Detecting Financial Statement Fraud
Fraud detection is becoming a fast-growing challenge in financial statement audits given the continuously changing environment of rising risks, regulatory activities and reforms, and compliance costs.
As much chaos can result in inefficient fraud detection strategies, the management team or internal audit function should be aware of the best practices and emerging issues relevant in today’s distinctive hurdles.
In this course, the Knowledge Groups teams up with a panel of key experts to help you navigate through pitfalls in a two-hour live webcast. The panel will discuss the following issues:
• The Changing Patterns of Financial Statement Fraud
• Best practices in Detecting Financial Statement Fraud
• IT’s role in Fraud Detection
• Continuous Monitoring (CM) and Continuous Auditing (CA)
• Application of Risk Assessment Techniques
• What are the Financial Statement Fraud Risk Factors?
• Spotting Financial Statement Fraud Schemes
• Insights and Regulatory Updates
Jared L. Kopel, Partner,
Wilson Sonsini Goodrich & Rosati
1. SEC’s New Whistleblower Rules Will Alter Internal Investigations and SEC Investigations
- Companies need to know how to respond to whistleblower complaint
- Internal investigations increasingly will be expected to report to SEC
2. The Most Overlooked Weakness is the Company Controller
- Often no more than glorified bookkeeper
- Controller should be first line of defense against fraud
3. New Liabilities for Outside Directors
- SEC actions require outside directors to be more vigilant in detecting fraud
- Directors responsible for maintaining internal controls and identifying red flags
4. New Focus on Cash Flow
- Cash flow once was thought to be “fraud-proof”
- New focus on bogus transactions intended to improve reported cash flow
5. Qualitative v Quantitative Materiality.
- SAB 99 has new focus
Gary M. Arrick, CPA, CFE, CFF, Principal,
- The characteristics of financial statement fraud
- Recent fraud survey results
- Top fraud schemes
- The characteristics of situations that may foster an environment for someone to engage in financial statement fraud
- Internal controls to guard against financial statement fraud
Adam G. Safwat, Deputy ChiefFraud Section, Criminal Division,
U.S. Department of Justice
** Speaker Talking Points to be added soon.. **
Who Should Attend:
- Internal Auditors of All Levels
- CEOs and CFOs
- Other Related Professionals
Jared Kopel is a litigation partner at Wilson Sonsini Goodrich & Rosati, where he specializes in securities litigation and Securities and Exchange Commission (SEC) defense work. He primarily focuses on defending shareholder class action lawsuits; litigating significant corporate transactions such as tender offers and mergers and acquisitions; conducting internal investigations; and counseling companies on securities regulation matters. His practice also includes drafting briefs; managing discovery; taking and defending depositions; representing clients in SEC testimony, preparing Wells Submissions on behalf of clients for submission to the SEC; oral argument before trial and appellate courts; appearing at fact-finding conferences and mediations; and sponsoring public seminars on SEC-related developments for Silicon Valley executives.
Jared has been involved in the defense of approximately 50 shareholder lawsuits and has represented clients in more than 100 SEC and National Association of Securities Dealers (NASD) investigations, including investigations involving possible insider trading, financial statement fraud, and disclosure issues. He began his legal career in the enforcement division of the SEC in Washington, D.C., where he worked six years as a staff attorney and branch chief.
Jared Kopel is a litigation partner at Wilson Sonsini Goodrich & Rosati, where he specializes in securities litigation and Securities …
Gary M. Arrick is a Principal at Rothstein Kass Business Advisory Services, LLC, based in the New York office, where he leads the Litigation & Forensic Accounting Services practice in the Firm’s Eastern region. His extensive experience includes matters involving financial misconduct, quantification of damages, and regulatory and financial reporting matters. Gary has experience in both criminal and civil matters involving issues such as whistleblower allegations, aiding and abetting, embezzlement, self-dealing, adequacy of financial disclosures, breach of contract damages, purchase price and shareholder disputes, and various forms of financial reporting issues including accounting irregularities and earnings management, and fraudulent financial reporting.
Prior to joining Rothstein Kass, Gary held senior positions with Big Four and other international accounting and consulting firms.
Gary is a Certified Public Accountant in New York and New Jersey, a Certified Fraud Examiner, and he is Certified in Financial Forensics.
Gary M. Arrick is a Principal at Rothstein Kass Business Advisory Services, LLC, based in the New York office, where …
Adam G. Safwat is an Assistant Chief in the Fraud Section of the U.S. Department of Justice, Criminal Division. Mr. Safwat joined the Fraud Section in June 2006, and he handles investigations involving corporate securities fraud and the Foreign Corrupt Practices Act (“FCPA”). While at the Fraud Section, Mr. Safwat has worked on investigations involving accounting fraud related to the improper use of special purpose entities by a financial services subsidiary of American International Group (“AIG”), and was a member of the trial team in a securities fraud trial of former executives of AIG and General Re, a subsidiary of Berkshire Hathaway, who were alleged to have engaged in a sham transaction designed to window-dress AIG’s financial statements. Mr. Safwat was also involved in the Department’s investigation of a financial institution’s representations to shareholders about its credit default swap accounting. More recently, Mr. Safwat was involved in the FCPA resolutions against Panalpina World Transport and Transocean.
Mr. Safwat is a 1994 graduate of Duke Law School and was a note editor on the Duke Law Journal. After graduating from law school, Mr. Safwat clerked for the Honorable Walter K. Stapleton, United States Court of Appeals for the Third Circuit. Subsequently, Mr. Safwat was an associate at Cravath, Swaine & Moore in New York and then Wilson, Sonsini Goodrich & Rosati in Palo Alto. Prior to joining the Fraud Section, Mr. Safwat was an Assistant U.S. Attorney in the U.S. Attorney’s Office for the District of Delaware, where he served from September 2002 until June 2006.
Adam G. Safwat is an Assistant Chief in the Fraud Section of the U.S. Department of Justice, Criminal Division. Mr. …
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U.S. Department of Justice
About Wilson Sonsini Goodrich & Rosati
Wilson Sonsini Goodrich & Rosati is a leading provider of legal services to technology, life sciences and growth business enterprises at all stages of their development, from the start-up phase to global multibillion global enterprises. Wilson Sonsini is one of the leaders in venture capital financings, public offerings and mergers and acquisitions in the technology and life science sectors. The firm also represents the venture capital funds, private equity firms and other financial institutions that fund these companies. Wilson Sonsini also has represented numerous companies on a wide array of legal matters, including defending shareholder class action and derivative lawsuits, and Government investigations, and advising on corporate governance issues.
About Rothstein Kass
Rothstein Kass Business Advisory Services, LLC professionals provide value-added and result-oriented consulting services to clients across industries in the areas of strategy, operations, technology, risk, compliance, dispute resolution and investigations. Rothstein Kass Business Advisory Services, LLC is an affiliate of Rothstein, Kass & Company, P.C., a premier certified public accounting firm serving clients for more than 50 years.