Cases in Financial Statement Fraud and Auditor DeceptionCode: 21-LINE
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Course description and objectives:
This course is based on two recent financial statement fraud cases; Dewey & LeBouef and ContinuityX. Dewey & LeBouef was a high‐profile law firm that, at its peak, had over 3,000 employees and over 1,400 lawyers. It is alleged that personnel at Dewey & LeBouef made inappropriate financial adjustments starting in 2008 to meet its bank lending covenants and planned to conceal these adjustments from its clueless auditor. Dewey & LeBouef declared bankruptcy in 2012.
ContinuityX was an internet services reseller that, according to an SEC complaint, fabricated 99% of its revenue. It was audited by a firm that was fined and disciplined by the SEC and the partner responsible for the audit was also fined and permanently suspended from practicing before the SEC. ContinuityX declared bankruptcy in 2013.
Both cases involve financial statement fraud, auditor deception and some lessons to be learned.
After reading the materials, participants will be able to
- Recognize the primary elements of financial statement fraud in the Dewy & LeBouef and ContinuityX cases
- Associate the primary elements of financial statement fraud in the cases in this course with audit procedures that may have detected the fraud
Presentation Method: QAS Self-Study
CPE credit: 1 Hour
Program Level: Update
Advance Preparation: None
Exam expiration date: Participants must submit exams for grading within one year from the date of purchase