Dissecting Financial Statements

Catalog description

Offers students an opportunity to learn how to review, detect, and investigate possible financial statement concerns of publicly and privately held businesses, as well as nonprofit organizations and family businesses. Financial records of the companies studied span a variety of industries. Topics include legal elements of financial statement fraud, management’s and auditor’s responsibilities, improper revenue/sales recognition, inadequate disclosure of related-party transactions, improper asset valuation, improper deferral of costs and expenses, financial statement red flags, and inadequacies in management’s discussion and analysis. Addresses such factors as off-balance-sheet activity, liquidity, financial performance indicators, unreported intangibles, and lease auditing. Typical cases could include WorldCom, Enron, Rite Aid, Crazy Eddie, and ESM Government Securities.