Instructor: __________

ACNT 1391-Section_____ (Synonym_________)




Lecture:  (3 Hrs)                 Course dates and times

Room:                                   Course location



Office hours:                       Office hour times and location; Please contact the instructor if you wish to meet outside of regular office hours                                               



Blackboard site:


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.


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 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 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


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


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


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


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


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


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


7-3 Understand how mischaracterized expense reimbursement schemes are


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


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


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


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


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


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


13-11 List actions management should take using the results of a fraud risk


13-12 Explain how a fraud risk assessment can inform and influence the audit


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


14-7 Identify several sources of evidence and the types of information each can


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)



Activity (Percent)-  See the section syllabus for more details

Exams/Quizzes  (65-80%)

Class Activities/Research/Homework/Videos (20-35%)



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.


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

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


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 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

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

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:

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://


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

MISSED OR LATE WORK:  See the section syllabus for more details


COURSE OUTLINE/CALENDAR: See the section syllabus for more details