This course examines how fraud actually happens—through real cases, observable patterns, and the control breakdowns that allow schemes to continue undetected. Participants will study major frauds, including WorldCom, Bristol-Myers Squibb, and HealthSouth, as well as lesser-known cases that reveal how trusted insiders exploit predictable weaknesses. The course then translates these lessons into practical analytics for journal entry testing, revenue manipulation detection, and reserve bias analysis.

• Fraud categories and risk frameworks
• Behavioral red flags and warning signs
• Case studies: WorldCom, Bristol-Myers Squibb, HealthSouth, and others
• Legal smoothing vs. illegal manipulation
• Revenue recognition fraud schemes
• Cookie jar reserves and estimate manipulation
• Expense capitalization schemes
• Journal entry analytics and override detection
• Data requirements and sampling strategies
• Documentation and evidence standards

Upon completion, participants will be able to:

• Identify behavioral red flags and control weaknesses that enable fraud
• Distinguish between aggressive accounting and illegal manipulation
• Apply the Fraud Triangle and Fraud Diamond frameworks to assess client risk
• Design journal entry analytics targeting management override
• Evaluate revenue recognition, reserves, and capitalization for manipulation indicators
• Document fraud-focused procedures that withstand regulatory scrutiny