Professional Documents
Culture Documents
Learning Objectives
Identify fraudulent schemes that
understate liabilities.
Discuss the understatement of
liabilities fraud.
Describe fraudulent schemes that
overstate assets.
Understand the overstatement of
assets fraud.
Learning Objectives
List fraudulent schemes that
inadequately disclose financial
statement information.
Explain the inadequate disclosure
fraud.
Understatement of Liabilities
Fraud
Understatement of Liabilities
Fraud
Understatement of Liabilities
Fraud
Understatement of Liabilities
Fraud
Understatement of Liabilities
Fraud
Underrecording Future
Obligations
Understatement of Liabilities
Fraud
Not Recording or Underrecording
10
Understatement of Liabilities
Fraud
Omission of Contingent
Liabilities
If likelihood of loss is reasonably
possible, the contingent liability
should be disclosed in the
footnotes to the financial
statements.
11
Understatement of Liabilities
Fraud
12
Understatement of Liabilities
Fraud
Unearned Revenues:
Payables or other accrued liabilities
are low
Income that is too smooth
13
Understatement of Liabilities
Fraud
Abnormal Analytical Symptoms
Recognition of Unearned Revenues:
Unearned liability balances appear too low
and revenue accounts appear too high
Under- or nonrecording of
services/warranty:
Balances in warranty, repurchases, or
deposits accounts appear too low
Understatement of Liabilities
Fraud
15
Understatement of Liabilities
Fraud
Accounting or Documentary
Symptoms
16
17
19
21
22
23
25