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Course Details

Crossing the Line - Cases in Financial Statement Fraud and Auditor Deception (Course Id 1323)

QAS / Registry
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Author : Patricia McCarthy, MBA
Course Length : Pages: 16 ||| Review Questions: 3 ||| Final Exam Questions: 5
CPE Credits : 1.0
IRS Credits : 0
Price : $12.95
Passing Score : 70%
Course Type: NASBA QAS - Text - NASBA Registry
Technical Designation: Technical
Primary Subject-Field Of Study:

Auditing - Auditing for Course Id 1323

Description :

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.

Usage Rank : 37778
Release : 2018
Version : 1.0
Prerequisites : None.
Experience Level : Overview
Additional Contents : Complete, no additional material needed.
Additional Links :
Advance Preparation : None.
Delivery Method : QAS Self Study
Intended Participants : Anyone needing Continuing Professional Education (CPE).
Revision Date : 01-Mar-2024
NASBA Course Declaration : Participants must complete the final examination within one year of purchase and with a minimum passing grade of 70% or better to receive CPE credit unless otherwise noted on the Course History page (i.e. California Ethics must score 90% or better). After logging in click on the Course History links on your My Courses page for the Begin date and Expire date for the Final Exam.
Approved Audience :

NASBA QAS - Text - NASBA Registry - 1323

Keywords : Auditing, Crossing, Line, Cases, Financial, Statement, Fraud, Auditor, Deception, cpe, cpa, online course
Learning Objectives :

Course Learning Objectives

Upon completion of this course, you should 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
Course Contents :

Chapter 1 - Crossing the Line - Cases in Financial Statement Fraud and Auditor Deception

Course Overview

Dewey & LeBouef


Principle Administrative Personnel at Dewey & LeBouef

Financial Statement Fraud in 2008

2008 Adjustments

Damaging Emails

Financial Statement Fraud in 2009

2009 Adjustments

More Damaging Emails

Reduction in Covenant

The $150 Million Bond Offering

Collapse of Dewey & LeBouef

The Auditor

Criminal Charges and the Outcome

Discussion of the Dewey & LeBouef Case

The Motivation Behind the Adjustments

How was the Auditor Deceived?

Lessons Learned



Principle Personnel

Alleged Financial Statement Fraud

The Scheme is Exposed

Source of Funding

The Auditor

The Outcome

Discussion of the ContinuityX Case

The Motivation

Lessons Learned

Chapter 1 Review Questions


CPE Auditing Course: https://www.cpethink.com/auditing-cpa-courses
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