Why might senior management overstate or understate business performance? What are some of the ways in which financial statement fraud is committed? What are the five classifications of financial statement fraud?

DISCUSSION ESSAY

REVIEW QUESTIONS

1. Why might senior management overstate or understate business performance?
2. What are some of the ways in which financial statement fraud is committed?
3. What are the five classifications of financial statement fraud?

REVIEW QUESTION

1. Generally, how is the problem of management override and collusion addressed?
2. What is the role of the external auditor in the financial reporting process?
3. How is materiality determined?

REVIEW QUESTIONS

• What are the five major categories of fraudulent disbursements?
• How do pay-and-return schemes work?
• What are the five principal categories of check tampering?
• What are the differences between forged maker and forged endorsement schemes?