Comma Splices & Punctuation Errors
Comma splices occur when a comma incorrectly joins two independent clauses. Learn about this common writing error, its consequences, and how to avoid it. Explore examples illustrating proper comma usage in different contexts like separating items in a series, adjectives, numbers, and distinguishing dependent clauses from independent ones.
Download Presentation
Please find below an Image/Link to download the presentation.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author.If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.
You are allowed to download the files provided on this website for personal or commercial use, subject to the condition that they are used lawfully. All files are the property of their respective owners.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author.
E N D
Presentation Transcript
Todays Topics Shenanigans 1-4 Article Overview Data Driven Fraud Detection FORENSIC ACCOUNTING - BA124 Spring 2015 6-1
Shenanigan Update Shenanigan #1 Shenanigan #2 Shenanigan #3 Shenanigan #4 FORENSIC ACCOUNTING - BA124 Spring 2015 6-2
Shenanigan #1 Technique #1: Recording revenue when obligations remain Technique #2: Recording revenue in excess of contract value Technique #3: Recording revenue before buyer s acceptance Technique #4: Recording revenue when payment is not assured FORENSIC ACCOUNTING - BA124 Spring 2015 6-3
Revenue Red Flags Aggressive Rev. Rec. Policies Rise in unbilled receivables Rising receivables Rising allowance for doubtful accounts Increased returns FORENSIC ACCOUNTING - BA124 Spring 2015 6-4
Earnings Manipulation Shenanigan #2- Recording Bogus Revenue Technique #1: Lack of economic substance Technique #2: Lack of arm s length Related parties Round-trip transactions Supplier rebates Technique #3: Non-operating revenue transactions Investment income as operating revenue Loans recorded as revenue Technique #4: Recording revenue at inflated amounts Priceline.com Technique #5: Post merger deferred revenue FORENSIC ACCOUNTING - BA124 Spring 2015 6-5
Shenanigan #3- Boosting (Operating) Income Technique #1: Boosting income using one-time events Selling of undervalued assets Technique #2: Boosting income through misleading classifications Including investment gains in ops. income Reducing opex by investment gains Reclassifying balance sheet accounts FORENSIC ACCOUNTING - BA124 Spring 2015 6-6
Shenanigan #3 Warning Signs Turning sales proceeds into recurring income Shifting operating expenses Recurring restructuring costs Influence misinterpretation impact on income statement FORENSIC ACCOUNTING - BA124 Spring 2015 6-7
Shenanigan #4- Expense Shifting with Assets Think WorldCom Technique #1: Capitalizing normal operating costs-AOL Technique #2: Slow amortization/depreciation (somewhat subjective)-Time Warner Telecom Technique #3: Failing to write-down impaired assets-Coldwater Creek Technique #4: Reducing asset reserves-Vitesse FORENSIC ACCOUNTING - BA124 Spring 2015 6-8
Shenanigan #4 Red Flags Changes in capitalization policy pre-IPO Late accounting change announcements FORENSIC ACCOUNTING - BA124 Spring 2015 6-9
Transparency is Key Are the #s telling the story or making the story? Is the company managing the business or managing the #s? What is, is? versus What is. Is! Recall SFAC #1 Improved decision making Insight into future cash flows Resource information FORENSIC ACCOUNTING - BA124 Spring 2015 5-10
Article Overview Fakin It .Fraud inside the fraud at Enron Fraud Prevention Education SJSU is ahead of the curve No Free Pass revised interest in enforcing FCPA Fraud Finds SOX has helped the assessment of fraud Oddsmakers finding fraud on the field FORENSIC ACCOUNTING - BA124 Spring 2015 6-11
Data Analysis & Fraud Detection Data Analysis Process Data Analysis Software Data Access Challenges Data Analysis Techniques FORENSIC ACCOUNTING - BA124 Spring 2015 12
Data Analysis Process Understand the business Brainstorm frauds Identify fraud symptoms Use technology to collect symptom data Analyze the data Investigate selected symptoms FORENSIC ACCOUNTING - BA124 Spring 2015 13
Data Analysis Software ACL CaseWare Picalo Microsoft + Active Data FORENSIC ACCOUNTING - BA124 Spring 2015 14
Data Access Challenges and Tools Open database connectivity (ODBC) Text importing-extensible markup language (XML) Data warehousing FORENSIC ACCOUNTING - BA124 Spring 2015 15
Data Analysis Techniques Benford s Law Time trends Fuzzy matching Matosas and real time analysis FORENSIC ACCOUNTING - BA124 Spring 2015 16
Benfords Law Occurrence of digits in a random number sequence Series starting with 1 s greater than 2 s; 2 s greater than 3 s, etc. Effective for locating falsified trends FORENSIC ACCOUNTING - BA124 Spring 2015 17
Financial Statement Analysis Methodology Trends Ratios Horizontal analysis Vertical analysis What looks out of the ordinary FORENSIC ACCOUNTING - BA124 Spring 2015 18
