Accounting irregularities are at the heart of those kinds of frauds that hit financial statements and include misstatement, misclassification as well as misrepresentation. In essence, they involve manipulation of accounting data, description or disclosure in order to distort the true financial picture of the organization in question. This book provides an in-depth practical reference, designed for litigators, investigators, auditors, accountants and other professionals who need to understand and combat accounting irregularities and to uphold the integrity of financial statements. Regulators will find this book an essential source of ideas and references when considering reforms. Educators and students will see this book as an alternative, inspiring way of understanding accounting and how to stay alert for accounting irregularities. The first two chapters introduce the basics of accounting irregularities in the context of the financial reporting environments, and generally accepted accounting principles in the UK and Hong Kong. Perpetrators often seek ways to creating financial illusions in four common directions - selling more, costing less, owning more and owing less as discussed in Chapters 3 to 6. The seventh chapter considers various ways that perpetrators manipulate the classification and disclosure of financial statements. Chapter 8 explores three scenarios of accounting irregularities - tax evasion, theft and commercial dispute. The concluding chapter sets out the deterrents to accounting irregularities in two dimensions. At the micro-level, deterrents are implemented within the authority of the organization in question, whilst the macro-level deterrents refer to the external environment beyond the controls of any individual organization.
Table of Contents
Contents: Overview of financial reporting environments; Basics of accounting irregularitites; Selling more; Costing less; Owning more; Owing less; Presenting it better; Other types of accounting irregularities; Deterrents to accounting irregularities; Glossary of Terms; Index.
Benny K B Kwok, AHIREA AMAMI BSc CFE CPM FCA FCPA FTIHK ICIOB MAHI MAICD MBA MCIJ MHKIM MHKIoD MRICS As a reputable expert in litigation support, dispute analysis and fraud investigation, Benny's experience during the last two decades covered two of the Big-Four accounting firms, the Audit Commission and Abbey National Bank. Benny operates an independent practice as Chartered Surveyor, Chartered Accountant, Certified Fraud Examiner and Certified Practising Marketer, and is a member of 15 professional institutions in Hong Kong, Australia, the UK and the USA. Benny has published more than 100 papers throughout the world and has delivered more than 50 professional seminars for the Hong Kong Government and several institutions. Benny currently holds a number of commercial/public appointments, including the Adjudicator to the Obscene Articles Tribunal, the Member of the Board of Review and the Member to the Solicitors' Disciplinary Tribunal. Benny is also the author of another authoritative title Forensic Accountancy published by LexisNexis Butterworths.
'The simple language, use of case studies and concise and helpful checklist conclusions mean that this book provides an overview of the principles of accounting for a student or professional....If you are an accountant in a large corporation who is bogged down by procedures, this book serves as a refreshing reminder of why they are in place.' Accounting Technician