everything on managment ppt definition info etc.ppt
- 1. FORENSIC ACCOUNTING - BA124 - 2015 Today’s Topics E-Commerce Fraud Cash Flow Shenanigans Metrics Shenanigans
- 2. FORENSIC ACCOUNTING - BA124 - 2015 E-Commerce Fraud
- 3. FORENSIC ACCOUNTING - BA124 - 2015 E-Commerce The Good, The Bad & The Ugly The Good Faster, cheaper and less prone to error Customer centric The Bad Hardware issues…spotted owl disease False sense of organization Initial cost and implementation issues Emerging economy issues…haves and have-nots The Ugly The bad guys and hackers…our focus today
- 4. FORENSIC ACCOUNTING - BA124 - 2015 Consider This… The race to 60 million users Radio—30 years TV—15 years The Internet—3 years to 90 million users
- 5. FORENSIC ACCOUNTING - BA124 - 2015 E-Commerce Fraud Risks P – O – R…see text
- 6. FORENSIC ACCOUNTING - BA124 - 2015 E-Commerce Fraud Prevention Difficult to impact pressure and rationalization at this time Lack of personal contact with fraudsters Avoid “iffy” situations and “sketchy” firms Focus on reducing opportunities
- 7. FORENSIC ACCOUNTING - BA124 - 2015 Prevention in the Opportunity Sector The control environment Integrity and ethics Board and Audit Committee involvement Tone at the Top Human resource policies and practices (training) Risk assessment efforts Implementation of control activities
- 8. FORENSIC ACCOUNTING - BA124 - 2015 Risk Assessment Data theft is the big issue…not cash Sniffing for passwords Unauthorized password access False identification of users Spoofing for headers and “IP” (protocol models) Impersonation of customers False or misleading websites Hijacking to copy-cat websites
- 9. FORENSIC ACCOUNTING - BA124 - 2015 Prevention Through Control Activities Separation of duties Authorization techniques Firewalls Passwords Digital signatures Biometrics Documentation and encryption Physical control Independent assessment (operational auditing) On-going not spot-checking
- 10. FORENSIC ACCOUNTING - BA124 - 2015 E-Commerce Fraud Detection Proactive posture On-going analysis and effort Defending the Digital Frontier, Mark Doll, Sajay Rai and Jose Granado. Ernst & Young, LLP.
- 11. FORENSIC ACCOUNTING - BA124 - 2015 Final Shenanigans Cash Flow Shenanigans Metrics Shenanigans
- 12. Cash Flow Shenanigans CFS #1: Shifting Financing inflows to Operating inflows CFS #2: Shifting Operating outflows to Investing outflows CFS #3: “Inflating” Operating inflows through normal but infrequent ops CFS #4: “Inflating” Operating inflows through normal operations FORENSIC ACCOUNTING - BA124 - 2015
- 13. CFS #1 Bank borrowings as CFO Sale of receivables as CFO Sham sale of receivables as CFO FORENSIC ACCOUNTING - BA124 - 2015
- 14. CFS #2 Boomerang transactions Capitalization of operating expenses Treating inventory purchases as investing activities FORENSIC ACCOUNTING - BA124 - 2015
- 15. CFS #3 Inheriting cash flows via acquisition Acquisition of customers or products Structuring a divestiture to benefit operating cash flows FORENSIC ACCOUNTING - BA124 - 2015
- 16. CFS #4 Paying vendors more slowly Collecting from customers more quickly Purchasing less inventory Limited disclosure of one-time benefits FORENSIC ACCOUNTING - BA124 - 2015
- 17. Metrics Shenanigans MS #1: Misleading metrics that overstate performance MS #2: Distorting metrics that avoid bad news FORENSIC ACCOUNTING - BA124 - 2015
- 18. MS #1 Proforma revenue metrics Proforma earnings metrics Proforma cash flow metrics FORENSIC ACCOUNTING - BA124 - 2015
- 19. MS #2 Distorting A/R metrics Distorting inventory metrics Distorting financial asset metrics Distorting debt metrics FORENSIC ACCOUNTING - BA124 - 2015