Creative Accounting: Navigating the Grey Areas of Financial Reporting
This course explores creative accounting techniques used by companies to manipulate financial statements. Participants will learn about revenue recognition and expense manipulation, as well as asset and liability misrepresentation. The course includes detailed case studies and examples, highlights ethical implications and legal consequences, and provides audit strategies for detecting and preventing these practices.
Course Information
Course No. CAM014
Format: Online pdf (70 pages). Printed book available.
Prerequisites: None
Advance Preparation:None
Level: Intermediate
CPE Credit: 4 Hrs.
Field of Study: Accounting: Technical
Course expiration: You have one year from date of purchase to complete the course.
Course Revision Date: October 2024
Objectives
Upon completion of this course, you will be able to:
• Recognize the key motivations behind creative accounting techniques
• Identify areas of U.S. GAAP that are most susceptible to manipulation
• Identify techniques used by companies to manipulate revenue in financial statements
• Recognize techniques used by companies to conceal or misstate expenses
• Identify techniques used to manipulate asset values and liability balances
Course Contents
Motivations Behind Creative Accounting
U.S. GAAP Susceptible to Creative Accounting
Ethical Implications and Legal Consequences of Creative Accounting
Well Known Case Studies
The Role of Corporate Governance
Discussion of Specific Creative Accounting Techniques
Revenue Recognition Manipulation Techniques
Premature Revenue Recognition
Round-Tripping Transactions
Channel Stuffing
Bill-and-Hold Arrangements
Expense Manipulation Techniques
Capitalizing Expenses
Shifting Expenses
Misclassifying Expenses
Overstating Asset Lives
Asset Manipulation Techniques
Overvaluation of Inventory
Overstating Accounts Receivable
Inflating Fixed Assets
Valuation of Intangible Assets
Overstating Deferred Tax Assets
Liability Manipulation Techniques
Underreporting Liabilities
Off-Balance Sheet Financing
Reclassifying Liabilities
Improper Use of Contingent Liabilities
Using Complex Financial Instruments
Hiding Pension Obligations
Misclassifying Debt as Equity
easy to understand