Unraveling Fraud Risks in Financial Statements (Course Id 2503)

• Who is this course for?
  This course is intended for anyone needing Continuing Professional Education (CPE), especially CPAs and accounting professionals.

• What is this course about or what problem does this course solve?
  This course addresses fraud risks in financial statements by exploring how fraud occurs, the roles of management, and the ethical and legal responsibilities of auditors.

• How can the knowledge from this course be used?
  Learners can use this knowledge to recognize and respond to fraud risks, detect unethical behavior, and implement controls that enhance financial statement integrity.

• Why is this course important to a CPA, Accountant, or IRS Enrolled Agent?
  It is essential for understanding how to prevent, detect, and address fraud, ensuring compliance with professional standards and protecting financial statement reliability.

• When is this course relevant or timely?
  Released in 2025 and satisfying specific state board requirements like California’s fraud CPE mandate, it is especially timely for those renewing their credentials or addressing evolving fraud challenges.

• How is a course like this consumed or used?
  Delivered as a NASBA QAS self-study text course, it is completed independently, requiring the reading of course material and passing a final exam with at least 70% within one year of purchase.

This course provides an overview of fraud risks and responsibilities, focusing on the conditions that enable fraud, management's role, and the ethical and legal considerations auditors face. Participants will explore key topics, including fraudulent financial reporting, misappropriation of assets, and management override of controls, along with the behavioral and cultural drivers that contribute to fraud. This course emphasizes fraud prevention, detection, and the importance of ethical decision-making in upholding financial integrity. 

Please Note: These Fraud CPE credits satisfy the California Board of Accountancy (CBA) fraud requirement.

NASBA QAS - Text - NASBA Registry - 2503

Course Learning Objectives

• Recognize the conditions that enable fraud, including incentive, opportunity, and rationalization
• Identify fraudulent activities such as fraudulent financial reporting and misappropriation of assets
• Distinguish between the behavioral and cultural drivers that contribute to fraudulent actions
• Recall the ethical and legal responsibilities of auditors when addressing fraud risks
• Determine how management override of controls creates opportunities for fraud

Chapter 1 - Unraveling Fraud Risks in Financial Statements

Course Learning Objectives

Course Overview

Introduction

Fraud Overview

Fraudulent Financial Reporting

Misappropriation of Assets

Conditions for Fraud

Review Questions

Management & Fraud Risks

Management Override of Controls

Ethical Responsibilities and Legal Considerations

Conclusion

Review Questions

Glossary of Key Terms