Spring 2015

Update 4/23/15:
New notes

Reminder:
NO CLASS ON TUESDAY 5/12
                TTR 3:00 - 4:15pm; BC 220                   

COURSE DESCRIPTION:
Fraud is a significant drain on the U.S. economy. A recent study by the Association of Certified Fraud Examiners estimated that fraud costs the economy over $1 trillion per year. Moreover, this same study estimated that only about 11 percent of frauds are discovered through the course of normal audits (as opposed to approximately 19% discovered by accident)--and even more by tips. This course will examine the various frauds that are perpetrated on companies and discuss ways the accountant can uncover these frauds. In addition, the criminal justice system will be reviewed (with an eye to the role of the forensic accountant as an expert witness) and the various litigation-support functions provided to attorneys by accountants will be discussed.

The ethical aspects of these issues will also be discussed during the course of the semester.

COURSE MATERIAL:
Required:    

• (WSA): Fraud Examination, Albrecht, 4th Edition (ISBN-13: 978-0-538-47084-1)
• (S): Financial Shenanigans, Schilit. 3rd Edition (ISBN 978-0-07-170307-9)
• (A): O'Brien 124 Course Reader--available at: Copy Craft, 341 Lafayette Street, Santa Clara; Tel: 247-4692. Please call first. Please note that the reader will not be available until after the first class session

HOMEWORK ASSIGNMENT:
Before you come to each class, read the material as outlined in the syllabus. Homework problems are to be completed before each class. Students will be expected to present solutions to selected homework assignments in class. While homework will not be routinely collected, it is absolutely necessary that you do your homework. Each chapter uses concepts and techniques learned in previous chapters. If you wish to understand the material better, you cannot afford to ignore the homework.

EXAMINATIONS:
There will be four or five (4-5) examinations, two or three mid-terms, a take-home FSA exam and  a comprehensive take-home final examination. The group project and the related presentation will also serve as a comprehensive measure of your overall course competency.   Generally speaking, there will be NO make-up examinations. In the event of a rare emergency on the day of the examination, you should notify me as soon as possible. Use all available methods of communication. The final examination and presentation must be completed as scheduled.  On each examination, an adjustment to each student’s raw score will be given based upon the average score of the top 10% of the class.

CLASS SESSION:
In class, we stress analysis and application of the concepts that you are expected to learn on your own. While we follow the general flow of the textbooks, we do not simply repeat the text. We emphasize important points, add new information, review homework problems and apply the concepts to real-world situations. Ample opportunities will be given to you in class for asking questions and answering questions raised by others. I expect each of you to be prepared for class.

GRADING AND GRADE CATEGORIES:

Grading will be based on the following scores:		The following grading distribution will be approximated:
Exams (4-5), 100 points each	400-500	A range 40%	90%-100%
Individual Project	50	B range 40%	80%-89%
Group Project	100	C range 15%	70%-79%
Group Presentation	50	D range 5%	60%-69%
Total Points	600-700	F	Below 60%

 

PROJECTS:
Individual
Each student will select a type of fraud or defrauded company and prepare an analysis of the situation in a paper not to exceed 5 pages. Use the following tools to meet the minimum requirements of this project: fraud triangle, elements of fraud, symptoms of fraud and the vulnerability chart.  Add any other tools of your choice to enrich the analysis of your selected situation.  Complete the paper with a personal assessment of the fraudulent behavior.  Personal experiences really enhance the value of this project.  The individual project is due on March 17th.

Group
Each team of 5-6 students will select a company of their choice and conduct a risk assessment/fraud investigation of that firm. The results of this analysis will be presented to the class.  This grade will be weighted based upon participation and the evaluation of your teammates.

The accompanying written report should be presented in the form of a formal fraud analysis, and include:

1. a discussion of how the elements of the fraud triangle indicated a potential high risk situation,
2. a summary of your investigation including any interviews conducted and/or evidence collected, and
3. conclusions drawn from your investigation.

More specific information on the reporting requirements of this assignment will be distributed later in the course.

The project will conclude with classroom presentations conducted in the form of an expert witness testimony on May5th and 7th. Your non-team members will serve as opposing counsel and will cross-examine your testimony. Preliminary reports must be available for the opposing counsel on Apr. 9th.

Any violation of academic integrity in any of the exams or assignments (including unauthorized use of internet resources or illegal copying of reading materials) will lead to a course grade of "F".

 

COURSE OUTLINE AND ASSIGNMENTS (H/W and article assignment dates may be changed as we progress):

 

COURSE NOTES: (Initial notes are available for your review. More notes will be added as the semester progresses.)

 

IMPORTANT MESSAGES:

• Welcome back!  Please note that our first class starts at 3:00pm on 1/22. We will discuss the material in WSA 1.
• DOWN LOAD THE NOTES FOR OUR FIRST CLASS!!!!!!!