From the Inside Flap
In 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.
Now fully updated and filled with up-to-date case examples, Financial Statement Fraud, Second Edition not only explains in understandable language how financial schemes are committed, it also offers valuable advice on how to prevent and detect them. The Second Edition 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.
The Second Edition continues to focus on the importance of corporate governance in preventing and detecting financial statement fraud, with the latest coverage on:
Examinations of real-world frauds and practical tools and techniques for carrying out their antifraud responsibilities
Initiatives affecting the financial reporting and corporate governance and auditing functions, such as SOX- and SEC-related implementation rules
Recommendations from the SEC Advisory Committee to reduce the complexity of the financial reporting process and improve the quality of financial reports
Emerging financial reporting and auditing initiatives, including movement toward IFRS and IAAS and the use of the XBRL reporting platform
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
Straightforward and clear, this superior reference provides you with an up-to-date understanding of financial statement fraud, including its deterr-ence, prevention, and detection. Its uncomplicated language illustrates theoretical and practical con-cepts and procedures to aid comprehension of complex financial reporting processes and expos-ure to a variety of fraudulent activities.
From the Back Cover
"
Financial Statement Fraud: Prevention and Detection, Second Edition is a valuable reference guide for fraud examiners, audit committees, management, and regulators; and for one other important cog in this wheel: the investors who stand to lose everything."
—Joseph Wells, founder and Chairman, Association of Certified Fraud Examiners
Exceptionally well researched and fully revised, Financial Statement Fraud, Second Edition provides thorough coverage of the nature and extent of financial reporting fraud. Authors and accounting experts Zabihollah Rezaee and Richard Riley describe the most successful methods for preventing, detecting, and controlling incidents of financial reporting fraud and offer reliable guidance from standard-setting organizations such as the PCAOB, AICPA, and the SEC. Real-life case studies of companies guilty of such fraud—and a discussion of the consequences—help illustrate important concepts.
Thoroughly updated for today's marketplace, Financial Statement Fraud, Second Edition contains sample reports, examples, and documents that promote a realistic understanding of financial statement fraud and the investigation of fraudulent financial reporting allegations centered on the elements of fraud: the act, the concealment, and the conversion or benefit to the perpetrator.
Whether you are a manager, board of director, executive, or auditor, the Second Edition updates you on all the important issues regarding financial statement fraud, including:
- Auditing standards issued by the PCAOB, technological advances, and globalization
- SOX- and SEC-related implementation rules
- The movement toward IFRS and IAAS and the use of the XBRL reporting platform
- The trend toward reducing the complexity of the financial reporting process
- Corporate governance reforms in the post-SOX era
- Antifraud policies, practices, and education for all players in the financial reporting process
With practical tools and techniques for carrying out antifraud responsibilities, Financial Statement Fraud, Second Edition is the only resource you will need to identify early warning signs of financial misconduct and a reliable, practical guide to preventing it.
