Detecting accounting fraud : analysis and ethics / Cecil W. Jackson, University of Southern California.

Includes bibliographical references and index.

Introduction to the problem of accounting fraud -- Ethics at work -- The sizzling saga of Sunbeam -- Hocus pocus -- Worldcom wizardry : from WorldCom to worldcon -- Abracadabra -- Enron and the tale of the golden goose -- Tall tales -- Mortgage mayhem.

For courses in Accounting Fraud, Forensic Accounting, Financial Statement Fraud, Financial Statement Analysis, Ethics for Accountants, and Auditing. A case-study approach that enables students to identify key signs of fraud in financial statements

Over the last two decades, financial statement fraud has become an increasingly serious issue, resulting in the collapse of ostensibly solid companies and a subsequent lack of confidence in financial markets. Detecting Accounting Fraud: Analysis and Ethics was created in response to the challenges facing accountants in this era.

The text provides students a thorough overview of the most frequently used methods of overstating earnings and assets or understating debt in financial statements. It also provides detailed coverage of the main signals indicating possible fictitious reporting in financial statements to help students learn what to look for. And because breakdowns in ethics underlie accounting fraud, the text presents three major theories of ethics, plus applicable ethical decision-making models as well as opportunities for students to apply ethical models to real-world situations.

This text provides a better teaching and learning experience?for you and your students. It will help you to:
? Explain accounting fraud through detailed case studies: The text?s real-world case study approach helps students understand the methods used to perpetrate financial statement fraud today.
? Focus student attention on ethics: Ethics coverage integrated throughout the text helps students understand this topic?s importance vis-à-vis accounting fraud.
? Foster thorough understanding via student-focused features: An engaging, captivating writing style and diverse end-of-chapter materials motivate and assist students.
Features

Explain accounting fraud through detailed case studies

A detailed case-study approach helps students understand what accounting fraud entails, how it occurs, and what can be done to protect against it moving forward. For each real-world case, the text:
? Identifies the accounting fraud or method of fictitious financial reporting utilized by a specific company.
? Presents background information about the company and its key executives.
? Describes the fraud or scheme in detail, referencing the company?s financial statements as well as primary documents.
? Explains how a particular accounting scheme or fraud yields tell-tale signals in the company?s financial statements.
? Presents a new case study of another company that perpetrated an accounting fraud or scheme similar to that discussed earlier in the chapter, prompting students to identify signals of potential fraud in this company?s financial statements.
A wide variety of original, primary documents (or relevant extracts from such documents) add a high level of authenticity to the real-world cases covered in the text. Such documents include Accounting and Auditing Enforcement Releases, Litigation Releases, Complaints, and Financial Statements.

In addition to analyzing several well-known case studies (Sunbeam, WorldCom, Countrywide, etc.), the text presents a number of new and unusual case studies for students to examine, including companies such as Beazer Homes, Peregrine Systems, and TierOne Bank.


Focus student attention on ethics

Coverage of three major theories of ethics, as well as applicable ethical decision-making models, helps students understand how breakdowns in ethics underlie accounting fraud.

?Ethics at Work? sections throughout the book prompt students to examine the ethical dimensions (or lack thereof) of various case studies.


Foster thorough understanding via student-focused features

A lively and engaging writing style, with interesting background information on many of the companies and their executives, draws students into the material and commands their continued interest.

A range of end-of-chapter assignments provides students ample opportunities to apply what they have learned.
? Short, end-of-chapter questions help students ascertain that they?ve understood the material.
? In-depth discussion questions and exercises enable a more comprehensive grasp of course content. An extensive list of references for each chapter invites further research and reading on the various topics covered.

A useful appendix at the end of the text summarizes the top 25 signals indicating possible fictitious reporting in financial statements.