// Fraud schemes
Net worth/net income overstatement or understatement
S28
Management override via journal entries
Management records entries outside the normal processes to change reported results or conceal other schemes. This is the mechanism behind most financial statement schemes and is the focus of journal…
S30Grant or restricted-fund misuse (public sector / nonprofit)
Restricted funds or grant awards are spent on unallowable costs, charged to the wrong grant or fund, or moved between funds to cover deficits. The reported results by fund or…
S31Improper disclosures
Financial statements omit or misstate required disclosures: liability omissions, subsequent events, related-party transactions, accounting changes, and management fraud. This scheme is assessed by document review and inquiry, not by analytics…