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.
Featuring case studies throughout from four companies, illustrating the application of tools included in the book, Using Analytics to Detect Possible Fraud demonstrates how to interpret the results of the testing in each case study, with techniques including:
- Liquidity ratios
- Profitability ratios
- Horizontal analysis
- Vertical analysis
- Cash realized from operations
- Analyzing cash realized from operations to net income from operations
- The Beneish M-Score Model
- Dechow-Dichev Accrual Quality
- Sloan's Accruals
- Jones Non-discretionary Accruals
- The Piotroski F-Score Model
- Lev-Thiagarajan's 12 Signals
- Benford's Law
- Z-Score Analysis
- Correlation
- Regression Analysis
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.
Key Features
- 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.
Contents
- Chapter 1: Overview of the Companies
- Chapter 2: The “Norm” and the “Forensic” Preliminary Analytics: Basics Everyone Should Know
- Chapter 3: The Importance of Cash Flows and Cash Flow Statements
- Chapter 4: The Beneish M-Score Model
- Chapter 5: The Accruals
- Chapter 6: Analysis Techniques Using Historical Financial Statements and Other Company Information
- Chapter 7: Benford's Law, and Yes—Even Statistics
- Chapter 8: Grading the Four Companies
- Index
Praise for This Book
"I have had the pleasure of working with Pam Mantone over the past ten years, not only in the areas of fraud prevention and detection, but also in the area of litigation support involving significant fraud cases. Pam is a tenacious fraud examiner who has made a commitment to advance her skills to the highest level attainable in the profession. This exceptional book is an example of her dedication to the detection of fraud using advanced analytical techniques. In my opinion, her book should be required reading and an essential part of the technical library of any devoted fraud examiner."
—Mike Costello, CPA/CFE, Practice Leader, Litigation Support, Decosimo Advisory Services
About the Authors
- 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.
Book Details
- Hardcover: 368 pages
- Publisher: Wiley; 1 edition (c2013)
- Language: English
- ISBN-10: 1118585623
- ISBN-13: 978-1118585627
- Product Dimensions: 9.4 x 7 x 1.3 inches
- List Price: $95.00