Matakuliah : F0184/Audit atas Kecurangan
Tahun
: 2007
Financial Statements Fraud
Pertemuan XXIII
Learning Outcomes
• Mahasiswa diharapkan dapat melakukan analisa
terjadinya sebuah kecurangan dalam pelaporan
keuangan
• Mahasiswa diharapkan mengetahui ancaman yang
dapat terjadi dalam aktivitas pelaporan keuangan
3
Bina Nusantara
Outline Materi
• Fraud Definition
• Red Flag of Financial Statements
• Methodologies of financial statements fraud
– Earning Manipulation
– Earning Management
– Balance Sheet Manipulation
4
Bina Nusantara
Elimination of Materiality Loophole
Materiality will not valid in the following conditions:
₣ Whether the misstatement arises from an item capable
of precise measurement or whether it arises from an
estimate
₣ Whether the misstatement masks a change in earnings
or other trends
₣ Whether the misstatement hides a failure to meet
analysts consensus expectations for the enterprise
₣ Whether the misstatement changes a loss into income
or vice versa
Bina Nusantara
Elimination of Materiality Loophole (Con’t)
Materiality will not valid in the following conditions:
₣ Whether the misstatement concerns a segment or
other portion of the registrant’s business that has been
identified as playing a significant role in the registrant’s
operations or profitability
₣ Whether the misstatement affects the registrant’s
compliance with regulatory requirements
₣ Whether the misstatement affects the registrant’s
compliance with loan covenants or other contractual
requirements
Bina Nusantara
Elimination of Materiality Loophole (Con’t)
Materiality will not valid in the following conditions:
₣ Whether the misstatement has the effect of increasing
management’s compensation
₣ Whether the misstatement involves concealment of an
unlawful transaction
Bina Nusantara
Common Methods of Committing Fraud
Earning
Manipulation
Earning
Management
Balance
Sheet
Manipulation
Bina Nusantara
Earning Manipulation
Contingent
Compensation
Insider Trading
Stock Compensation
Bina Nusantara
Earnings Management
Big bath restructuring charges
In process research and development
Cookie Jar reserves
Materiality
Bina Nusantara
Balance Sheet manipulation
Fraudulent
Entries
Hiding
Transactions
Bina Nusantara