The Application of Forensic Accounting on the specific case’s financial statement misstatement

• Main Authors: Chao, Po-Chi, 趙柏棋
• Other Authors: Ma, Chia-Ying
• Format: Others
• Language: zh-TW
• Published: 2015
• Online Access: http://ndltd.ncl.edu.tw/handle/ta9f9w

碩士 === 國立中正大學 === 會計資訊與法律數位學習碩士在職專班 === 103 === This study was to review previous research on forensic accounting (both domestic or foreign) and extend the government's analyses on the professional organization, service coverage, regulations, and talent cultivation related to forensic accounting, with the goal of providing references for introducing forensic accounting to the government. This study explored a specific company’s financial statements and found the key elements of material financial statement misrepresentation of. This study further focused on whether forensic accounting could be used to detect financial statement frauds beforehand, develop detection mechanisms for financial crime inspection, and to establish a sound financial market to protect investors and enterprises. Based on the PEWC fraud, this study found the possibilities of prior misinterpretation detection of financial statements and the results were as the following: 1. Concealing the investment information of overseas dummy corporations and banks. 2. Using inaccurate certificate of deposit to offset disbursements. 3. Concealing the embezzlement of sold asset or asset paid by debtors. 4. Issuing Floating Rate Note (FRN). 5. Concealing endorsement in financial statements. 6. CPE settlement of exempted debt. 7. Prior period adjustments of the company's financial statements. 8. Personal income payment masked as payment to administrative expenses of Hong Yi Corp. 9. Actual borrowing behavior disguised through borrowing money for material purchase. 10. Using fraudulent deals to inflate business portfolio for illegal profits.