Financial Analysis and Investigation

Objectives:

• Apply the framework of financial statements analysis.
• Demonstrate skills at the foundations of ratio and financial analysis.
• Carry out company and industry analysis.
• Implement the process of company evaluation and analysis.
• Analyse real-life financial statements from companies traded on the world and GCC stock exchanges.
• Describe the nature of fraud and the fraudster
• Identify relevant legislation in relation to fraud investigations
• Identify specialist agencies to support fraud investigations
• Maximise existing skills within fraud investigations
• Manage fraud investigations
• An understanding of how to safely secure and package exhibits recovered in an investigation and label them correctly for continuity and court purposes

Outlines:

Financial Statements and Business Decisions

• Accounting and Financial Systems
• Four Key Financial Statements
• Relationship among the Financial Statements
• Management Uses of Financial Statements
• Essential Notes to the Financial Statements

Financial Statement Analysis: An Introduction

• Role of Financial Reporting and Analysis
• The Core Financial Statements and the Importance of the Annual Report
• The Important Role of Notes and Supplementary Information
• Objective and Types of Audits of Financial Statements
• Financial Statement Analysis Framework
• The Accounting Cycle
• Financial Reporting Mechanics
• Relationship, Elements and Classification of Financial Statements

Financial Reporting Standards

• Importance of Reporting Standards in Security Analysis and Valuation
• The Standards Setting Bodies
• International Financial Reporting Standards versus Generally Accepted Accounting Principles

Understanding Financial Statements

• Income Statement Components
• Revenue and Expense Recognition
• Balance Sheet Components:
• Measurement and Classification
• Cash Flow Statement:
• Operating, Investing, and Financing Activities
• Direct versus Indirect Methods in Cash Flow Preparation

Financial Analysis Techniques

• Ratio Analysis
• Liquidity: Current, Quick, and Cash Ratios
• Asset Management and Activity Ratios
• Solvency: Debt, Equity, and Times Interest Earned Ratios
• Profitability: Profit Margin, Gross Margin, Return on Assets, Return on Equity
• Market and Valuation: Price-Earnings and Earnings Per Share Ratios
• Vertical Analysis and Strategy: Balance Sheet and Income Statement Approaches
• Trend Analysis and Growth
• DuPont Analysis: The Three-Step and Five-Step Models
• Time-Series and Cross-Sectional Analysis
• Limitation of Ratio Analysis

Financial Statement Analysis: Applications and Presentations

• Evaluating a Company’s Past Performance
• Comprehensive Real-Life Analysis of Publicly Traded Companies

Nature and Profile of the Fraudster / Victims

• To understand how the opportunities for fraud occur
• To understand the behaviour of a fraudster
• To identify the profile of those involved in occupational fraud
• To enable the delegate to understand the nature and scale of Fraud and roles and responsibilities of other agencies
• To be able to recognise the different types and classifications of Fraud
• To be able to explain the impact of Fraud on local and national communities

Core Investigative Skills

• To understand the investigative mindset in volume and priority fraud investigations
• To recognise investigative skills sets applicable to fraud investigations
• Rules of evidence
• To identify and prioritise decision log entries
• To develop investigation plans giving focus, direction and clarity to fraud investigations
• To identify best practice from both the simulated and original investigations

Golden Hour for Fraud

• To understand and apply golden hour principles unique to volume and priority fraud investigations
• To understand the importance of case conclusion and applying lessons learnt through structured debriefs
• To understand suspect management in fraud investigations
• To understand the need for fraud policy files (Decision logs)
• Fraud management
• Evidence recovery

Witness and Suspect Interviews

• Use and understand the PEACE model for interviewing Witnesses and suspects
• Plan and preparing for an interview
• How to combat problems in interviews
• Blocks to communication
• Principles of Interviews
• Communication skills

Combating Fraud. So, What Do We Do Now?

• Do’s and don'ts within investigations
• Victim management
• Structured statement writing
• Occupational fraud
• Spotting the warning signs
• How to prevent fraud?