Financial Statement Fraud Concerns: Critical Considerations for Detecting Risk

According to a study conducted by the Association of Certified Fraud Examiners (ACFE), fraudulent financial statement accounts for approximately 10% of incidents concerning white collar crime. Asset misappropriation and corruption tend to occur at a much greater frequency, yet the financial impact of these latter crimes is much less severe. ACFE defines fraud as "deception or misrepresentation that an individual or entity makes knowing that the misrepresentation could result in some unauthorized benefit to the individual or to the entity or some other party." Greed and work pressure are the most common factors pushing management to deceive investors and creditors.

Financial fraud is a serious white-collar crime that often comes with heavy punishment and fines. We’ll look at the key controls that should be considered to mitigate risk and identify fraud.  We’ll discuss five case studies that provide solid examples and identify the “red flags” of financial statement fraud.

Learning Objectives: 

• You’ll learn about the controls and techniques that will mitigate the risk of financial statement fraud.
• We’ll identify the “red flags” and indicators of financial statement fraud.

You’ll learn about “real life” examples of financial statement fraud by delving into five significant case studies.

Chris Doxey, CAPP, CCSA, CICA, CPC, President, Doxey Inc., Paeonian Springs, VA

Chris Doxey is an author, speaker and management consultant who is passionate about improving financial process.Chris focuses on internal controls, process transformation and automation. She has extensive experience with trade directories, metrics and analytics and self-audit tools.

Chris spent more than25 years at Hewlett Packard and Verizon in senior P2P, logistics, and finance andaccounting leadership positions.Chris held executive positions with global P2P audit firms for eight years.During her eight years of management consulting experience, Chris designed a new fiscal closing process for a large enterprise, implemented a self-audit tool for a global P2P audit firm. Chrisdeveloped the requirements for a trade directory and drove theimplementation process for a global financial institution. As an example of her process transformation work, Chris worked with a large university to improve internal controls and implement automated account payable processes. She also develops educational content for several P2P solution providers.

Chris works with the riskcloud product team at Oracle where she developed the initial set of automated P2P controls and collaborates with the Oracle team on a frequent basis to discuss improvements. She is a long-time speaker at Oracle’s Open World conferences.She leads the risk advisory practice for an Oracle partner and supports the implementation of risk cloud for large enterprise clients. 

Chris is acertified accounts payable professional (CAPP) and holdsa certification in controls self-assessments (CSA). She is a certified professional controller (CPC) and a certified internal controls auditor (CICA). Chris holds a BA, BS, MBA, and a graduate certificate in project management. Chris is a member of the Institute for Internal Controls (IIC), the Institute of Internal Auditors (IIA) and the Association of Certified Fraud Examiners (ACFE). She is onthe advisory board for the IIC and the Exchange Summit.Chris is the author of The Internal Controls Toolkit and The Fiscal Close Toolkit published by Wiley in 2019. The Controller’s Toolkit and The AP Toolkit will be published in 2021.