Print Version

Effective: Fall 2012

Prerequisites: Prerequisite: ACTG 51A.
Advisory: Advisory: Eligibility for MATH 220 and ESLL 26.
Grade Type: Letter Grade, the student may select Pass/No Pass
Not Repeatable.
FHGE: Non-GE Transferable: CSU
5 hours lecture. (60 hours total per quarter)

Student Learning Outcomes -
  • A successful student will be able to perform related calculations and demonstrate the ability to use methods and /or procedures to detect financial fraud.
  • A successful student will be able to explain fraud examination terminology, principles, and concepts.
Description -
This course covers important topics associated with modern forensic accounting and fraud examination. Topics include an examination of the various types of occupational fraud, as well as the techniques to prevent and detect fraud in organizations. In addition, students will learn principals of fraud examination including who and why individuals commit fraud.

Course Objectives -
The student will be able to:
  1. Identify the fraud triangle and explain why people and organizations commit fraud.
  2. Discuss a variety of fraud schemes.
  3. Identify internal controls that help detect and prevent fraud.
  4. Explain how allegations should be investigated and resolved.
  5. Explain the types of fraud fighting careers available today.
Special Facilities and/or Equipment -
Access to a computer lab and Excel software. When taught as an online distance learning section, students and faculty need ongoing and continuous Internet and email access.

Course Content (Body of knowledge) -
  1. Explain fraud
    1. Define Fraud
    2. Define Abuse
    3. Distinction between auditing, fraud examination, and forensic accounting
    4. Explain the theory of the Fraud Triangle
  2. Cash receipt schemes and other Asset misappropriations
    1. Skimming Schemes
    2. Cash larceny schemes
    3. Noncash misappropriation schemes
  3. Cash Disbursement Schemes
    1. Billing Schemes
    2. Check tampering schemes
    3. Payroll schemes
    4. Expense reimbursement schemes
    5. Register Disbursement Schemes
  4. Corruption
    1. Define Corruption and bribery
    2. Understand kickback and bid-rigging schemes
    3. Understand Conflict of Interests
  5. Financial Statement Fraud
    1. Identify reasons why management might overstate/understate performance.
    2. Describe the ways in which financial statement fraud is committed.
    3. Understand financial statement analysis for detecting fraud
    4. Understand the importance of SAS No. 99
  6. Fraud Investigations
    1. What circumstances would necessitate an investigation.
    2. The definition of evidence.
    3. Understand the importance of documentary evidence
    4. Interviewing
    5. Report Writing
Methods of Evaluation -
Examinations, quizzes, computerized assignments, written reports, and group activities.
Representative Text(s) -
Wells,Joseph T. Principals of Fraud Examination, 3rd edition, Wiley, 2011.

Disciplines -
Method of Instruction -
Lecture, electronic discussions, group work, case studies.
Lab Content -
Not applicable.
Types and/or Examples of Required Reading, Writing and Outside of Class Assignments -
  1. Reading of corporate annual reports
  3. Journal of Accountancy
  4. AICPA Auditing Standards ƒ Au Sec 316 (SAS 99) may be found on the AICPA website : Go to Standards and click on Research.