Financial Statement Fraud.Enron.AICPA

Accounts accounts receivable revenues income assets

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Unformatted text preview: l Misrepresentation (Bre-X Minerals) © 2003, 2005 by the AICPA Revenue Related Financial Statement Frauds Statement By far, the most common accounts By manipulated when perpetrating financial statement fraud are revenues and/or accounts receivable. accounts Accounts Receivable Revenues (Income Assets ) (Income © 2003, 2005 by the AICPA xxx xxx Revenue-Related Transactions and Frauds Transaction Accounts Involved Fraud Schemes 1. Estimate all uncollectible accounts receivable 2. Sell goods and/or s ervices to c ustomers Bad debt expense, allowance for doubtful accounts Accounts receivable, revenues (e.g. sales revenue) (Note: cost of goods sold part of entryh is included in Chapter 5) 1. Understate allowance for doubtful accounts, thus overstating receivables 3. Accept returned goods from c ustomers Sales returns, accounts receivable 4. Write off receivables as uncollectible Allowance for doubtful accounts, accounts receivable 5. Collect cash after discount period Cash, accounts receivable 6. Collect cash within Cash, sales discount period discounts...
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This document was uploaded on 03/29/2014.

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