Using Analytics to Detect Possible Fraud

Informationen zum Autor PAMELA S. MANTONE, CPA, CFF, CITP, CGMA, CFE, FCPA, is a Senior Assurance Manager at Joseph Decosimo & Company, PLLC, practicing in the areas of audit and attestation with a focus on forensic accounting, fraud examination and audits of financial institutions, nonprofit organizations, publicly traded companies and governments. She provides forensic accounting services, with an emphasis on embezzlement and fraudulent financial information for multiple organizations, as well as consulting services regarding the implementation of fraud prevention and fraud protection internal control systems. Klappentext Detailed tools and techniques for developing efficiency and effectiveness in forensic accountingUsing Analytics to Detect Possible Fraud: Tools and Techniques is a practical overview of the first stage of forensic accounting, providing a common source of analytical techniques used for both efficiency and effectiveness in forensic accounting investigations. The book is written clearly so that those who do not have advanced mathematical skills will be able to understand the analytical tests and use the tests in a forensic accounting setting. It also includes case studies and visual techniques providing practical application of the analytical tests discussed. Shows how to develop both efficiency and effectiveness in forensic accounting Provides information in such a way that non-practitioners can easily understand Written in plain language: advanced mathematical skills are not required Features actual case studies using analytical testsEssential reading for every investor who wants to prevent financial fraud, Using Analytics to Detect Possible Fraud allows practitioners to focus on areas that require further investigative techniques and to unearth deceptive financial reporting before it's too late. Zusammenfassung Suitable for every investor who wants to prevent financial fraud, this title allows practitioners to focus on areas that require further investigative techniques and to unearth deceptive financial reporting before it's too late. It also includes case studies and visual techniques providing practical application of the analytical tests discussed. Inhaltsverzeichnis Preface xi Acknowledgments xv Chapter 1: Overview of the Companies 1 The Four Companies 2 Company 1 2 Company 2 5 Company 3 8 Company 4 10 Summary 16 Chapter 2: The "Norm" and the "Forensic" Preliminary Analytics: Basics Everyone Should Know 19 Liquidity Ratios 20 Working Capital 21 Working Capital Index 21 Working Capital Turnover 22 Current Ratio 22 Case Studies: Liquidity Ratios 22 Profitability Ratios 25 Gross Profit 26 Gross Profit Margin 26 Stock Sales 26 Return on Equity 27 Case Studies: Profitability Ratios 27 Company 1 31 Horizontal Analysis 36 Company 1 36 Company 2 43 Company 3 50 Company 4 61 Vertical Analysis 66 Company 1 66 Company 2 70 Company 3 73 Company 4 79 Summary 79 Chapter 3: The Importance of Cash Flows and Cash Flow Statements 83 Cash Flows and Net Income 85 Company 1 87 Company 2 89 Company 3 92 Company 4 97 Other Cash Flow Techniques 100 Company 1 101 Company 2 104 Company 3 107 Company 4 114 Summary 117 Chapter 4: The Beneish M-Score Model 119 Company 1 124 Company 2 133 Company 3 143 Indices of the Primary Government 145 Indices of the Governmental Funds 151 Company 4 158 Summary 166 Notes 170 Chapter 5: The Accruals 171 Dechow-Dichev Accrual Quality 173 The Four Companies: Dechow-Dichev Model 175 Sloan's Accruals 18...

Auteur

PAMELA S. MANTONE, CPA, CFF, CITP, CGMA, CFE, FCPA, is a Senior Assurance Manager at Joseph Decosimo & Company, PLLC, practicing in the areas of audit and attestation with a focus on forensic accounting, fraud examination and audits of financial institutions, nonprofit organizations, publicly traded companies and governments. She provides forensic accounting services, with an emphasis on embezzlement and fraudulent financial information for multiple organizations, as well as consulting services regarding the implementation of fraud prevention and fraud protection internal control systems.

Texte du rabat

Detailed tools and techniques for developing efficiency and effectiveness in forensic accounting Using Analytics to Detect Possible Fraud: Tools and Techniques is a practical overview of the first stage of forensic accounting, providing a common source of analytical techniques used for both efficiency and effectiveness in forensic accounting investigations. The book is written clearly so that those who do not have advanced mathematical skills will be able to understand the analytical tests and use the tests in a forensic accounting setting. It also includes case studies and visual techniques providing practical application of the analytical tests discussed. Shows how to develop both efficiency and effectiveness in forensic accounting Provides information in such a way that non-practitioners can easily understand Written in plain language: advanced mathematical skills are not required Features actual case studies using analytical tests Essential reading for every investor who wants to prevent financial fraud, Using Analytics to Detect Possible Fraud allows practitioners to focus on areas that require further investigative techniques and to unearth deceptive financial reporting before it's too late.

Résumé
Suitable for every investor who wants to prevent financial fraud, this title allows practitioners to focus on areas that require further investigative techniques and to unearth deceptive financial reporting before it's too late. It also includes case studies and visual techniques providing practical application of the analytical tests discussed.

Contenu

Preface xi

Acknowledgments xv

Chapter 1: Overview of the Companies 1

The Four Companies 2

Company 1 2

Company 2 5

Company 3 8

Company 4 10

Summary 16

Chapter 2: The "Norm" and the "Forensic" Preliminary Analytics: Basics Everyone Should Know 19

Liquidity Ratios 20

Working Capital 21

Working Capital Index 21

Working Capital Turnover 22

Current Ratio 22

Case Studies: Liquidity Ratios 22

Profitability Ratios 25

Gross Profit 26

Gross Profit Margin 26

Stock Sales 26

Return on Equity 27

Case Studies: Profitability Ratios 27

Company 1 31

Horizontal Analysis 36

Company 1 36

Company 2 43

Company 3 50

Company 4 61

Vertical Analysis 66

Company 1 66

Company 2 70

Company 3 73

Company 4 79

Summary 79

Chapter 3: The Importance of Cash Flows and Cash Flow Statements 83

Cash Flows and Net Income 85

Company 1 87

Company 2 89

Company 3 92

Company 4 97

Other Cash Flow Techniques 100

Company 1 101

Company 2 104

Company 3 107

Company 4 114

Summary 117

Chapter 4: The Beneish M-Score Model 119

Company 1 124

Company 2 133

Company 3 143

Indices of the Primary Government 145

Indices of the Governmental Funds 151

Company 4 158

Summary 166

Notes 170

Chapter 5: The Accruals 171

Dechow-Dichev Accrual Quality 173

The Four Companies: Dechow-Dichev Model 175

Sloan's Accruals 184

The Four Companies: Sloan's Model 185

Jones Nondiscretionary Accruals 191

The Four Companies: Jones Model 192

Summary 196

Notes 198

Chapter 6: Analysis Techniques Using Historical Financial Statements and Other Company Information 199

The Piotroski F-Score Model 200

Company 1 203

Company 2 205

Company 3 207

Company 4 212

Lev-Thiagarajan's 12 Signals 215

Company 1 220

Company 2 222

Company 3 225

Company 4 230

Summary 233

Notes 235

Chapter 7: Benford's Law, and Yes-Even Statistics 237

Benford's Law 239

Company 1 243

Company 2 249

Company 3 255

Company 4 267

Simple Statistics 272

Company 1 277

Company 2 281

Company 3 284

Company 4 289

Summary 290

Note 292

**Chapter …