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					Course Outline
Fraud Prevention and Investigation
Bachelor of Commerce or
Graduate Diploma in Business Administration
Fall 2009

General Information
Course Number: ACCO 470F/570, Section A
Time: Tuesday, from 14:45 to 17:15
Location:
Credits: 3
Prerequisite: COMM 217 or equivalent

Professor: Dominic Peltier-Rivest, Ph.D., M.Acc., CFE
Telephone: (514) 848-2424 Ext. 2778
Fax: (514) 848-4518
Email: Peltier-Rivest@jmsb.concordia.ca
Web: http://jmsb.concordia.ca/~Peltier-Rivest
Office: MB 14-215
Office Hours: Tuesdays from 11h00 to 12h00, and by appointment
Course Description
The problem of occupational fraud has grown in size and scope, thus threatening the
viability of every organization. Top company officials are responsible for proper
design, periodic assessment of the effectiveness, and disclosure of material
deficiencies in internal controls to external auditors and the audit committee. Top
officials are also required to disclose to auditors and the audit committee any fraud,
whether material or not, that involves management or other employees who have a
significant role in the company’s internal controls.


This course examines the principles and methodology of fraud detection and
deterrence. Class sessions consist of lectures, real-life fraud case discussions and the
presentation of DVDs from the Association of Certified Fraud Examiners. Topics
covered include skimming, cash larceny, check tampering, billing, payroll and expense
reimbursement schemes, non-cash misappropriations, corruption, fraudulent financial
statements, conducting investigations and interviewing witnesses. This course also
examines auditors’ legal responsibilities towards fraud, the evaluation of internal
controls and important pieces of legislation such as the Sarbanes-Oxley Act and the
Criminal Code. Finally, the ethical aspects associated with fraud are discussed.


This course is useful to Business students because it focuses on the role of
management in the prevention and detection of occupational fraud. In addition, this
course specifically helps Accounting students to recognize and analyze the red flags
of fraud during regular audit missions, and to explain how allegations of fraud should
be investigated and resolved.




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Fraud Prevention and Investigation – Dr. D. Peltier-Rivest – Fall 2009
Learning Outcomes
ACCO 470F/570 is designed to provide students with an understanding of the basic
concepts of occupational fraud (including fraudulent reporting).


At the end of the course, students should be able to:
    •   Explain how and why occupational fraud is committed.
    •   Recommend how fraudulent conduct may be detected and deterred.
    •   Appraise and recommend proper internal controls.
    •   Explain how allegations of fraud should be investigated and resolved.
    •   Explain current fraud-related legislation (e.g., the Sarbanes-Oxley Act,
        Auditors’ legal responsibilities towards fraud, the Criminal Code).
    •   Demonstrate and understanding of the ethical aspects associated with fraud.
    •   Review, synthesize and analyze complex fraud cases, and recommend
        appropriate solutions (for graduate students only).



Teaching Methods
Class sessions will consist of lectures, real-life fraud case discussions, and the
presentation of DVDs from the Association of Certified Fraud Examiners. Students will
have to prepare for each class by doing the necessary readings prior to each session.
The instructor will not cover in class all the material that students are expected to
learn.


Course Evaluation
The final grade for the course will be based on the following components:


Evaluation                        Due Date                   Weight
Case Discussions (team work)      Starting Sept. 29          10%
DVD Ethics Assignments            Oct. 13 & Nov. 24          25% (10% for graduate
                                                                   students)
Term Paper                        Dec. 1                     ----   (15% for grads)
(graduate students only)
Mid-term Examination              Oct. 27                    25%
Final Examination (cumulative)    TBA by Exams Office        40%


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Fraud Prevention and Investigation – Dr. D. Peltier-Rivest – Fall 2009
Details of Assignments

Fraud Case Discussions (team work)
Starting in week 4, investigation teams of 4 students will be responsible for analyzing
real-life fraud cases. Each investigation team will be expected to describe the victim
organizations, the perpetrators, the fraud schemes, the legal outcomes, and to
recommend relevant detection and prevention measures. Some team members may
receive individual marks if their performances vary greatly from that of the overall
team.


DVD Ethics Assignments
Each student must turn in two assignments related to the content of specific DVDs
shown in class. Detailed instructions will be announced in class at the end of the DVD
presentation in week 5 and 11. Each assignment must be turned in at the beginning of
the following class (i.e., in week 6 and 12). Each assignment must be typed with a
word processor, printed (i.e., no electronic submissions will be accepted), and contain
4 to 5 pages in total (double inter-space). No make-up DVD presentation will be
allowed for students who were absent from class.



Academic Integrity
The Code of Conduct (Academic) at Concordia University states that “the integrity of
University academic life and of the degrees, diplomas and certificates the University
confers is dependent upon the honesty and soundness of the instructor-student
learning relationship and, in particular, that of the evaluation process. As such, all
students are expected to be honest in all of their academic endeavours and
relationships with the University." (Undergraduate Calendar, section 17.10 or
Graduate Calendar 2008-2009, pages 834-851)


All students enrolled at Concordia are expected to familiarize themselves with the
contents of this Code. You are strongly encouraged to visit the following web address:
http://www.concordia.ca/academicintegrity , which provides useful information about
proper academic conduct.




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Fraud Prevention and Investigation – Dr. D. Peltier-Rivest – Fall 2009
Required Course Materials

Textbook
Wells, Joseph T. 2008. Principles of Fraud Examination. 2nd Edition. Wiley & Sons Inc.
444 pages.


English Research Report
ACFE and D. Peltier-Rivest, 2007, “Detecting Occupational Fraud in Canada: A Study
of its Victims and Perpetrators,” A supplement to Fraud Magazine 21(2), 39 pages.
http://www.acfe.com/documents/rttn-canadian.pdf


French Research Report
ACFE and D. Peltier-Rivest, 2007, “La détection des fraudes commises en entreprise
au Canada: une étude de ses victimes et de ses malfaiteurs,” ACFE Web:
http://www.acfe.com/documents/rttn-french-canadian.pdf , 39 pages.




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Fraud Prevention and Investigation – Dr. D. Peltier-Rivest – Fall 2009
Assessment of Learning Outcomes

The following learning objectives are assessed by the following course assignments:

    •   Explain how and why occupational fraud is committed:

        Case Discussions, DVD Ethics Assignments & Term paper, Mid-term Exam,
        Final Exam


    •   Recommend how fraudulent conduct may be detected and deterred:

        Case Discussions, DVD Ethics Assignments & Term paper, Mid-term Exam,
        Final Exam


    •   Appraise and recommend proper internal controls:

        Case Discussions, DVD Ethics Assignments & Term paper, Mid-term Exam,
        Final Exam


    •   Explain how allegations of fraud should be investigated and resolved:

        Case Discussions, Final Exam


    •   Explain current fraud-related legislation:

        Case Discussions, DVD Ethics Assignments, Mid-term Exam, Final Exam


    •   Demonstrate an understanding of the ethical aspects associated with fraud:

        Case Discussions, DVD Ethics Assignments, Mid-term Exam, Final Exam


    •   Review, synthesize and analyze complex fraud cases, and recommend
        appropriate solutions (for graduate students only):

        Term Paper




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Fraud Prevention and Investigation – Dr. D. Peltier-Rivest – Fall 2009
Feedback and Grading
The objective of this course is to broaden your knowledge and skills in the area of
Fraud Investigations. Working through the assignments will enable you to develop a
better understanding of this field. Feedback will be provided to you throughout the
course. At the end of each course, the instructor will submit a letter grade for every
student registered. The following list provides the equivalent letter and number grades
to evaluate each student’s overall performance at the end of the course:
Undergraduate Students:
Letter                                         Number
A+                                       90%    -     100%
A                                        85% -        89%
A-                                       80%    -     84%
B+                                       77%    -     79%
B                                        73% -        76%
B-                                       70%    -     72%
C+                                       67%    -     69%
C                                        63% -        66%
C-                                       60%    -     62%
D+                                       57%    -     59%
D                                        53% -        56%
D-                                       50%    -     52%
F                                        0      -     49%
Graduate Students:
Letter                                         Number
A+                                       90%    -     100%
A                                        85% -        89%
A-                                       80%    -     84%
B+                                       77%    -     79%
B                                        73% -        76%
B-                                       70%    -     72%
C                                        65% -        69%
F                                        0      -     64%



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Fraud Prevention and Investigation – Dr. D. Peltier-Rivest – Fall 2009
Fraud Prevention and Investigation At-a-glance
   Session                    Activity                  Required Readings from      Date       Evaluation
                                                       Textbook (T) and Cases on
                                                             First Class (C)

       1           Introduction to Fraud Examination              T-1              Sept. 8



       2                      Skimming                            T-2              Sept. 15
                                                                C – Ch. 2

       3                    Cash Larceny                          T-3              Sept. 22
                                                                C – Ch. 3

       4                   Billing Schemes                        T-4              Sept. 29   Case Discussion
                                                                C - Ch. 4

       5                  Check Tampering                         T-5               Oct. 6    Case Discussion
                                                                C - Ch. 5

       6                   Payroll Schemes                        T-6              Oct. 13      DVD Ethics
                                                                                                Assignment
                                                                C - Ch. 6
                                                                                              Case Discussion

       7          Expense Reimbursement Schemes                   T-7              Oct. 20    Case Discussion
                                                                C - Ch. 7
                                  &
                   Register Disbursement Schemes                  T-8

       8                   Mid-term Exam                                           Oct. 27    Mid-term Exam




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Fraud Prevention and Investigation – Dr. D. Peltier-Rivest – Fall 2009
       9             Non-Cash Misappropriations                 T-9       Nov. 3    Case Discussion
                                                              C - Ch. 9

      10                     Corruption                         T-10      Nov. 10   Case Discussion
                                                             C - Ch. 10

      11           Accounting Principles and Fraud              T-11      Nov. 17


                                 &
                   Fraudulent Financial Statements              T-12

      12           Accounting Principles and Fraud              T-11      Nov. 24      DVD Ethics
                                                                                       Assignment

                                 &                              T-12
                                                                                    Case Discussion
                   Fraudulent Financial Statements           C - Ch. 12

      13               Interviewing Witnesses                   T-13      Dec. 1        Term Paper
                                                                                    (graduate students
                                 &
                                                                                           only)
                    Conducting Investigations and               T-14
                         Writing Reports
                                 &
                   Occupational Fraud and Abuse:
                                                                T-15
                          The Big Picture




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Fraud Prevention and Investigation – Dr. D. Peltier-Rivest – Fall 2009

				
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