Description:

This course teaches the principles involved in the detection and prevention of fraud as it pertains to financial matters. The course will explore the vast body of knowledge gained by accounting practitioners and will utilize critical thinking to apply these factors to the prevention of financial statement and employee fraud. Upon completion of this course, the student should be able to describe how and why fraud is committed, to use creative ways to detect and prevent fraudulent conduct, and to understand how allegations of fraud should be investigated and resolved. 3 hrs. lecture/wk.

Supplies: Refer to the instructor's course syllabus for details about any supplies that may be required.

Textbook(s): For information see - http://bookstore.jccc.net

Course Fees: NONE

Course Objectives:

Upon successful completion of this course the student should be able to:

1. Define fraud examination and explain how and why fraud is committed.
2. Describe examples of cash fraud and explain how they are committed, detected, and deterred.
3. Illustrate examples of non-cash asset fraud and demonstrate an understanding of how they are discovered and prevented.
4. Describe corruption schemes and explain how the schemes are committed, detected, and deterred.
5. Demonstrate an understanding of frauds involving accounting principles and financial statements and identify how they are detected and prevented.
6. Illustrate the process of interviewing witnesses, investigating fraud, and resolution of fraud cases.

Content Outline & Competencies:

I. Fraud Examination
   A. Define fraud examination and differentiate it from auditing.
   B. Demonstrate an understanding of how perceived opportunity and
rationalization contribute to fraud.
   C. Explain tools used in fraud examination.

II. Cash Fraud Schemes
   A. Illustrate skimming schemes, and identify how sales and receivables
skimming schemes are discovered and prevented.
   B. Describe cash larceny schemes, and depict how larceny schemes at
point of sale and larceny schemes of receivables are committed, detected,
and deterred.
   C. Explain billing schemes, and illustrate how shell company schemes,
non-accomplice vendor schemes, and personal purchases schemes are
discovered and prevented.
   D. Illustrate check tampering, and outline how forged maker schemes,
forged endorsement schemes, and altered payee schemes are committed,
detected, and deterred.
   E. Explain payroll schemes, and illustrate how ghost employee schemes,
falsified hours and salary schemes, and commission schemes are discovered
and prevented.
   F. Describe expense reimbursement schemes, and identify how
mischaracterized expense reimbursement schemes, overstated expense
reimbursement schemes, and fictitious expense reimbursement schemes are
committed, detected, and deterred.
   G. Illustrate register disbursement schemes, and outline how false
refund schemes and false void schemes are detected and prevented.

III. Non-Cash Asset Fraud Schemes
   A. Identify misuse of non-cash asset schemes, unconcealed larceny
schemes, asset requisition and transfer schemes, purchasing and receiving
schemes, and fraudulent shipment schemes, and illustrate how they are
discovered and prevented.
   B. Illustrate inventory shrinkage schemes, and describe how stolen
inventory is concealed and detected.

IV. Corruption Schemes
   A. Explain bribery schemes, including kickback schemes and bid-rigging
schemes, and identify how they are detected and prevented.
   B. Illustrate illegal gratuity schemes, economic extortion schemes, and
conflict of interest schemes, and outline how they are discovered and
prevented.

V. Frauds Involving Accounting Principles and Financial Statements
   A. Illustrate the reasons that people commit financial statement fraud
and the methods that they use to commit the fraud.
   B. Outline and describe the conceptual framework for financial
reporting.
   C. Explain the components of the Sarbanes-Oxley Act of 2002 and outline
its primary purpose and provisions.
   D. Describe fictitious revenue schemes, timing difference schemes,
concealed liability and expense schemes, improper disclosure schemes, and
improper asset valuation schemes, and explain how they are detected and
prevented.

VI. The Process of Investigating and Resolution of Fraud Cases
   A. Compare and contrast the types and uses of interview questions, and
identify how to open and close an interview.
   B. List some of the verbal and nonverbal clues to deception.
   C. Outline the elements of a signed statement.
   D. Compare and contrast fraud prevention and fraud deterrence.

Methods of Evaluation of Competencies:

Evaluation of student mastery of course competencies will be accomplished using the following methods:

Minimum of four examinations
Evaluation of homework assignments
Evaluation of participation in classroom discussions
Optional projects



Grade Criteria:

A = 90 – 100%
B = 80 – 89%
C = 70 – 79%
D = 60 – 69%
F = below 60%

Caveats:

1. None

Disabilities:

If you are a student with a disability, and if you will be requesting accommodations, it is your responsibility to contact Access Services. Access Services will recommend any appropriate accommodations to your professor and his/her director. The professor and director will identify for you which accommodations will be arranged.

JCCC provides a range of services to allow persons with disabilities to participate in educational programs and activities. If you desire support services, contact the office of Access Services for Students With Disabilities (913) 469-8500, ext. 3521 or TDD (913) 469-3885. The Access Services office is located in the Success Center on the second floor of the Student Center.