Course Description:

This course is based on two recent financial statement fraud cases; Dewey & LeBouef and ContinuityX.  Dewey & LeBouef was a high-profile law firm that, at its peak, had over 3,000 employees and over 1,400 lawyers.  It is alleged that personnel at Dewey & LeBouef made inappropriate financial adjustments starting in 2008 to meet its bank lending covenants and planned to conceal these adjustments from its “clueless auditor”.  Dewey & LeBouef declared bankruptcy in 2012.  

ContinuityX was an internet services reseller that, according to an SEC complaint, fabricated 99% of its revenue.  It was audited by a firm that was fined and disciplined by the SEC and the partner responsible for the audit was also fined and permanently suspended from practicing before the SEC.  ContinuityX declared bankruptcy in 2013.

Both cases involve financial statement fraud, auditor deception and some lessons to be learned. 

Learning Objectives

Upon completion of this course, you should be able to:

·         Recognize the primary elements of financial statement fraud in the Dewy & LeBouef and ContinuityX cases

·         Associate the primary elements of financial statement fraud in the cases in this course with audit procedures that may have detected the fraud

Prerequisites: None

Level: Overview

NASBA Category: Auditing

Recommended CPE:  1 Hour

Additional Contents : Complete, no additional material needed
Advance Preparation : None
Intended Participants : Any CPA looking to maintain or enhance their professional competence
Course Declaration : Participants must complete the final examination within one year of purchase. A minimum passing grade of 70% or better is required to receive CPE
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