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 Examinationis 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.
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Last revised: 6/9/2008 10:22 AMComments on this webpage, contact: Ronald Feinberg
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