Suffolk County Community College

SUFFOLK COUNTY COMMUNITY COLLEGE
COLLEGE-WIDE COURSE SYLLABUS

  I.        COURSE TITLE: Fraud Examination
  
 II.        CATALOG DESCRIPTION: 2006 – 2008
            Fraud examination will cover the principles and methodology of fraud detection
            and deterrence. The course includes such topics as skimming, cash larceny,
            check tampering, register disbursement schemes, billing schemes, payroll
            and expense reimbursement schemes, non-cash misappropriations,
            corruption, accounting principles and fraud, fraudulent financial statements,
            and interviewing witnesses.
 
III.       GOALS OF THE COURSE:
           The accounting faculty will assist accounting and non-accounting majors to
           achieve the desired learning outcomes listed below.  In addition, the faculty
           will provide an opportunity for all students to develop, improve, expand and
           practice their written and oral communication, teamwork, research, analytical
           and decision-making skills.
 
           To that end, upon successful completion of the course, students will have the
           ability to:

           A.    Identify, measure and communicate information about accounting frauds
                  to interested parties.
           B.    Explain how the problem of fraud has grown in size and scope.
           C.    Identify some of the challenges facing fraud examination.
           D.    Identify the objectives of fraud examination.
           E.    Explain the need for fraud detection and prevention.
           F.    Identify the major policy-setting bodies involved in fraud examination and
                  their role in the standard-setting process.
 
 IV.     STUDENT LEARNING OUTCOMES:
           Upon successful completion of ACC145 – Fraud Examination students
           will be able to:

            A.   Understand the seriousness of the fraud problem.
            B.   Understand how skimming is committed and concealed.
            C.   Understand what “lapping” is and how it is used by fraudsters to conceal
                  receivables skimming.
            D.   Identify cash larceny.
            E.   Understand how cash receipts schemes differ from fraudulent
                  disbursements.
            F.   Identify weaknesses in internal controls as inducing factors to cash
                  larceny.
            G.   Identify the five major categories of fraudulent disbursements.
            H.   Understand proactive audit tests that can be used to detect billing
                  schemes.
             I.   Understand how check tampering is hidden in a company’s accounting
                  records.
            J.    Identify fraud in financial statements.
            K.   Understand fraud deterrence.
            L.    Understand and detect concealed liabilities and expenses.
            M.   Identify red flags associated with fictitious revenues.
 
  V.       ACADEMIC PROGRAMS THAT REQUIRE AC26
            Fraud Examination is not required by any degree program, however,
            it is offered as an elective in these programs:
                    Accounting:    A.S. Degree
                    Accounting: A.A.S. Degree       
 
 VI.        MAJOR TOPICS REQUIRED (37½  Hours)

             UNIT ONE: INTRODUCTION TO FRAUD (3 hours approximately)
             Addresses the following questions: What is fraud? What are the various
             types of fraud? Who commits fraud? What is the Fraud Triangle? How does
             one fight fraud?

             UNIT TWO: FRAUD PREVENTION (6 hours approximately)
             Addresses the following questions: How does one create a culture of honesty,
             openness, and assistance? How does a company create a positive work
             environment? How can an company eliminate opportunities for fraud? What
             comprises a good system of Internal Controls? What is collusion and how
             can a company discourage it?  How can a company provide “whistle-blowing
             mechanisms”?

             UNIT THREE: FRAUD DETECTION (5 hours approximately)
             Addresses the following questions: What are the symptoms of fraud? What
             accounting anomalies should a company be alert for? What are typical
             internal control weaknesses? How should a company handle tips and
             complaints?

             UNIT FOUR: PROACTIVE APPROACHES TO DETECTING FRAUD
             (4 hours approximately)
             Includes the following: Commercial data-mining software. Digital analysis of
             company databases. Analyzing Financial Statements. Detecting and
             identifying fraud perpetrators.

             UNIT FIVE: FRAUD INVESTIGATION (5 hours approximately)
             Includes the following: Theft investigative methods. Coordinating an
             investigation. Surveillance and covert operations. Physical evidence.
             Concealment methods. Aspects of documentary evidence. Document
             experts. Government sources of information. Private sources of information.
             Online databases. The “net worth method”.

             UNIT SIX: INQUIRY METHODS AND FRAUD REPORTS
             (4 hours approximately)
             Includes the following: Honesty testing. Pencil and paper tests.
             Characteristics of a good interview. Planning an interview. The language of
             the interview. Mechanics of the interview. Question sequence. Observing
             respondent reactions.

             UNIT SEVEN: MANAGEMENT FRAUD (3 hours approximately)
             Includes the following: The problem of Financial Statement fraud. The nature
             of Financial Statement fraud. Motivations for Financial Statement fraud.
             Management and the Board of Directors.


             UNIT EIGHT: FINANCIAL STATEMENT FRAUD (2.5 hours approximately)
             Addresses the following questions: What types of funds involve business-
             type activities? What are the three basic statements of proprietary fund
             accounting? What are internal service funds and how are they accounted for?
             How are proprietary funds accounted for?


VII.       STUDENT LEARNING ASSESSMENT (5  HOURS):

            A.   Assessment tools include traditional, in-class examinations (including
                  short-answer and essay), writing assignments, in-class group oral
                  presentations, and a research project. It is strongly suggested that in
                  addition to any other assignments, there be at least three (3) full-period
                  examinations.

            B.   It is recommended that faculty create a student centered learning
                  environment including the use of teams, student presentation and the
                  liberal use of computers. It is recommended that faculty integrate
                  computer technology in their teaching methodology including web
                  based assignments.

            C.   The Accounting Department endorses the college’s “Writing to Learn”
                  initiative and strongly recommends that a writing component be included
                  in all accounting courses.

 
 VIII.     SPECIAL INSTRUCTIONS:
             AC 11 is a prerequisite for ACC145

   IX.     SUPPORTING INFORMATION:
             A wide assortment of appropriate visual aids are available through the college
             library system and/or the campus departments. Contemporary periodicals
             including The New York Times, Wall Street Journal, business magazines,
             Internet sources and on-line textbooks support also serve as useful teaching
             and learning resources.