COURSE
MASTER SYLLABUS
AUSTIN
COMMUNITY COLLEGE- Term: _____
SPECIAL
TOPICS IN ACCOUNTING - FRAUD EXAMINATION
Instructor:
__________
ACNT
1391-Section_____ (Synonym_________)
COURSE INFORMATION
Lecture: (3 Hrs) Course dates and times
Room: Course location
INSTRUCTOR INFORMATION
Office hours: Office
hour times and location; Please contact the instructor if you wish to meet
outside of regular office hours
Email:
Phone:
Blackboard site: http://acconline.austincc.edu
PREREQUISITE:
ACNT 2303 -
Intermediate Accounting I or the equivalent
METHOD
OF INSTRUCTION: Three-hour
lecture/discussion each week
CATALOG DESCRIPTION: Course will provide an overview of how
and why occupational fraud is committed, the principles and methodologies of
prevention, detection and investigation of fraud using accounting, auditing and
investigative skills.
REQUIRED TEXT AND MATERIALS: http://www.austincc.edu/accting
OTHER: Basic computer skills utilizing the
internet, spreadsheets, word-processing and presentation software are required
for this course. Generally all assignments are to be prepared on the computer
and presented in a format that would be acceptable that is appropriate in a
business environment. Access to computers is available at the college.
COURSE RATIONALE: The goals and
objectives of this course prepare students for (1) completing degree
requirements; (2) obtaining or improving job skills; (3) qualifying for a
business or accounting job; (4) working as an entrepreneur; (5) fulfilling
personal goals; and/or (6) understanding fraud examination
INSTRUCTIONAL METHODOLOGY: The objectives of this course will be met by incorporating a
variety of instructional methods. These
include a combination of lecture, class quizzes, class exams, homework,
research activities, and videos.
SCANS COMPETENCIES (SCANS)
SCANS competencies have been
identified that are relevant to the level of instruction in the community college
environment. These competencies reflect the knowledge and skills
employees need to succeed in any occupation. A complete definition
and explanation of SCANS can be found at http://www.austincc.edu/mkt/scans.php. The following SCANS are specifically addressed in
ACNT 1391:
Manages
Time: Selects relevant, goal-related activities, ranks them in order
of importance, allocates time to activities, and understands, prepares, and
follows schedules.
Acquires
and Evaluates Information: Identifies need for data, obtains it
from existing sources or creates it, and evaluates its relevance and accuracy.
Problem
Solving: Recognizes that a problem exists (ie., there is a discrepancy
between what is and what should or could be), identifies possible reasons for
the discrepancy, and devises and implements a plan of action to resolve it.
Evaluates and monitors progress, and revises plan as indicated by findings.
Reasoning: Discovers a rule or principle underlying the relationship between
two or more objects and applies it in solving a problem. For example, uses
logic to draw conclusions from available information, extracts rules or
principles from a set of objects or written text; applies rules and principles
to a new situation, or determines which conclusions are correct when given a
set of facts and a set of conclusion.
Responsibility: Exerts a high level of effort and perseverance towards goal
attainment. Works hard to become excellent at doing tasks by setting high
standards, paying attention to details, working well and displaying a high
level of concentration even when assigned an unpleasant task. Displays high
standards of attendance, punctuality, enthusiasm, vitality, and optimism in
approaching and completing tasks.
PROGRAM-LEVEL STUDENT LEARNING
OUTCOMES: Upon successful completion of the
Accounting program, students will be able to:
COURSE OBJECTIVES: Upon completion of ACNT 1391 the student
shall:
1. Understand the nature of financial fraud and
the motivations of people committing fraud.
2. Understand the role of the accountant in the
prevention, detection, and investigation of fraud.
3. Differentiate amount different types of fraud
schemes.
4. Analyze methods for detecting and
investigating fraud schemes.
5. Understand what types of internal controls
may be used to help deter and detect fraud schemes
6. Understand techniques to detect financial
statement fraud
LEARNING OBJECTIVES (These are derived
from the text and are edited for changes in the auditing and accounting
profession though the publication of the syllabus)
Chapter 1:
1-1 Define fraud
examination and differentiate it from auditing
1-2 Understand the
fraud theory approach
1-3 Define
occupational fraud
1-4 Define fraud
1-5 Define abuse
1-6 Know the
difference between fraud and abuse
1-7 Describe the
criminological contributions of Edwin H. Sutherland
1-8 Understand
Donald Cressey’s hypothesis
1-9 Give examples of
nonshareable problems that contribute to fraud
1-10 Understand how
perceived opportunity and rationalization contribute to fraud
1-11 Explain W. Steve
Albrecht’s ‘‘fraud scale’’
1-12 Summarize the
conclusions of the Hollinger-Clark study
1-13 Summarize the
findings in the 2010 Report to the Nations on Occupational
Fraud
and Abuse
Chapter 2:
2-1 Define skimming
2-2 List and
understand the two principal categories of skimming schemes
2-3 Understand how
sales skimming is committed and concealed
2-4 Understand
schemes involving understated sales
2-5 Understand how
cash register manipulations are used to skim currency
2-6 Be familiar with
how sales are skimmed during nonbusiness hours
2-7 Understand the
techniques discussed for preventing and detecting sales
skimming
2-8 List and be able
to explain the six methods typically used by fraudsters to
conceal receivables skimming
2-9 Understand what
‘‘lapping’’ is and how it is used to hide skimming schemes
2-10 Be familiar with
how fraudsters use fraudulent write-offs or discounts to
conceal skimming
2-11 Understand the
techniques discussed for preventing and detecting receivables
skimming
2-12
Be
familiar with proactive audit tests that can be used to detect skimming
Chapter 3:
3-1 Define cash
larceny
3-2 Understand how
cash receipts schemes differ from fraudulent disbursements
3-3 Recognize the
difference between cash larceny and skimming
3-4 Understand the
relative frequency and cost of cash larceny schemes as
opposed to other forms of cash
misappropriations
3-5 Identify
weaknesses in internal controls as inducing factors to cash larceny
schemes
3-6 Understand how
cash larceny is committed at the point of sale
3-7 Discuss measures
that can be used to prevent and detect cash larceny at the
point of sale
3-8 Understand and
identify various methods used by fraudsters to conceal cash
larceny of receivables
3-9 Understand
schemes involving cash larceny from deposits including lapping
and deposits in transit
3-10 Understand
controls and procedures that can be used to prevent and detect
cash larceny from bank deposits
3-11 Be familiar with
proactive audit tests that can be used to detect cash larceny
Schemes
Chapter 4:
4-1 List the five
major categories of fraudulent disbursements
4-2 Define billing
schemes
4-3 List the three
categories of billing schemes
4-4 Understand what
a shell company is, and how it is formed
4-5 List and
understand the four ways false invoices are approved for payment
4-6 Understand why
most shell company schemes involve the purchase of
services rather than goods
4-7 Understand how a
pass-through scheme differs from the usual shell company
schemes
4-8 Be familiar with
the methods identified in this chapter for preventing and
detecting shell company schemes
4-9 Understand how
pay-and-return schemes work
4-10 Understand how
non-accomplice vendor schemes work
4-11 Be familiar with
the methods identified in this chapter for preventing and
detecting non-accomplice vendor
schemes
4-12 Understand how
personal purchases schemes work
4-13 Be familiar with
the methods identified in this chapter for preventing and
detecting personal purchases
schemes
4-14
Be
familiar with proactive audit tests that can be used to detect billing schemes
Chapter 5:
5-1 Define check
tampering
5-2 Understand the
five principal categories of check tampering
5-3 Detail the means
by which employees fraudulently obtain company checks
5-4 Understand how
forged signatures are created on blank check stock
5-5 Be familiar with
the methods identified in this chapter for preventing and
detecting forged maker schemes
5-6 Differentiate
between forged maker and forged endorsement schemes
5-7 Detail the
methods employees use to intercept outgoing checks before they
are delivered to the intended
payee
5-8 Be able to
discuss methods that can be used to prevent and detect the theft
and alteration of outgoing
company checks
5-9 Understand how
authorized maker schemes work and why they are especially
difficult to prevent
5-10 Explain how
check tampering is hidden in a company’s accounting records
5-11 Describe
measures companies can take to prevent and detect fraudulent
electronic payments
5-12 Be familiar with
proactive audit tests that can be used to detect check
Tampering
Chapter 6
6-1 List and
understand the three main categories of payroll fraud
6-2 Understand the
relative cost and frequency of payroll frauds
6-3 Define a ghost
employee
6-4 List and
understand the four steps of making a ghost employee scheme work
6-5 Understand how
separation of duties in payroll and human resources
functions can reduce the threat
of payroll fraud
6-6 Be familiar with
methods identified in this chapter for preventing and
detecting ghost employee schemes
6-7 List and
understand the four ways that employees can obtain authorization for
a falsified timecard in a manual
system
6-8 Understand the
role that payroll controls play in preventing falsified hours and
salary schemes
6-9 Discuss the
methods identified in this chapter for preventing and detecting
falsified hours and salary
schemes
6-10 Understand how
employees commit commission schemes
6-11 Identify red
flags that are typically associated with commission schemes
6-12 Be familiar with
proactive audit tests that can be used to detect various forms
of
payroll fraud
Chapter 7:
7-1 Explain what constitutes
expense reimbursement fraud
7-2 Discuss the data
on expense reimbursement fraud from the 2009 Global Fraud
Survey
7-3 Understand how
mischaracterized expense reimbursement schemes are
committed
7-4 Be familiar with
the controls identified in this chapter for preventing and
detecting mischaracterized
expense schemes
7-5 Identify the
methods employees use to overstate otherwise legitimate
expenses on their expense reports
7-6 Understand
controls that can be used to prevent and detect overstated
expense schemes
7-7 Explain what a
fictitious expense reimbursement scheme is and differentiate it
from other forms of expense
reimbursement fraud
7-8 Identify red
flags that are commonly associated with fictitious expense
schemes
7-9 Discuss what a
multiple reimbursement scheme is and how this kind of fraud
is committed
7-10 Discuss the
controls identified in this chapter for preventing and detecting
multiple reimbursement schemes
7-11 Be familiar with
proactive audit tests that can be used to detect various forms
of
expense reimbursement fraud
Chapter 8:
8-1 Explain what
constitutes a register disbursement scheme
8-2 Differentiate
register disbursements from skimming and cash larceny schemes
8-3 List the two
basic categories of register disbursements
8-4 Explain how
false refund schemes are committed
8-5 Explain how
false void schemes are committed
8-6 Understand how
register disbursement schemes cause shrinkage
8-7 Discuss the
methods by which fraudulent register disbursements are concealed
8-8 Understand the methods
identified in this chapter for preventing and detecting
register disbursement schemes
8-9 Be familiar with
proactive audit tests that can be used to detect register
disbursement
schemes
Chapter 9:
9-1 List the five
categories of tangible noncash misappropriations discussed in
this chapter
9-2 Discuss the data
on noncash misappropriations from the 2009 Global Fraud
Survey
9-3 Explain how
misuse of noncash assets can negatively affect organizations
9-4 Understand how
and why unconcealed larceny of noncash assets occurs
9-5 Be familiar with
internal controls and tests that can be used to prevent and
detect noncash larceny
9-6 Understand how
weaknesses in internal asset requisition and transfer
procedures can lead to the
misappropriation of noncash assets
9-7 Explain how
purchasing and receiving schemes are used to misappropriate
noncash assets
9-8 Understand how
the theft of noncash assets through the use of fraudulent
shipments is accomplished
9-9 Define shrinkage
9-10 Describe how
fraudsters conceal the theft of noncash assets on the victim
organization’s books
9-11 Understand how
employees can misappropriate intangible assets, as well as
how companies can protect
themselves from such schemes
9-12 Be familiar with
proactive audit tests that can be used to detect
misappropriations
of noncash assets
Chapter 10:
10-1 Define
corruption
10-2 Identify the
four categories of corruption
10-3 Define bribery
10-4 Compare and
contrast bribery, extortion, and illegal gratuities
10-5 Identify the two
categories of bribery schemes
10-6 Understand
kickback schemes and how they are committed
10-7 Understand
bid-rigging schemes and explain how they are categorized
10-8 Describe the
types of abuses that are committed at each stage of the
competitive bidding process
10-9 Be familiar with
the controls and techniques that can be used to prevent and
detect bribery
10-10 Define conflicts
of interest
10-11 Differentiate
conflicts of interest from bribery schemes and billing schemes
10-12 List and
understand the two major categories of conflicts of interest
10-13 Be familiar with
proactive audit tests that can be used to detect corruption
Schemes
Chapter 11:
11-1 Define fraud as
it relates to financial statements
11-2 Identify the
three main groups of people who commit financial statement fraud
11-3 List the three
primary reasons people commit financial statement fraud
11-4 Describe the
three general methods used to commit financial statement fraud
11-5 Define
overstatements
11-6 Define
understatements
11-7 Describe the
conceptual framework for financial reporting
11-8
List
examples of various types of financial statements
Chapter 12:
12-1 Define financial
statement fraud and related schemes
12-2 Understand and
identify the five classifications of financial statement fraud
12-3 Explain how
fictitious revenues schemes are committed, as well as the
motivation for, and result of,
committing such fraud
12-4 Explain how
timing difference schemes are committed, as well as the
motivation for, and result of,
committing such fraud
12-5 Describe the
methods by which concealed liabilities and expenses are used
to fraudulently improve a
company’s balance sheet
12-6 Understand how
improper disclosures may be used to mislead potential
investors, creditors, or other
users of the financial statements
12-7 Recognize how
improper asset valuation may inflate the current ratio
12-8 Identify
detection and deterrence procedures that may be instrumental in
dealing with fraudulent financial
statement schemes
12-9 Understand
financial statement analysis for detecting fraud
12-10 Identify and
characterize current professional and legislative actions that
have sought to improve corporate
governance, enhance the reliability and
quality of financial reports, and
foster credibility and effectiveness of audit
functions
Chapter 13:
13-1 Describe the
factors that influence an organization’s vulnerability to fraud
13-2 Explain the
difference between preventive and detective controls
13-3 Define and
explain the objective of a fraud risk assessment
13-4 Discuss why
organizations should conduct fraud risk assessments
13-5 Understand the
characteristics of a good fraud risk assessment
13-6 Describe
considerations for developing an effective fraud risk assessment
13-7 List actions
that should be taken to prepare a company for a fraud risk
assessment
13-8 Understand the
steps involved in conducting a fraud risk assessment and
how to apply a framework to them
13-9 Describe
approaches to responding to an organization’s residual fraud risks
13-10 Name important
considerations when reporting the results of a fraud risk
assessment
13-11 List actions
management should take using the results of a fraud risk
assessment
13-12 Explain how a
fraud risk assessment can inform and influence the audit
Process
Chapter 14:
14-1 Understand the circumstances
that may necessitate an internal investigation
14-2 Identify who
should be part of a. fraud examination team
14-3 Define evidence
14-4 Be familiar with
several evidence-gathering techniques
14-5 Understand the
considerations and concerns related to preserving
documentary evidence
14-6 Understand the
importance of and methods for organizing documentary
evidence
14-7 Identify several
sources of evidence and the types of information each can
provide
14-8 Be familiar with
the standard format and requirements for a professional
investigation
report
Chapter 15:
15-1 List the five
types of interview questions
15-2 Understand how
to ask introductory questions
15-3 Explain how to
construct informational questions
15-4 Understand the
differences between open, closed, and leading questions
15-5 Explain how to
close an interview
15-6 Define and
explain the purpose of assessment questions
15-7 List some
nonverbal clues to deception
15-8 List some verbal
clues to deception
15-9 Discuss the
methodology of admission-seeking questions
15-10
List
the elements of a signed statement
Chapter 16: (As time allows)
COURSE GRADING, BASIS
FOR GRADING:
Activity (Percent)- See the section syllabus for more details
Exams/Quizzes (65-80%)
Class
Activities/Research/Homework/Videos (20-35%)
ACC
POLICIES:
Attendance/Class Participation
Regular and punctual class and laboratory
attendance is expected of all students.
If attendance or compliance with other course policies is
unsatisfactory, the instructor may withdraw students from the class. See the section syllabus for more details.
Withdrawal Policy
It is the responsibility of each student to ensure that his or her
name is removed from the roll should he or she decide to withdraw from the
class. The instructor does, however,
reserve the right to drop a student should he or she feel it is necessary. If a student decides to withdraw, he or she
should also verify that the withdrawal is submitted before the Final
Withdrawal Date. The student is also
strongly encouraged to retain their copy of the withdrawal form for their
records. See the section syllabus for
more details.
Students
who enroll for the third or subsequent time in a course taken since Fall, 2002,
may be charged a higher tuition rate, for that course.
State
law permits students to withdraw from no more than six courses during their
entire undergraduate career at Texas public colleges or universities. With certain exceptions, all course
withdrawals automatically count towards this limit. Details regarding this policy can be found in
the ACC college catalog.
Incompletes
An instructor may award a grade of “I” (Incomplete)
if a student was unable to complete all of the objectives for the passing grade
in a course. An incomplete grade cannot
be carried beyond the established date in the following semester. The
completion date is determined by the instructor but may not be later than the
final deadline for withdrawal in the subsequent semester. See the section
syllabus for more details.
Statement on Scholastic Dishonesty
A
student attending ACC assumes responsibility for conduct compatible with the
mission of the college as an educational institution. Students have the responsibility to submit
coursework that is the result of their own thought, research, or self-expression. Students must follow all instructions given
by faculty or designated college representatives when taking examinations,
placement assessments, tests, quizzes, and evaluations. Actions constituting scholastic dishonesty
include, but are not limited to, plagiarism, cheating, fabrication, collusion,
and falsifying documents. Penalties
for scholastic dishonesty will depend upon the nature of the violation and may
range from lowering a grade on one assignment to an “F” in the course and/or
expulsion from the college. See the
Student Standards of Conduct and Disciplinary Process and other policies at http://www.austincc.edu/current/needtoknow
Student Rights and Responsibilities (Academic Freedom)Students at the college have the rights accorded by the U.S. Constitution to freedom of speech, peaceful assembly, petition, and association. These rights carry with them the responsibility to accord the same rights to others in the college community and not to interfere with or disrupt the educational process. Opportunity for students to examine and question pertinent data and assumptions of a given discipline, guided by the evidence of scholarly research, is appropriate in a learning environment. This concept is accompanied by an equally demanding concept of responsibility on the part of the student. As willing partners in learning, students must comply with college rules and procedures. Statement on Students with Disabilities
Each
ACC campus offers support services for students with documented disabilities.
Students with disabilities who need classroom, academic or other
accommodations must request them through the Office for Students with
Disabilities (OSD). Students are encouraged to request
accommodations when they register for courses or at least three weeks before
the start of the semester, otherwise the provision of accommodations may be
delayed.
Students
who have received approval for accommodations from OSD for this course must
provide the instructor with the ‘Notice of Approved Accommodations’ from OSD
before accommodations will be provided. Arrangements for academic
accommodations can only be made after the instructor receives the ‘Notice of
Approved Accommodations’ from the student.
Students
with approved accommodations are encouraged to submit the ‘Notice of Approved
Accommodations’ to the instructor at the beginning of the semester because a
reasonable amount of time may be needed to prepare and arrange for the
accommodations.
Additional
information about the Office for Students with Disabilities is available at http://www.austincc.edu/support/osd/
Safety Statement
Austin Community College
is committed to providing a safe and healthy environment for study and work.
You are expected to learn and comply with ACC environmental, health and safety
procedures and agree to follow ACC safety policies. Additional information on
these can be found at http://www.austincc.edu/ehs.
Because some health and safety circumstances are beyond our control, we ask
that you become familiar with the Emergency Procedures poster and Campus Safety
Plan map in each classroom. Additional information about emergency procedures
and how to sign up for ACC Emergency Alerts to be notified in the event of a
serious emergency can be found at http://www.austincc.edu/emergency/.
Please note, you are expected to conduct
yourself professionally with respect and courtesy to all. Anyone who
thoughtlessly or intentionally jeopardizes the health or safety of another
individual will be dismissed from the day’s activity, may be withdrawn from the
class, and/or barred from attending future activities.
You are expected to conduct yourself professionally with respect
and courtesy to all. Anyone who thoughtlessly or intentionally jeopardizes the
health or safety of another individual will be immediately dismissed from the
day’s activity, may be withdrawn from the class, and/or barred from attending
future activities.
Use of ACC email
All
College e-mail communication to students will be sent solely to the student’s
ACCmail account, with the expectation that such communications will be read in
a timely fashion. ACC will send important information and will notify you of
any college related emergencies using this account. Students should only expect to receive email
communication from their instructor using this account. Likewise, students should use their ACCmail
account when communicating with instructors and staff. Instructions for activating an ACCmail
account can be found at http://www.austincc.edu/accmail/index.php.
Student Discipline
Classroom behavior
should support and enhance learning.
Behavior that disrupts the learning process will be dealt with
appropriately, which may include having the student leave class for the rest of
the day. In serious cases, disruptive
behavior may lead to a student being withdrawn from the class. ACC's policy on student discipline can be
found in the Student Handbook:
www.austincc.edu/handbook
Student and Instructional Services
ACC strives to provide exemplary support
to its students and offers a broad variety of opportunities and services. Information on these services and support
systems is available at:
hppt://www.austincc.edu/s4/
Testing Center Policy
Under certain circumstances, an instructor may have students take
an examination in a testing center. Students
using the Academic Testing Center must govern themselves according to the
Student Guide for Use of ACC Testing Centers and should read the entire guide
before going to take the exam. To
request an exam, one must have:
Do
NOT bring cell phones to the Testing Center.
Having your cell phone in the testing room, regardless of whether it is
on or off, will revoke your testing privileges for the remainder of the
semester. ACC
Testing Center policies can be found at http://www.austincc.edu/testctr/
MISSED OR LATE WORK: See the section syllabus for more details
COURSE
OUTLINE/CALENDAR: See the section syllabus for more
details