Audit Fraud Detection: Red Flags and Risk Areas in Financial Reporting

Upon successful completion of this course, participants will be able to:

• Identify red flags in financial statements that suggest potential misstatements or fraud
• Recognize common issues in revenue recognition practices that could indicate improper reporting
• Distinguish between normal financial reporting practices and warning signs of manipulation
• Recognize behavioral red flags that may indicate fraudulent or unethical conduct
• Identify management-related risks in estimates and representations that could affect audit outcomes
• Determine when changes in management behavior require further investigation
• Identify weaknessesin internal controls that may expose the organization to risk
• Select the appropriate response when suspicious or incomplete audit evidenceis found
• Distinguish between valid and questionable audit evidence during the audit process
• Recognize red flags in complianceaudits that suggest potential violations or regulatory risks
• Identify cyber security risks and indicators of inadequate protection measures
• Determine when going concern issues require further assessment or disclosure
• Identify common methods of manipulating revenue and earnings in financial statements
• Recognize indicators of inflating earnings with non-recurring items and overstating deferred revenue
• Distinguish between legitimate and fraudulent journal entries
• Recognize indicators of backdating transactions and how they can impact financial reporting
• Identify fraudulentactivities that involve understating expenses and liabilities in financial statements
• Recognize common schemes for misclassifying financial statement items and manipulating reserves
• Distinguish between legitimate and fraudulent lease classifications under accounting standards
• Identify fraudschemes that involve overstating assets and manipulating equity
• Recognize fraudindicators related to depreciation, amortization, and stock option accounting
• Differentiate between legitimate and fraudulent related party transactions
• Identify indicators of misleading disclosures and misreporting of foreign currencytransactions
• Recognize red flags indicating failure to disclose contingent liabilities
• Distinguish between legitimate and fraudulent consolidation practices