Star Electronics, Inc.: An Excel Based Case Using Financial Statement Analysis To Detect Fraud

Abstract

The demand for forensic accounting within the corporate world is continually increasing. The services performed by forensic accountants help detect and prevent fraud within companies. This case is a study of forensic accounting that utilizes fraud methodology and detection techniques through a simulation engagement. Those who complete this case will proceed through a series of procedures that will lead to the formulation of potential fraudulent activity within the discussed company. The addressed procedures include: understanding the business, determining the areas that may be susceptible to fraud, performing analytical procedures to detect fraud, and creating a report to the board of directors as a follow up to any potential red flags found during the performed testing.