tailieunhanh - Ebook Fraud examination (3rd edition): Part 2

(BQ) Part 2 book "Fraud examination" hass contents: Financial statement fraud; revenue and inventory related financial statement frauds; liability, asset, and inadequate disclosure frauds; fraud against organizations; consumer fraud; bankruptcy, divorce, and tax fraud; fraud in e commerce; legal follow up,.and other contents. | PART 5 MANAGEMENT FRAUD CHAPTER 11 Financial Statement Fraud CHAPTER 12 Revenue- and Inventory-Related Financial Statement Frauds CHAPTER 13 Liability, Asset, and Inadequate Disclosure Frauds This page intentionally left blank CHAPTER FINANCIAL STATEMENT FRAUD LEARNING OBJECTIVES | 1 2 3 4 5 6 7 After studying this chapter, you should be able to: Discuss the role that financial statements play in capital markets. Understand the nature of financial statement fraud. Become familiar with financial statement fraud statistics. See how financial statement frauds occur and are concealed. Outline the framework for detecting financial statement fraud. Identify financial statement fraud exposures. Explain how information regarding a company’s management and directors, nature of organization, operating characteristics, relationship with others, and financial results can help assess the likelihood of financial statement fraud. TO THE STUDENT Chapter 11 is the first of three chapters on financial statement fraud, also known as management fraud. This chapter discusses the numerous financial statement frauds discovered in corporate America between 2000 and 2002. We discuss the common elements of these frauds and the conditions that led to this rash of financial statement fraud. Financial statement frauds almost always involve company management and are the result of pressures to meet internal or external expectations. This chapter provides a framework for detecting financial statement fraud, which emphasizes the need to consider the context in which management is operating and being motivated. R ite Aid Corporation opened its first store in September 1962 as Thrift D Discount Center in Scranton, Pennsylvania. From the start, the company grew rapidly through acquisitions and the opening of new stores, expanding to five northeastern states by 1965. It was officially named Rite Aid Corporation in 1968, the same year it made its first public offering and .