Analyze the general journal using the various tools

Reference no: EM133730397

Forensic Accounting Practical Exercise

You are a financial auditor and work on a private limited company's accounts. The Audit Partner suspects that the CEO has used financial statement fraud techniques to inflate net income and get higher bonuses.

The Partner suspects the following fraud schemes have been applied to inflate net income:
Concealed Cost of Goods Sold
Fictitious Revenue
Improper Asset Valuation

The General Journal
You are provided with two years of general journal data. The data files "FAPE Dataset 1-4" can be downloaded from e-learning website. The financial year start date is the 1st of June. It is also important to note that bookkeeping is regularly done on weekends.

Your task
Download the data file to your computer. Please note that the materiality for the engagement is $100,000. Analyze the general journal using the various tools and features in Excel specifically addressing the above-mentioned fraud schemes.

Identify no more than 25 transactions that would need to be investigated further. From these transactions, narrow down and specifically identify transactions you suspect have been applied to inflate income under the three fraud schemes stated above.

You will submit a brief report on the e-learning drop box in Word/PDF format. The report should have a minimum of the following sections:
Introduction - Provide a brief introduction to the audit engagement and your task.

Procedures/methods - Outline the procedures that you undertook to identify the fraudulent transactions.

Findings - In this section present the findings of your analysis of the GL of the audit client. Specifically, identify and explain the transactions you suspect have been applied to inflate income under the three fraud schemes - Concealed Cost of Goods Sold, Fictitious Revenue and Improper Asset Valuation.

Case Study
You can download the dataset available in Excel format for the assigned case study and the instructions available in PDF format by
clicking the link below.

Individual Assessment - Expert Witness Report
For this assessment, students are required to prepare a financial expert witness report of 2000 words for the case assigned by the
lecturer/tutor. The report should contain an introduction explaining:
a) Who they are and their professional role
b) The parties involved
c) The scope of financial analysis and evidence-based opinion
Students must clearly explain the evidentiary calculations and suggest conclusions for their clients, opposing counsel, and the trier-
of-fact.

Reference no: EM133730397

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