FRAUD EXAMINATION ACCT. 3380-001 Spring 2012 I. Instructor: Name: Dr. Robert E. Guinn Office: 268A Friday Ph. #: 704-687-7671: E-mail: reguinn@uncc.edu; Fax Number: 704-687-6938 Website: http://www.belkcollegeofbusiness.uncc.edu/reguinn Classes Room Office Hours 3:30-4:45 p.m. TR. Friday 132 2:00-3:30 p.m., 4:45-6:30 p.m. T 6:30 9:15p.m T Friday 132 2:00-3:30 p.m., R or by appointment II. Catalog Description : ACCT 3380. Fraud Examination (3) Prerequisite: ACCT 3311 (with a grade of C or above) or with special permission.this course examines the fraud problem faced by businesses and focuses on fraud prevention and detection. The course involves the study of the different types of fraud as well as an examination of the various elements of fraud investigation. Three lecture hours. (Day and Evenings-Spring) III. Course objectives and format: The objectives of the course are to develop an understanding of the different types of frauds and how these frauds may be prevented or detected. Special emphasis will be given to financial statement fraud and suggestions for detecting fraud in financial statements. The various elements of a fraud investigation will be examined. Finally, the course examines the options that victims have when they experience fraud and the civil and criminal statutes that govern fraud legal proceedings. The format of the course will be lecture and discussion. Upon the successful completion of this course, students should 1. Have a good understanding of the different types of fraud and the seriousness of the fraud problem. 2. Have knowledge of the traditional fraud detection methods and of technology that may be used to proactively detect fraud. 3. Have an understanding of the types of investigative procedures used by fraud examiners. 4. Have an understanding of the interviewing process and how to plan and conduct an interview. 5. Be aware of how financial statement frauds occur and are concealed. 6. Understand the framework for detecting financial statement fraud. 7. Recognize the various ways in which employees, vendors and customers can steal assets. 8. Understand the nature of tax fraud and common tax fraud schemes.
IV. Course materials: The required resource text is: Albrecht, W. Steve; Albrecht, Conan C.; Albrecht, Chad O.; Zimbelman, M. Fraud Examination, Fourth Edition. Mason, OH.: South-Western Cengage Learning, 2012. ISBN-13: 978-0-538-47084-1. PowerPoint slides for each chapter and solutions to homework assignments are on electronic reserve at the library. V. Determination of Grade: Course activities will carry the following weights: Points Dates Examination #1 100 Jan 31 Examination #2 100 Feb. 28 Examination #3 100 Mar. 27 Final 150 May 10 Special Projects, etc. 150 TBA Total Points 600 The following grading scale will be used. Grading Scale (%) A 90-100 D 60-69 B 80-89 F 0-59 C 70-79 VI. Class Policies, Homework, etc. 1. Homework problems are multiple choice, true/false, discussion, and case types of questions. You are to prepare answers to assigned questions before class for the date they are assigned in order that you may participate in the class discussion of these questions. I do not collect homework problems. Solutions to homework assignments are on electronic reserve at the library. 2. No make-up tests. If a student misses a test without a satisfactory excuse, the grade will be recorded as a zero. If you provide a satisfactory written excuse within 7 days of the test, your percentage grade on the final examination will be substituted for the missed test. 3. Special Projects, etc. Special projects will consist generally of written assignments involving individuals and groups of two or three individuals. This permits a review of member s work by other members of the group and a cooperative effort of all members to complete the assignments on time. Detailed descriptions of the assignments and due dates will be provided in class. Points available under this section also include class attendance and participation. 4. Misconduct in class. Students are expected to be attentive in class. This means that talking among students is prohibited while the instructor, guest speakers, and colleagues are presenting materials in class. Misconduct of a student in class is considered discourteous and disruptive to the class and thus may cause the student's grade to be reduced by at least a letter grade.
5. Conduct during examinations. All books, notes, scratch paper, etc. must be left outside the classroom or placed in the front of the room before the test. Eyes should not wander to other test papers. Action will be taken against a student suspected of academic dishonesty which may cause an F to be received in the course. Also see "Academic Integrity" below. 6. Class attendance. Students are expected to attend punctually all scheduled sessions and to complete the work assigned. Arriving to class late or leaving early counts as an absence. Students must attend class meetings in order to receive a passing grade in the course. 7. Diversity: The Belk College of Business strives to create an inclusive academic climate in which the dignity of all individuals is respected and maintained. Therefore, we celebrate diversity that includes, but is not limited to ability/disability, age, culture, ethnicity, gender, language, race, religion, sexual orientation, and socio-economic status. Academic Integrity: Students have the responsibility to know and observe the requirements of the UNCC Code of Student Academic Integrity. This code forbids cheating, fabrication or falsification of information, multiple submission of academic work, plagiarism, abuse of academic materials, and complicity in academic dishonesty. Any special requirements or permission regarding academic integrity in this course will be stated by the instructor, and are binding on the students. Academic evaluations in this course include a judgment that the student's work is free from academic dishonesty of any type; and grades in this course therefore should be and will be adversely affected by academic dishonesty. Students who violate the code can be expelled from UNCC. The normal penalty for a first offense is zero credit on the work involving dishonesty and further substantial reduction of the course grade. In almost all cases the course grade is reduced to F. Copies of the code can be obtained from the Dean of Students Office. Standards of academic integrity will be enforced in this course. Students are expected to report cases of academic dishonesty to the course instructor.
Page 4 Accounting 3380 Schedule-Section 001 Spring 2012 TR Date Topic Reading Assignment Problem Assignment Jan. 10 T Orientation Video:Intro. To Fraud Examination, Vol 1, Segment 1 & 2 12 R The Nature of Fraud Albrecht, Chapter 1 Q-1, 2, 3, 4, 5, 6, T/F, MChoice Cases 1, 3, 6, 13, 15 Why People Commit Fraud Albrecht, Chapter 2 Q- 3, 4, 5, 6, 8, 9, 12 Case 4, 10 Fraud Articles JOA :Mar. 2004; Oct. 2004 Aug 2003 17 T Fighting Fraud: An Overview Albrecht, Chapter 3 Q-1,2, 6, 8, 9, 11, Cases 1,4, 8 Preventing Fraud Albrecht, Chapter 4 Q-2, 5, 6, 8, 9, Cases 1, 4 Fraud Articles JOA: Feb. 2004; Dec. 2004 June 2010 19 R Recognizing the Symptoms of Fraud Albrecht, Chapter 5 Q-1,2,3,4,6,7, 11, T/F. MChoice, Cases 1, 7, 8, 9 Fraud Articles JOA: Sept. 2002 24 T Data-Driven Fraud Detection Albrecht, Chapter 6 & Q-2, 4, 5, 6, 8, 9 Appendix A Cases 1, 2, 4, 7 Fraud Articles JOA: June 2007 26 R Investigating Theft Acts Albrecht, Chapter 7 Q-1, 2, 3, 5, 10, 11, Cases 1, 2, 7, 10 Fraud Articles JOA: Apr. 2002; Dec. 2009 31 T Examination # 1 (Chapters 1-6)
Feb. 2 R Investigating Concealment Albrecht, Chapter 8 Q-1, 2, 3, 5, 6, 8 Cases 2, 3 Feb. 7 T Speaker: 9 R Conversion Investigation Methods Albrecht, Chapter 9 Q1,2,3,7,11, Cases 1, 2, 6, 8 14 T Inquiry Methods and Fraud Reports Albrecht, Chapter 10 Q-1,2,3,7,8,11,12, Cases 2, 3, 5, 10 Fraud Articles JOA: Sept. 2003; Dec. 2003 Nov. 2001 16 R Video: Finding the Truth: Effective Techniques for Interview and Communication 21 R Financial Statement Fraud Albrecht, Chapter 11 and Q-4,7,8,9,10,14 T/F Appendix to text MChoice (near end of book) Cases 3,4,5 SAS # 99 (Au Sec 316) 23 T Revenue- and Inventory-Related Appendix to Chapter 11 Financial Statement Frauds Albrecht, Chapter 12 Q-1,4,6,7,8,9 Cases 2,4,5,6 Fraud Articles JOA: Mar. 2001: Oct 2000 28 T Examination # 2 (Materials covered since Exam. 1, Chapters 7-10, and video Feb 16) Mar. 1 T Liability, Asset, and Inadequate Disclosure Frauds Albrecht, Chapter 13 Q-1,2,3,6,7,12 Cases 2,6,8,11 Mar. 6 & 8 No class-spring Break 13 T Consumer Fraud Albrecht, Chapter 15 Q-1,3,4,5,9,10 Cases 4, 5 Fraud Articles JOA: May 2004; Jan 2002 April 2003 15 R Video: 20 R Fraud Against Organizations Albrecht, Chapter 14 Q-1,2,3,4,5,7,10 Cases 2,6,11 Fraud Articles JOA: May 2004; Jan 2002 April 2003, July 2002
Mar. 22 T Bankruptcy, Divorce and Tax Fraud Albrecht, Chapter 16 Q-1,2,4,6,7,8,16 Cases 3, 8, 15 Fraud Articles JOA: June 2003 Mar. 27 T Examination # 3 (Materials covered since last exam through Mar. 13, Chapters 11, 12, 13, 15) 29 R Fraud in E-Commerce Albrecht, Chapter 17 Q-1,2,7,8, T/F, MChoice, Case 1,3 Apr. 3 T Legal Follow-up Albrecht, Chapter 18 Q- 1,2,3,4,8,9,11,13 Cases 1, 5, 14 Fraud Articles JOA: June 2005 5 R Video: Fundamentals of Computer Fraud 10 T Speaker : 12 R Class Presentations- Project 1 17 T Class Presentations- Project 1 19 R Class Presentations-Project 1 24 T Class Presentations-Project 1 26 R Class Presentations-Project 1 May 1 T Review of current developments 10 R Final Examination, 2-4:30 pm JOA Journal of Accountancy. Fraud Articles may be found in the Journal of Accountancy by going to the AICPA website: www.aicpa.org. Locate Publications at the top of the website and scroll down to Journal of Accountancy. Under Issue Archive, click on Select from Menu and enter year and month of assigned article. See Fraud Articles on my website for list of articles by year and month. The title of the article and name(s) of the authors are given for each article. AICPA Auditing Standards Au Sec 316 (SAS 99) may be found on the AICPA website : www.aicpa.org/research/standards/auditattest. Click on Statements on Auditing Standards and find SAS No. 99. The link to SAS No. 99 is AU Sec 316.