c\/p\u003e \u003cp\u003eWhistle-blower Regulations 112\u003c\/p\u003e \u003cp\u003eAntifraud Applications for Practice 114\u003c\/p\u003e \u003cp\u003eNotes 117\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart Three: Corporate Governance and Its Role in Preventing and Detecting Financial Statement Fraud 119\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003e6 Role of Corporate Governance 121\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 121\u003c\/p\u003e \u003cp\u003eDefinition of Corporate Governance 122\u003c\/p\u003e \u003cp\u003eRole of Corporate Governance 122\u003c\/p\u003e \u003cp\u003eCorporate Governance Structure 125\u003c\/p\u003e \u003cp\u003eCharacteristics of Corporate Governance 127\u003c\/p\u003e \u003cp\u003eCorporate Governance Functions 128\u003c\/p\u003e \u003cp\u003eGlobal Corporate Governance 132\u003c\/p\u003e \u003cp\u003eAntifraud Applications for Practice 134\u003c\/p\u003e \u003cp\u003eNotes 136\u003c\/p\u003e \u003cp\u003e\u003cb\u003e7 Board of Directors’ Oversight Responsibility 138\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 138\u003c\/p\u003e \u003cp\u003eRole of the Board of Directors 138\u003c\/p\u003e \u003cp\u003eComposition of the Board of Directors 139\u003c\/p\u003e \u003cp\u003eFunctions of the Board of Directors 142\u003c\/p\u003e \u003cp\u003eAttributes of Boards of Directors 145\u003c\/p\u003e \u003cp\u003eAntifraud Applications for Practice 151\u003c\/p\u003e \u003cp\u003eProtocol: A Plan for Reaction to Allegations of Misconduct 152\u003c\/p\u003e \u003cp\u003eNotes 155\u003c\/p\u003e \u003cp\u003e\u003cb\u003e8 Audit Committees and Corporate Governance 157\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 157\u003c\/p\u003e \u003cp\u003eAudit Committee 157\u003c\/p\u003e \u003cp\u003eAudit Committee Attributes 166\u003c\/p\u003e \u003cp\u003eAudit Committee Roles and Responsibilities 168\u003c\/p\u003e \u003cp\u003eAudit Committee Charters 172\u003c\/p\u003e \u003cp\u003eChairperson of Audit Committees 173\u003c\/p\u003e \u003cp\u003eAudit Committee Report 173\u003c\/p\u003e \u003cp\u003eAudit Committee Roles in Preventing and Detecting Financial Statement Fraud 177\u003c\/p\u003e \u003cp\u003eAntifraud Applications for Practice 178\u003c\/p\u003e \u003cp\u003eNotes 183\u003c\/p\u003e \u003cp\u003e\u003cb\u003e9 Management Responsibility 184\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 184\u003c\/p\u003e \u003cp\u003eManagement Financial Reporting Responsibilities 184\u003c\/p\u003e \u003cp\u003eManagement’s Role in Financial Statement Fraud Prevention and Protection 190\u003c\/p\u003e \u003cp\u003eManagement Motives and Incentives 191\u003c\/p\u003e \u003cp\u003eManagement Override of Internal Control 192\u003c\/p\u003e \u003cp\u003eGamesmanship 194\u003c\/p\u003e \u003cp\u003eRisk Management 196\u003c\/p\u003e \u003cp\u003eAntifraud Applications for Practice 200\u003c\/p\u003e \u003cp\u003eNotes 204\u003c\/p\u003e \u003cp\u003e\u003cb\u003e10 Role of the Internal Auditor 206\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 206\u003c\/p\u003e \u003cp\u003eInternal Auditors and Corporate Governance 206\u003c\/p\u003e \u003cp\u003eInternal Auditors’ Responsibilities 208\u003c\/p\u003e \u003cp\u003eInternal Audit Fraud Standards 212\u003c\/p\u003e \u003cp\u003eEfficacy of Internal Audit in Financial Statement\u003c\/p\u003e \u003cp\u003eFraud Prevention and Detection 214\u003c\/p\u003e \u003cp\u003eCooperation between External and Internal Audit 215\u003c\/p\u003e \u003cp\u003eInternal Audits and the Audit Committee 217\u003c\/p\u003e \u003cp\u003eInternal Control 218\u003c\/p\u003e \u003cp\u003eAntifraud Applications for Practice 225\u003c\/p\u003e \u003cp\u003eNotes 227\u003c\/p\u003e \u003cp\u003e\u003cb\u003e11 Role of External Auditors 229\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 229\u003c\/p\u003e \u003cp\u003eIndependent Audit of Financial Statements 229\u003c\/p\u003e \u003cp\u003eIndependent Auditor and Financial Statement Fraud 234\u003c\/p\u003e \u003cp\u003eIndependent Audit and Internal Control 237\u003c\/p\u003e \u003cp\u003eReport on Internal Controls 238\u003c\/p\u003e \u003cp\u003eFraud Detection Audit Procedures 240\u003c\/p\u003e \u003cp\u003eMateriality Guidance 246\u003c\/p\u003e \u003cp\u003eRisk Factors of Financial Statement Fraud 249\u003c\/p\u003e \u003cp\u003eCommunication of Fraud 253\u003c\/p\u003e \u003cp\u003eAntifraud Applications for Practice 254\u003c\/p\u003e \u003cp\u003eNotes 256\u003c\/p\u003e \u003cp\u003e\u003cb\u003e12 Governing Bodies 258\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 258\u003c\/p\u003e \u003cp\u003eRole of Regulation in Corporate Governance 259\u003c\/p\u003e \u003cp\u003eSarbanes-Oxley Act of 2002 260\u003c\/p\u003e \u003cp\u003eSecurities and Exchange Commission 263\u003c\/p\u003e \u003cp\u003eSEC’s Regulation Fair Disclosure 267\u003c\/p\u003e \u003cp\u003eFinancial Fraud Detection and Disclosure Act of 1992 268\u003c\/p\u003e \u003cp\u003ePrivate Securities Reform Act of 1995 268\u003c\/p\u003e \u003cp\u003eSEC and Financial Statement Fraud 269\u003c\/p\u003e \u003cp\u003eSEC Fraud Prevention Activities 269\u003c\/p\u003e \u003cp\u003eSEC Fraud Detection Activities 270\u003c\/p\u003e \u003cp\u003eSEC Fraud Enforcement Activities 270\u003c\/p\u003e \u003cp\u003eRole of the Financial Accounting Standards Board 273\u003c\/p\u003e \u003cp\u003eAntifraud Applications for Practice 276\u003c\/p\u003e \u003cp\u003eNotes 279\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart Four: Digital (Computer) Approaches to Fraud and Forensic Accounting 281\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003e13 Fraud in a Digital Environment 283\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 283\u003c\/p\u003e \u003cp\u003eDigital Economy 284\u003c\/p\u003e \u003cp\u003eElectronic Commerce 285\u003c\/p\u003e \u003cp\u003eChanges in Business Environment 288\u003c\/p\u003e \u003cp\u003eElectronic Financial Reporting 292\u003c\/p\u003e \u003cp\u003eAntifraud Applications for Practice 302\u003c\/p\u003e \u003cp\u003eNotes 305\u003c\/p\u003e \u003cp\u003e\u003cb\u003e14 Fraud Examination Practice, Education, and Research 306\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 306\u003c\/p\u003e \u003cp\u003eThe Interrelationship: Auditing, Fraud Examination, and Forensic Accounting 307\u003c\/p\u003e \u003cp\u003eForensic Accounting Practice 308\u003c\/p\u003e \u003cp\u003eFraud Examination 310\u003c\/p\u003e \u003cp\u003eCertification in Financial Forensics 313\u003c\/p\u003e \u003cp\u003eTraining Competent and Ethical Fraud Examiners and Forensic Accountants 313\u003c\/p\u003e \u003cp\u003eFraud Examination and Forensic Accounting Education 315\u003c\/p\u003e \u003cp\u003eRole of Research in a Profession 316\u003c\/p\u003e \u003cp\u003eAntifraud Applications for Practice 318\u003c\/p\u003e \u003cp\u003eNotes 321\u003c\/p\u003e \u003cp\u003eAppendix: Summary of Six Recent Fraud Studies 323\u003c\/p\u003e \u003cp\u003eAbout the Authors 327\u003c\/p\u003e \u003cp\u003eIndex 329\u003c\/p\u003e   \u003cp\u003e\u003cb\u003eZABIHOLLAH REZAEE,\u003c\/b\u003e P\u003csmall\u003eH\u003c\/small\u003eD, CPA, CFE, CIA, CGFM, CMA, is the Thompson-Hill Chair of Excellence and Professor of Accountancy at the University of Memphis and served a two-year term on the Standing Advisory Group (SAG) of the Public Company Accounting Oversight Board (PCAOB). He has published over 175 articles in a variety of accounting and business journals and six books, including \u003ci\u003eCorporate Governance and Ethics\u003c\/i\u003e (Wiley). \t \u003c\/p\u003e\u003cp\u003e\u003cb\u003eRICHARD RILEY,\u003c\/b\u003e P\u003csmall\u003eH\u003c\/small\u003eD, CPA, CFE, is a Louis F. Tanner Distinguished Professor of Public Accounting at West Virginia University. He was recognized as the 2008 ACFE Educator of the Year and by the American Accounting Association in 2009 for his innovations in accounting education. He is a forensic accountant and a Certified Fraud Examiner who has developed and implemented educational programs for the United States National Institute of Justice and the Internal Revenue Service. In addition to his distinguished academic career, he was employed as a senior accountant in the accounting firm of Deloitte \u0026amp; Touche.    \u003c\/p\u003e\u003cp\u003eIn this new century, financial statement fraud has increasingly become a serious problem for business, government, and investors. In fact, the issue threatens to undermine the confidence of capital markets and corporate leaders. Auditors, in particular, have been hit hard for their seeming inability to find fraud on a massive scale. Monetary damages and settlement judgments in the hundreds of millions of dollars against auditing firms have become commonplace, and one of the largest auditing firms, Arthur Andersen, has completely disappeared. \t \u003c\/p\u003e\u003cp\u003eNow fully updated and filled with up-to-date case examples, \u003ci\u003eFinancial Statement Fraud, Second Edition\u003c\/i\u003e not only explains in understandable language how financial schemes are committed, it also offers valuable advice on how to prevent and detect them. The \u003ci\u003eSecond Edition\u003c\/i\u003e is written specifically with publicly held companies in mind—and packed with guidance from standard-setting organizations such as the PCAOB, AICPA, and the SEC, providing theoretical and practical advice ideally suited for you—whether you are a manager or an auditor—to help you recognize and stop financial statement fraud. \t \u003c\/p\u003e\u003cp\u003eThe \u003ci\u003eSecond Edition\u003c\/i\u003e continues to focus on the importance of corporate governance in preventing and detecting financial statement fraud, with the latest coverage on: \u003c\/p\u003e\u003cul\u003e \u003cli\u003eExaminations of real-world frauds and practical tools and techniques for carrying out their antifraud responsibilities\u003c\/li\u003e \u003cli\u003eInitiatives affecting the financial reporting and corporate governance and auditing functions, such as SOX- and SEC-related implementation rules\u003c\/li\u003e \u003cli\u003eRecommendations from the SEC Advisory Committee to reduce the complexity of the financial reporting process and improve the quality of financial reports\u003c\/li\u003e \u003cli\u003eEmerging financial reporting and auditing initiatives, including movement toward IFRS and IAAS and the use of the XBRL reporting platform\u003c\/li\u003e \u003cli\u003eCorporate governance reforms in the post-SOX era, including provisions of the SOX Act, global regulations and best practices, ethical considerations, and corporate governance principles\u003c\/li\u003e \u003c\/ul\u003e \t \u003cp\u003eStraightforward and clear, this superior reference provides you with an up-to-date understanding of financial statement fraud, including its deterrence, prevention, and detection. Its uncomplicated language illustrates theoretical and practical concepts and procedures to aid comprehension of complex financial reporting processes and exposure to a variety of fraudulent activities.\u003c\/p\u003e","brand":"Wiley","offers":[{"title":"Default Title","offer_id":47989212315877,"sku":"NP9780470455708","price":75.0,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9780470455708.jpg?v=1761783228","url":"https:\/\/k12savings.com\/products\/financial-statement-fraud-isbn-9780470455708","provider":"K12savings","version":"1.0","type":"link"}