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More About This Title Detecting Accounting Fraud Before It's Too Late
English
Detect accounting fraud before it’s too late
Accounting fraud is the deliberate manipulation of accounting records in order to make a company's financial performance seem better or worse than it actually is. Accounting scandals often have catastrophic consequences for shareholders and employees. Thus, analysts and auditors must be equipped to detect accounting fraud.
This book is a comprehensive guide to detecting accounting fraud for auditors investigating accounting fraud and analysts/managers seeking to prevent it. A wide variety of warning signs are described, as are several techniques for detecting and addressing fraud.
- Understand the motivations and warning signs behind accounting fraud
- Get to know how accounting fraud is done and how to detect it
- Avoid the losses that often come from accounting fraud
- Benefit from case studies throughout to that help illustrate the author's points
It’s unfortunate that managers, auditors, and analysts must be wary of accounting fraud—but this book equips you with the know-how to detect it before it’s too late.
English
English
Prologue
Introduction
1. Fraud and Accounting Manipulations
1.1. Fraud and Its Effects
1.2. Modifying Companies’ Financial Information
1.3. Calling Things by Their Name: From Creative Accounting to Big Baths
2. Accounting Fraud: An Ancient Practice
2.1. The First Accounting Frauds
2.2. Accounting Frauds Continue with the Double Entry
2.3. The Crash of 1929 and the Obligation to Audit Accounts
2.4. Reinforcement of the Business Law and Auditing After the String of Scandals of 2000
2.5. In 2008, After the Burst of the Housing and Financial Bubble, History Repeats Itself
3. Problems in the Regulation of Financial Information
3.1. How Financial Information Is Generated
3.2. Audit of Accounts: Essential, but Not Infallible
3.3. Analysts and Rating Agencies
3.4. Regulators and the Limitations of Accounting Regulations
3.5. Role of the Media
4. Why Are Accounts Manipulated?
4.1. Motivation, Opportunity, and Rationalization
4.2. The Door to Fraud
5. Legal Accounting Manipulations
5.1. Alternatives, Estimations, and Legal Gaps
5.2. Main Legal Manipulations
5.3. Impact of Legal Manipulations in the Accounts
6. Illegal Accounting Manipulations
6.1. Accounting Crime
6.2. How Are Illegal Manipulations Done?
6.3. Operations Through Tax Havens
6.4. Main Illegal Manipulations
6.5. Main Items Affected by Accounting Fraud
7. Ethical Considerations and Economic Consequences of Manipulations
7.1. Ethical Dimension of Accounting Fraud
7.2. Economic Consequences of Accounting Fraud
7.3. Consequences to Managers and Companies That Manipulate Accounts
7.4. What to Do When a Company Deteriorates
8. Personal Warning Signs
8.1. Moments the Warning Signs Occur
8.2. Warning Signs Before Fraud Occurs
8.3. Warning Signs After Fraud Occurs
8.4. Language of Fraudsters
8.5. Successful Businessmen Who End Up in Jail
9. Organizational Warning Signs and Nonfinancial Indicators
9.1. Warning Signs Before Fraud Occurs
9.2. Warning Signs After Fraud Occurs
9.3. Warning Signs Based on Nonfinancial Indicators
10. Warning Signs in the Accounts
10.1. Audit of Accounts
10.2. Balance Sheet
10.3. Income Statement
10.4. Cash Flow Statement
10.5. Statement of Changes in Equity
10.6. Notes
10.7. Ratios That Anticipate Frauds
10.8. Variations in Accounts That Warn of Frauds Already Produced
10.9. Ratios That Warn of Frauds Already Produced
10.10. Synthetic Index to Detect Manipulating Companies
11. Some Suggestions to Improve the Current Situation
11.1. Reinforce Values and Institute Ethical Codes
11.2. Improve Control Systems in Organizations
11.3. Improve Regulation
11.4. Reinforce Supervision
11.5. Reinforce the Sanctioning Regime
11.6. The Challenge of Providing Relevant Information for Decision-Making
Epilogue
Appendix 1. Criminal Responsibility of Legal Entities and Normative Compliance
Appendix 2. Audit Program for the Identification of Fraud Risks
List of Companies Mentioned in the Book
Index
