Supplementary Page for the Book "Accounting Fraud"

by Patrick Müller

06.03.2022

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Welcome to the companion page for
Accounting Fraud: Understanding Balance Sheet Manipulation in Practice and Detecting, Investigating, and Preventing It Early with Data Analysis.

The collapse of Wirecard in the summer of 2020, one of the biggest accounting scandals in post-war Germany, brought the issue of accounting fraud into the spotlight. This book was created in response to the growing demand for practical, up-to-date literature on the early detection and analysis of balance sheet manipulation. It is aimed at professionals in financial accounting, auditing, risk management, and compliance who are seeking effective methods to uncover such manipulations.

This work offers insights into forensic data analysis and explains how early warning signals can be identified and assessed without disclosing specific manipulation techniques in detail. The authors aim to share knowledge that supports the prevention and detection of fraud while promoting the development of auditing standards.

Overview of Contents

Chapter 2: Fraud and Balance Sheet Manipulation
This chapter defines various forms of fraud, explains their impact on financial statements, and differentiates them from simple errors. Special attention is given to the "Fraud Triangle," which highlights the risk factors for balance sheet manipulation. Typical examples and patterns of such manipulations from real cases are presented.

Chapter 3: Key Figures in Financial Statement Analysis
This chapter examines the impact of balance sheet manipulation on key financial figures, including assets, liabilities, and earnings. It explains how anomalies in these figures can be identified and analyzed to uncover potential manipulations.

Chapter 4: Business Processes and System Inputs
This chapter explores how manipulations often occur within accounting and business systems, disguised as regular transactions. It discusses how accounting systems in complex IT landscapes can be used to support and conceal manipulations.

Chapter 5: Warning Signs and Analytical Approaches
Various warning signs of balance sheet manipulation from the environment, IT systems, or transaction data are presented. The chapter explains how these warning signs should be examined using forensic data analysis to determine whether manipulation has occurred.

Chapter 6: Data Analysis Tools
This chapter highlights the importance of modern technologies and data analysis methods, including artificial neural networks, to detect inconsistencies and irregularities in financial statements. The focus is on using digitally recorded and rapidly processed datasets to detect fraud cases.

Chapter 7: Detection, Response, and Prevention
The implementation of whistleblower systems and real-time data analysis for early detection of violations is discussed. The increased protection for whistleblowers, provided by the new EU directive, aims to encourage employees to report suspected cases.

Chapter 8: Recent Cases
The cases of Wirecard, Greensill, and Grenke are examined to show how warning signs could have been recognized in the past and the consequences of these scandals. The Grenke case illustrates that not every anomaly leads to confirmed allegations.

Chapter 9: How to Get Started?
This chapter provides guidance on how companies can develop specific approaches to uncover balance sheet manipulations depending on their industry and IT architecture. It emphasizes the need for both business and technical knowledge to effectively address the challenges of digital and automated business processes.

Chapter and Topic Overview:

Interested?

Our book offers comprehensive information and practical guides on how to effectively detect and combat balance sheet manipulation. From theoretical foundations to current case studies and modern analysis methods – this work is an indispensable resource for professionals in financial accounting, auditing, compliance, and anyone committed to the integrity of corporate finances.

You can easily purchase your copy from Springer or Amazon. Visit the respective websites using the direct links below to learn more and secure your copy. Take the first step in safeguarding your company against balance sheet manipulation!

➡️ Visit Springer with free access from corporate networks with Springer corporate licenses.
➡️ Visit Amazon.