Deceptive Accounting Practices: Revenue and Expense Manipulation (Course Id 2420)

This course explores deceptive accounting practices used by companies to manipulate revenue and expenses. Participants will learn about specific revenue recognition techniques such as premature revenue recognition, channel stuffing, bill-and-hold arrangements. Participants will also learn about expense manipulation techniques such as capitalizing expenses, shifting expenses, and misclassifying expenses.  The course includes detailed examples and highlights the ethical implications and legal consequences of these practices.

NASBA QAS - Text - NASBA Registry - 2420

Course Learning Objectives

• Recognize the key motivations behind deceptive accounting techniques
• Identify areas of U.S. GAAP that are most susceptible to manipulation
• Identify techniques used by companies to manipulate revenue in financial statements
• Recognize techniques used by companies to conceal or misstate expenses

Chapter 1 - Deceptive Accounting Practices: Revenue and Expense Manipulation

Course Learning Objectives

Introduction

U.S. GAAP Susceptible to Deceptive Accounting

Enron & WorldCom

Revenue Recognition Manipulation Techniques

Premature Revenue Recognition

Round-Tripping Transactions

Channel Stuffing

Bill-and-Hold Arrangements

Review Questions

Expense Manipulation Techniques

Capitalizing Expenses

Shifting Expenses

Misclassifying Expenses

Overstating Asset Lives

Review Questions

Glossary of Key Terms