BUS 479 – FRAUD EXAMINATION
COURSE SYLLABUS
SPRING, 2004
INSTRUCTOR: Carl W. Coolbaugh
OFFICE: B&E 234
OFFICE PHONE: 587-7172
OFFICE HOURS: 2-4pm MWF; 9:30-11:30am TTH;
Or by appointment
Text: Occupational Fraud and Abuse, Wells, Joseph T. (Obsidian Publishing Company, Inc. 1997). Students may purchase the text from the Association of Certified Fraud Examiners web site at www.cfenet.com for a special education price of $25. A copy of SAS #99 should be purchased from the AICPA. You can use their website www.cpa2biz.com to order your copy.
Students will learn how and why occupational fraud is committed, how fraudulent conduct can be deterred, and how allegations of fraud should be investigated and resolved.
Substantial participation from each student in the conduct of the course will optimize the learning experience. In addition to covering material in the text, students will be asked to present and analyze one actual fraud case. Each presentation will apply concepts and techniques learned during the semester.
This course has several objectives. The first, and perhaps foremost, is to provide fraud education to managers, independent auditors, future fraud examiners, and others interested in controlling occupational fraud and abuse. Managers/owners will want to control fraud to reduce operating costs. Those of us who will or do presently conduct audits need to effectively understand fraud in order to comply with our responsibilities as an auditor. Finally, fraud examination can be an intriguing and rewarding career.
Fraud is not just a current event topic. It has been with us for centuries. Clearly, recent developments have heightened our awareness. Yet, despite the importance of fraud education, only 13 of 215 universities surveyed in 1999 offered a specific course on fraud. “As fraud become the crime of the 21st century, its more important than ever that we protect our accounting graduates with the armor of fraud examination education, “ said Joseph T. Wells, the author of our text and founder of the Association of CFEs.
There are over 26,000 CFEs and their numbers are growing. We will address what it takes to become a CFE and the difference between what a CFE is engaged to do and what CPAs typically do. Although this course is comprehensive, it is not exhaustive. Studying for the CFE Exam will naturally require additional study and preparation from the student. We hope to provide a significant foundation for your future studies.
Finally, this course is part of Adams State College’s participation in the Association of Certified Fraud Examiners Higher Education Program. ASC is one of only four Colorado schools listed as participants on the Association’s website (as of 11/19/03). As a participating school, we receive support and materials from the Association. In exchange, we agree to provide a 3-credit hour course entitled “Fraud Examination”. Copies of course evaluations are provided to the Association upon completion of the course.
GRADING
Grades are based on a course project (worth 100 points) and a final exam (worth 100 points.) Students are expected to attend regularly. Mandatory attendance is common in courses that qualify for continuing profession education credit (CPE) for CPAs and CFEs.
All students must complete a course project. The project is described in detail below and involves applying material learned during the course to an actual fraud case.
This course is designed to provide students with an applied experience. It is important for students to be able to take concepts and principles and apply them to unstructured, real-life situations. Applied education is strongly encouraged by the Accounting Education Change Commission – a commission established by the AICPA.
The course project will involve applying fraud examination theory and concepts learned in class (and from assigned readings) to an actual fraud case. The project will be summarized in writing and presented to the rest of the class so all can benefit from your research.
Your analysis should include:
1) A description of the facts of the case;
2) Analysis using the fraud triangle;
3) Identification of risk factors or “red flags” you found;
4) Description of the type of fraud committed; and,
5) Your recommendations for improvement.
TENTATIVE CHRONOLOGICAL SCHEDULE:
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DATES |
CHAPTER IN O.F.A. TEXT
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POTENTIAL TOPICS: |
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Jan. 12, 14 |
Chapter 1: Introduction |
2002 Report to the Nation |
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Jan. 16, 19, 21 |
Chapter 2 |
SAS #99 & Case Study |
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Jan. 23, 26, 28 |
Chapter 3: Skimming |
Red Flags Video |
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Jan. 30, Feb. 2, 4 |
Chapter 4: Cash Larceny |
Fraud Trial Video
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Feb. 6, 9, 11
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Chapter 5: Check Tampering
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Crazy Eddie Video
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Feb. 13, 16, 18 |
Chapter 6: Register Disb. |
Guest Speaker |
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Feb. 20
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No Class |
Snow Days
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Feb. 23, 25, 27 |
Chapter 7: Billing Schemes |
Beyond the Numbers Video |
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Mar. 1, 3, 5 |
Chapter 8: Payroll Schemes |
JofA Article
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Mar. 8, 10, 12 |
Review & Catch up |
Other Peoples Money Video |
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Mar. 15 – 19
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No Class
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Spring Break
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Mar. 22, 24, 26 |
Chapters 9, 10: Corruption |
Corporate Con Video |
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Mar. 29, 31 Apr 2 |
Chapters 11, 12 |
Excursion Airlines |
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Apr. 5, 7, 9 |
Chapters 13,
14, 15
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B. Minkow/
Cooking the Books
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Apr. 12, 14, 16 |
Chapter 16: Big Picture |
Case Presentations |
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Apr. 19, 21, 23 |
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Case Presentations
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Apr. 26, 28, 30 |
Review |
Case Presentations
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May 4
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Final Exam
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8:00am to 9:50am
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