forensic accounting
DESCRIPTION
case study of forensic accounting. AnalysisTRANSCRIPT
FORENSIC ACCOUNTING
TERGORES HATI SDN BHDCASE STUDY
GROUP 1GROUP MEMBERS
SHAHFIZAN LHDNRUBHENDRANJKDMAL AZRI JKDMNASEER JKDMAZEEM KPDNKKROZILA JKDMTARIQ JKDM
PRESENTATION OUTLINES1. Analysis tools;
Vertical Analysis Horizontal Analysis Ratio Analysis
2. Graphs3. Fraud Issues4. Red Flags5. Conclusion
VERTICAL ANALYSIS
HORIZONTAL ANALYSIS
RATIO ANALYSIS
GRAPH
GRAPH
FRAUD ISSUES1. From 2008 to 2011 there is a trend of
declining revenue seems to show the following risk indicators.
1. Tax evasion2. Embezzlement of company funds.
2. Rising debt to assets ratio.1. Manipulation of asset cost.
3. A several year trend of declining gross, operating, net and free cash flow margins.
RED FLAGSdeclining revenue from 2008-
2011
RED FLAGS
Rising debt to asset ratio.
2011 2010 2009 2008
RED FLAGS A several year trend of
declining gross, operating, net and cash flow margins.
Cost of goods sold is higher than revenue.
COST is higher than
REVENUE
RED FLAGS GP Margin Profit margin
CASH FLOW ANALYSIS
2011
2010 2009 2008
CONCLUSIONBased on the financial fraud detection need to
establish forensic evidence on: Internal control of the organizationFinancial reportTrend of businessImproper disclosure Overriding controlCircumstances evidence
Based on the above we believed financial reporting fraud has occurred, therefore criminal proceeding has to be instituted.