Case Studies and Fraud Schemes

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This section includes examples of fraud schemes and their methods of detection.

A Framework for Detecting Financial Statement Fraud

Using this four-step process you will identify financial statement fraud exposures, understand the kind of symptoms the fraud exposures exhibit, learn to use appropriate analyses to find relevant symptoms, as well as determine whether the symptoms actually relate to a fraud scheme or to another problem. Learn More>>

A Young CPA Stands His Ground

Manuel Gonzales, a young CPA, has to decide how far to push his opinions regarding proper cut offs for shipments—with little support from the management team for his conservative views. Learn More>>

Rising Sun Construction Company

When Jerry Blank, the Rising Sun Construction's business development officer, begins a successful networking effort in

Japan

, questions are raised about whether his efforts are ethically—and legally—sound. Learn More>>

Strike Two: You're Out—Again!

A CFO loses her job because she uncovers problems with revenue recognition. In her next job—with a promising Internet company—she believes her problems are over. Then she begins to raise questions about the new company's revenue figures. Learn More>>

Other Fraud Schemes

FVS Section Member

This article describes two fraud schemes that have recently experienced a high degree of incidence. Additionally, it also describes other common fraud schemes that have been around for quite a long time. Learn More >>

Above the Law: An Executive's Double Standard

The executive vice president of Brazos Manufacturing couldn't wait to charge out another bottle of wine or treat his family to another fancy dinner on the company's tab . . . and the ethics officer didn't seem to mind. What's the best course of action for the controller who uncovers this EVP's actions? Learn More>>

Manager Persuades Employees to Unknowingly Allow Embezzlement

Although computer systems and networks come with built-in controls, such as segregation of duties, they can never replace honest management. In this case, a manager under financial pressure used his influence over his employees to bypass the system controls. Learn More>>

Case Study: Profitability Driven Lower

FVS Section Member

Decreasing raw material costs should have a positive impact on the gross margin line of BF Oil. However, the Director of Internal Audit, Joe Knapp, notices that this is not the case for this subsidiary of AMM Energy. Line item analysis shows where the added costs have been incurred, but why? Learn More>>

Loose Controls at an NPO

Senior accountant George Shaw finds evidence of poor internal controls and, ultimately, fraud, at a family of not-for-profits. In order to solve all of the problems with the organization's books, he ends up joining the staff. Learn More>>