Who’s the BOSS? Analysis of a Fraud

2021 ◽  
Author(s):  
Eileen Z. Taylor
Keyword(s):  
Student Engagement ◽  
Real World ◽  
Financial Statement ◽  
Accounting Students ◽  
Work Experiences ◽  
Red Flags ◽  
Financial Statement Fraud ◽  
Financial Statement Analysis ◽  
News Stories ◽  
Public Company

Based on a real world, public company, $30 million embezzlement and financial statement fraud, this case helps students recognize red flags, analyze a situation using the fraud diamond, perform research and reflect on their own work experiences to support a belief, and conduct financial statement analysis. Its variety of activities are suitable for both undergraduate and graduate accounting students, and in-class and out of class learning. Because it is based on an actual fraud, it includes an epilogue with links to news stories and court documents, which improves student engagement with the material.

Interstate Business College: A Case Study in Fraud Examination

2004 ◽  
Vol 19 (4) ◽  
pp. 505-527 ◽  
Author(s):  
Bonita K. Peterson ◽  
Thomas A. Buckhoff
Keyword(s):  
Career Path ◽  
Financial Statement ◽  
Accounting Students ◽  
Top Management ◽  
Financial Statement Analysis ◽  
Public Records ◽  
Management Fraud ◽  
Business College

This case is based on an actual fraud that occurred and provides you with an opportunity to develop fraud examination skills, which include document examination, searching public records, financial statement analysis, and communicating the results of your work. Such skills benefit all accounting students regardless of the career path they may choose (e.g., a fraud investigator, an auditor, a consultant, a tax accountant). This case also: (1) exemplifies the complexity often found in fraud cases, and (2) illustrates how fraud examinations differ from financial statement audits. While some of the names of the parties involved have been changed, no facts in the case have been altered. Interstate Business College (IBC), founded in 1912, collapsed in the wake of allegations of top management fraud. The allegations became public when 23 former students filed a lawsuit against the director and owner of IBC, alleging misappropriation of student funds. You will assume the role of the fraud investigator hired by their attorney to determine if there is evidence to support their claim. Upon completion of the case, you will have a sense of the amount of documents, detail, and work involved when resolving fraud allegations.

Put Your Best Text Forward: Introducing Textual Analysis into the Accounting Classroom

2021 ◽  
Author(s):  
Ingrid Fisher ◽  
Mark Hughes ◽  
Diane J. Janvrin
Keyword(s):  
Information Systems ◽  
Data Analytics ◽  
Textual Analysis ◽  
Accounting Information ◽  
Digital Data ◽  
Financial Statement ◽  
Accounting Students ◽  
Accounting Profession ◽  
Financial Statement Analysis ◽  
Accounting Information Systems

The use of textual analysis methods in the accounting profession has grown markedly in recent years. Accounting professionals as well as business and accounting accreditors have called for accounting students to acquire an increased depth and breadth of knowledge of digital data analytics. This case enables accounting instructors, with no previous background or experience in textual analysis, to introduce students to the use of textual analysis in accounting and allows students to conduct simple analyses using freely available software and documents retrieved from publicly available SEC filings. This case is designed for auditing, accounting information systems, fraud examination, and financial statement analysis courses, but it can be used in any accounting course where the content of relevant documents is subject to examination.

Investor Perceptions About Financial Statement Fraud and Their Use of Red Flags

2012 ◽  
Author(s):  
Joseph F. Brazel ◽  
Keith L. Jones ◽  
Jane M. Thayer ◽  
Rick C. Warne
Keyword(s):  
Financial Statement ◽  
Red Flags ◽  
Financial Statement Fraud

scholarly journals Company financial health: Financial statement users’ and compilers’ perceptions

2014 ◽  
Vol 7 (3) ◽  
pp. 819-836
Author(s):  
Elda Du Toit ◽  
Frans Vermaak
Keyword(s):  
South African ◽  
Financial Statements ◽  
Financial Statement ◽  
Financial Health ◽  
Red Flags ◽  
Financial Statement Analysis ◽  
Structured Questionnaire

Some prior studies have investigated using analyses of financial statements to reveal companies’ financial health, but the usefulness of using such analyses to reveal the financial health of companies and possible presence of accounting irregularities in South African companies needed further investigation. This study examines whether users and compilers of financial statements believe that analysing financial statements can provide clear indications of companies’ financial health. The study was conducted by means of a structured questionnaire based on statements made by experts in the field of accounting and financial statement analysis. The results from 237 respondents show that the compilers and users of financial statements are convinced of the usefulness of financial statement analysis in evaluations of companies’ financial health. This suggests that close scrutiny of a company’s financial statements, with an attitude of scepticism, has the potential to reveal possible irregularities and raise red flags about unhealthy company practices.

Understanding investor perceptions of financial statement fraud and their use of red flags: evidence from the field

2015 ◽  
Vol 20 (4) ◽  
pp. 1373-1406 ◽  
Author(s):  
Joseph F. Brazel ◽  
Keith L. Jones ◽  
Jane Thayer ◽  
Rick C. Warne
Keyword(s):  
Financial Statement ◽  
Red Flags ◽  
Financial Statement Fraud

scholarly journals CORRELATION OF FINANCIAL STATEMENT COMPONENTS IN DETECTING FINANCIAL FRAUD

2016 ◽  
Vol 1 (2) ◽  
pp. 275
Author(s):  
Handayani Handayani ◽  
Tarjo Tarjo ◽  
Yuni Rimawati
Keyword(s):  
Capital Market ◽  
Sampling Technique ◽  
Financial Statements ◽  
Cash Flows ◽  
Financial Statement ◽  
Financial Fraud ◽  
Spearman Correlation ◽  
Red Flags ◽  
Financial Statement Fraud ◽  
Spearman Correlation Test

The purpose of this study is to determine the absence of correlation offinancial statement components as red flags in detecting financial statement fraud. The sampling in this study is done using purposive sampling technique. There are two categories of companies used as the study sample:fraud companies and non-fraud companies. Fraud companies are the companies that get sanction from Capital Market Supervisory Agency (Bapepam) andFinancial Services Authority (OJK) period 2000-2014, while non-fraud companies are selected with the criteria: having equivalent assets, engaging in the same industry, and using the same financial statements as the financial statements used by the fraud companies. The total samples of this study are 122 companies consisting of 61 fraud companies and 61 non-fraud companies. Spearman correlation test is used to answer the research hypothesis.The conclusions of this study are (1) the absence of correlation between cash flows andearnings can be usedas red flags to detect fraud, (2) the existence of correlation between receivables and revenues cannot be used as red flags to detect fraud, (3) the existence of correlation between allowances for uncollectible accounts and receivable cannot be used as red flags to detect fraud.

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