ACCT 510 Internal Audit / Forensic Accounting. College of Charleston. Spring 2018

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Magdalene Burke
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1 ACCT 510 Internal Audit / Forensic Accounting College of Charleston Spring 2018 Instructor: David L. Coss, Ph.D., Office: Tate 314 Office hours: MW 10:00 12:00 Office phone: cossdl@cofc.edu Classes: 12:00 pm 12:50 pm MWF Beatty Center COURSE DESCRIPTION: ACCT Internal Audit / Forensic Accounting This course provides a solid foundation for building skills in internal auditing and forensic accounting techniques, including gathering, interpreting, and documenting evidence. In this course we examine the investigative techniques used by accountants to conduct forensic examinations as well as the common schemes and techniques used to commit fraud. The skills acquired will enable you to assist businesses in detecting, investigating, documenting, and preventing fraud. The course also introduces you to the many professional opportunities available to forensic accountants. Prerequisite Admittance to the graduate accounting program 2. REQUIRED MATERIALS: Textbook: No textbook. All case studies and journal articles will be provided via Oaks by the professor. 3. STUDENT PREPARATION: Students are expected to complete all assigned case and journal article readings prior to the class in which they are covered. To be successful in this course you will need to be fully engaged in the course material and the class discussions. If you are not prepared to treat this course as a serious commitment, you should be prepared for a substandard grade. You paid the tuition; it s up to you to get your money's worth. Page 1

2 4. COURSE OBJECTIVES: The objectives of this course are to develop a working knowledge of: 1. Implement the best practices used by forensic accountants, including investigative techniques, standards of proof, and report format used to support their conclusions. 2. Describe the types of research and the wide array of investigations that forensic accountants are customarily engaged to conduct. 3. Discuss the various roles undertaken by forensic accountants, as well as their requirements and certifications. 4. Differentiate roles and responsibilities of the financial statement auditor and the forensic investigator. 5. Summarize the red flags used by forensic accountants to detect fraud. 6. Assess the objectives of the forensic accountant called in as part of the fraud investigation team. 7. Describe and practice professional skepticism. 8. Evaluate the fraudulent schemes commonly encountered by the forensic accountant. 9. Plan a forensic investigation by gathering and documenting evidence, including cases where there is known or suspected fraud. 10. Discuss the professional ethical responsibilities of the forensic accountant and develop appropriate recommendations or strategies for resolving potential ethical dilemmas. 11. Identify internal controls or other methods that can be used to help prevent fraud. 5. School of Business Learning Goals: At the completion of this course, the student should understand the following: Communication Skills Students will be challenged to effectively present and critique information systems (IS) principles in the accounting context. Students will also be equipped with an understanding of accounting information system audit documentation and IT audit standards. Quantitative Fluency Students will gain an understanding of how accounting information systems are utilized by management to make strategic business decisions. Students will also gain knowledge of systems analysis and design. Global and Civic Responsibility Students will become aware of the current ethical issues associated with corporate use of information and technology, and common corporate policies that address these issues. Students will gain an understanding of computer fraud and abuse, and the necessary controls for mitigating these issues. Additionally, the ethical responsibility of the accountant is emphasis through an understanding of the importance of designing an effective audit of an organization s accounting information system. Intellectual Innovation and Creativity After gaining training and exposure to database systems and the major accounting business cycles students will then design and develop an access database to be used to generate and analyze financial information. Page 2

3 Synthesis By combining IS and accounting principles, students will be gain experience integrating knowledge from complementary disciplines and applying this knowledge to the analysis, design, implementation, evaluation, and audit of accounting information systems. SCHOOL OF BUSINESS LEARNING GOALS To stimulate Communication Skills, students will prepare written documents that are technically correct and consistent with professional writing practices. Additionally the course requires students to write a research paper on a current topic in realm of forensic accounting. Global and Civic Responsibility is promoted in this course by directly examining ethical situations and requiring that students recognize and be able to appraise the ethical dilemmas involved. Students will be encouraged to engage in discourse aimed at resolution of these dilemmas utilizing relevant discipline specific knowledge. The students Intellectual Innovation and Creativity will be heightened through the examination of complex case studies that involve domestic, international, and multi-national firms. These cases will challenge the students to consider the implications of business decisions while evaluating problems and opportunities in the business environment and there by Synthesis both classroom and non-classroom learning as related to complex and comprehensive tasks. The students will be challenged to apply analytical techniques to formulate creative solutions utilizing both discipline specific knowledge as well as the students own personal experiences. ACCOUNTANCY GRADUATE PROGRAM LEARNING GOALS The course relates to the accountancy graduate program learning objective of Ethical Behavior by specifically addressing the AICPA Code of Professional Conduct and ethical dilemmas, while requiring technically correct, clear, and concise oral and written presentations which address Effective Communication. The course is designed to develop Specialized Technical Skills and Knowledge within the area of forensic accounting. Guest speakers from professional practice will be joining the students in the classroom to provide real world insights and aid in Achieving a Broadened Perspective, while the articles and cases chosen intentionally cover multinational/international firms to address the Global Dimensions of audit. 6. GRADING DISTRIBUTION: Points Available Weekly Discussions contributions 10 points) forensic accounting case study assignments 50 points) 200 Annotated Bibliography paper 200 Research Paper (5-6 pages) 200 Exam Exam Exam GRADING SCALE: Page 3

4 points A points B B points C C points D Below 600 points F a) Weekly Discussion Board: An effective and productive discussion requires the active participation of all students. Accordingly, the timely reading of assigned case studies and other materials and active participation in the discussions and analyses comprise a significant part (10%) of your final grade. A lecture will be presented on the weekly topic area each Wednesday to ensure that the key learning objectives are clearly presented and to provide a framework the online discussions. Each Friday students are required to do the weekly readings posted on OAKs, and review the discussion questions for the week. Each Monday the online discussion will be synthesized and broken down to ensure a thorough coverage of the specific topic area or if a case study was assigned groups will present their case findings. Developing opinions and learning to express those opinions in a group setting is critical to your success as a professional. Accordingly, during our in class and online discussions, you will be expected to express your thoughts and conclusions and to challenge the ideas presented within each assignment during every class. You should also feel free to challenge others (including me) on their points of views and positions taken. Although you may initially be uncomfortable with this level of participation, remember that everyone in the class is interested in your opinion and in most cases there is not just one correct answer. b) Annotated Bibliography paper. Students are required to write an annotated bibliography paper (2-3 pages that synthesize the articles assigned throughout the semester plus an additional page for each article assigned during the semester that outlines the major points of the article. c) Case study assignments: You will be responsible for completing four written cases during the semester. Depending on the case at hand these may either be a group or individual assignment based the leaning objective for the specific case. Each case is worth 50 points towards your final grade. Each case should be written as a professional report that should be addressed to your supervisor. I will be grading each case on content primarily, but I will also be assigning part of your grade to spelling, grammar, and professionalism. d) Research Paper: Students are required to write a research paper on a current forensic topic. Students must have their paper s topic approved by the professor by Jan 31st. Appropriate topics for the paper include, but are not limited to: Behavior and judgment in forensic accounting Business valuation Computer forensic analysis Page 4

5 Consumer frauds (online, other) Corruption (corporate, governmental, Foreign Corrupt Practices Act) Cross-cultural issues in fraud Data analytics Expert witness activities Ethics (judgment, behavior) Fraudulent financial reporting Governance and fraud Insurance recovery Internal controls/coso/erm Investment scams Litigation support/services Pattern recognition and anomaly detection Professional regulation and policy issues Psychology and social psychology of fraud Tax fraud (individual or corporate) Technology for detecting, investigating or committing fraud Theft of corporate assets (employees, managers, third parties) e) Exams: are designed to challenge your understanding of the course material. This includes the case studies, academic papers and class discussions. The exams will be essay questions or case study questions based on class material and discussions. A scheduled exam can only be taken at an earlier time if it is due to athletic participation or some other extracurricular activity in which the student is an official representative of the College. Appropriate documentation is required to support this claim. If, in advance, I am told that an exam will be missed due to either emergency medical attention for that student merely showing up at student health services is insufficient or a death in the student s immediate family (again, both with appropriate documentation), the exam will be considered an excused absence and arrangements can be made for a makeup exam. 7. General Policies 1. Attendance Policy: Attendance in this course is mandatory. Examinations and assigned materials will require attendance of all classroom lectures. Make-up examinations are not given. Late assignments are not accepted. If you are to be absent, assignments must be submitted prior to the due date with prior professor approval. I reserve the right to dismiss you from the course permanently if you miss more than four classes without university-approved documentation. 2. You should not walk in late for class. If unavoidable circumstances warrant you being late, please come in quietly and take a seat. If, for some extreme circumstance, you must leave the classroom, please do so silently. Eating in class, talking to classmates during class, and packing a backpack before the class has ended, is rude and disruptive behavior. Page 5

6 3. Please familiarize yourself with the College s Student Code of Conduct as you are bound by those rules in this course. Rude and disruptive behavior, sleeping, texting, and talking during the lecture are prohibited and I reserve the right to dismiss you from the course permanently if I deem your breech of the Code of Conduct severe. 4. HONOR CODE: Lying, cheating, attempted cheating, and plagiarism are violations of our Honor Code that, when identified, are investigated. Each incident will be examined to determine the degree of deception involved. Incidents where the instructor determines the student s actions are related more to a misunderstanding will handled by the instructor. A written intervention designed to help prevent the student from repeating the error will be given to the student. The intervention, submitted by form and signed both by the instructor and the student, will be forwarded to the Dean of Students and placed in the student s file. Cases of suspected academic dishonesty will be reported directly by the instructor and/or others having knowledge of the incident to the Dean of Students. A student found responsible by the Honor Board for academic dishonesty will receive a XF in the course, indicating failure of the course due to academic dishonesty. This grade will appear on the student s transcript for two years after which the student may petition for the X to be expunged. The F is permanent. The student may also be placed on disciplinary probation, suspended (temporary removal) or expelled (permanent removal) from the College by the Honor Board. Students should be aware that unauthorized collaboration--working together without permission-- is a form of cheating. Unless the instructor specifies that students can work together on an assignment, quiz and/or test, no collaboration during the completion of the assignment is permitted. Other forms of cheating include possessing or using an unauthorized study aid (which could include accessing information via a cell phone or computer), copying from others exams, fabricating data, and giving unauthorized assistance. Research conducted and/or papers written for other classes cannot be used in whole or in part for any assignment in this class without obtaining prior permission from the instructor. Students can find the complete Honor Code and all related processes in the Student Handbook at 5. CELL PHONES: a. Set your phone to ensure that it makes no noise inside of this classroom. This means, either turn it off, or to silent, but not to vibrate before entering this classroom. b. Keep the cell phone out of sight for the entire class this means do not text and do not take messages during class. c. For all tests and in-class quizzes, a cell phone is not to be used as a calculator. Texting and/or internet usage during exams or quizzes will result in a failing grade for that exam. 6. The College of Charleston complies with the Americans with Disabilities Act (ADA). If you need Page 6

7 accommodation for any disability, please let me know at the beginning of the semester so that I can accommodate your needs 7. The professor reserves the right to amend this syllabus as circumstances warrant. DETAILED DAILY TEACHING SCHEDULE: Area of lecture or tasks being Date Day completed in class. Jan 8 Monday Introduction Readings Jan 10 Wednesday Discussion Board #1 Legal and Regulatory Environment and Ethics Jan 12 Friday Review of week 1 s article Jan 15 Monday MLK Holiday No Class Jan 17 Wednesday Career paths within the field of Forensics Compare and Contrast Forensic Accounting and Internal Auditing Jan 19 Friday Discussion Board #2 The potential impact of COSO internal control integrated framework revision on internal audit structured SOX workprograms Jan 22 Monday Review of discussion Jan 24 Wednesday Fraud Triangle and SOX compliance The Evolution of Fraud Theory Jan 26 Friday Discussion Board 3 Enhancing Auditors Ability to Identify Opportunities to commit fraud: Jan 29 Monday Group Case presentations Jan 31 Wednesday Employee & Vendor Fraud Week 4 readings Feb 2 Friday Discussion Board 4 Feb 5 Monday Review of discussion Feb 7 Wednesday Financial Statement Fraud Week 5 readings Feb 9 Friday Discussion Board 5 Feb 12 Monday Review of discussion Feb 14 Wednesday Presentation of Research Paper Question Feb 16 Friday Exam 1 Feb 19 Monday Review exam Feb 21 Wednesday Fraud Prevention and Detection Week 6 readings Feb 23 Friday Discussion Board 6 Feb 26 Monday Review of discussion Page 7

8 Feb 28 Wednesday Fraud Investigation and Evidence collection process Mar 2 Friday Discussion Board 7 Mar 5 Monday Review of discussion Week 7 readings Mar 7 Wednesday Physical, Documentary, Observational and Week 8 readings Interview methods Mar 9 Friday Discussion Board 8 Mar 12 Monday Review of discussion Mar 14 Wednesday Forensic Science, Computer forensic, fraud Week 9 readings report and litigation Mar 16 Friday Exam 2 Mar 19 Monday No Class Spring Break Mar 21 Wednesday No Class Spring Break Mar 23 Friday No Class Spring Break Mar 26 Monday Review Exam Mar 28 Wednesday Divorce and Identity Theft Week 10 readings Mar 30 Friday Discussion Board 9 Apr 2 Monday Review of discussion Apr 4 Wednesday Organized Crime & Anti-money Week 11 readings Laundering Apr 6 Friday Discussion Board 10 Apr 9 Monday Review of discussion Apr 11 Wednesday Tax fraud Week 12 readings Research Paper Due Apr 13 Friday Discussion Board 11 Apr 16 Monday Review of discussion Apr 18 Wednesday Business Valuation Week 13 readings Apr 20 Friday Discussion Board 12 Bibliography Paper Due Apr 23 Monday Review of discussion Apr 24 Tuesday Reading Day May 3, Wednesday 12 pm 3 pm Section 01 Final Exam This syllabus is subject to change depending on the class progress and understanding of the class material. It is the responsibility of the student to update their syllabus and assignment schedules accordingly. ** *** Page 8

Accounting 543 Taxation of Corporations Fall 2014

Accounting 543 Taxation of Corporations Fall 2014 Classroom:, Tuesday and Thursday, 1:40-2:55 pm Instructor: G.P. Diminich Office: 25 Calhoun Street, Suite 250, Charleston, SC 29401 Email: gp.diminich@smithmoorelaw.com