Fraud Detection FRAUD EXAMINATION ALBRECHT & ALBRECHT Proactive Approaches to Detecting Fraud CHAPTER 6

Fraud Detection What is typical of most frauds, as in the case of Mr. Hamanaka?

Fraud Detection Differentiate Between Detecting & Investigating Fraud DetectionInvestigation

Fraud Detection Explain Data-Mining as a Means of Detecting Fraud

Fraud Detection Review How Benford’s Law Works

Fraud Detection What are some disadvantages of Benford’s Law?

Fraud Detection What is the 5 step Process for Inductive Fraud Detection

Fraud Detection Compare the 3 Approaches

Fraud Detection Compare the 3 Approaches

Fraud Detection Compare the 3 Approaches

Fraud Detection Summarize the Process Which Results in Financial Statements

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

Fraud Detection Please Explain Who Revenue Affects the Company’s Accounts If Sales Increase Then

Fraud Detection How can you convert balance sheets & income statements to change statements?

Fraud Detection Match Ratio to Name Indicate the Type of Ration Current CA – Inventory Average A/R CA CL Sales Average A/R 365 A/R Turnover Days in Receivables Quick Test

Fraud Detection Match Ratio to Name Indicate the Type of Ration Receivables % Inventory Turnover Days in Inventory Bad Debt % Bad Debt Expense Average A/R 365 Inventory Turnover Cost of Goods Sold Average A/R A/R Total Assets

Fraud Detection Match Ratio to Name Indicate the Type of Ration Cost of Goods Sold % Property, Plant & Equipment % Sales Return % Inventory % Cost of Goods Sold Total Sales Sales Returns Total Sales Inventory Total Assets Sales Ave. Property Plant & Equipment

Fraud Detection Match Ratio to Name Indicate the Type of Ration Debt to Equity Total Liabilities Total Assets Net Income # Share of Stock Outstanding Total Liabilities Total Equity Net Income Net Sales Profit Margin Days in Receivables Debt %

Fraud Detection Describe How to Perform Vertical Analysis on

Fraud Detection Describe How to Perform Horizonal Analysis on

Fraud Detection What question should be the focus when using a Statement of Cash Flows to detect fraud?

Fraud Detection Discuss Using Software for Detecting & Identifying Fraudsters?