What is the Impact of Fraud?: Some Examples

Different Fraud Schemes impact the basic Financial Statements is a variety of ways. The following examples provide very simple logic flows of three types of fraudulent behaviors 1) Billing or Payables Schemes, 2) Premature or Fictitious Revenue Recognition, 3) Skimming Schemes. The general themes of the analysis necessary to identify the "Red Flags" associated with thee schemes are cited. (Note: Impact on Statement of Cash Flows has been ignored here for simplicity within diagrams)

Please contact Forensic Accounting Specialists (978-821-3469), or via www.forensicaccountingspecialists.com) to discuss how we apply the financial analytics to identify this type of behavior and mitigate the potential losses these schemes represent.

1) Billing/Payables Loss via Shell Company