Forensic Accounting and Fraud Investigation

10

Learning Objective :

The objective of this course is to gain a basic understanding of forensic accounting and fraud investigation.

Prerequisite: None

Course level: Basic

Advanced preparation: None

Teaching method: Text and Online study

Recommended hours: 10

Summary of Contents:

• Forensic Accounting and Fraud Investigation Lesson and Objectives	Reading Assignment
  1. Fraud in Society	Chapter 1
  The learning objectives for this lesson are to gain an understanding of: What is fraud Types of fraud What the numbers tell us about fraud The social consequences of economic crime
  2. Understanding the Basics of Financial Accounting	Chapter 2
  The learning objectives for this lesson are to gain an understanding of: The five accounting cycles Journals Tying the thread
  3. The Entities	Chapter 3
  The learning objectives for this lesson are to gain an understanding of: Proprietorships Partnerships Corporations Business enterprises in the global environment
  4. Fundamental Principles of Analysis	Chapter 4
  The learning objectives for this lesson are to gain an understanding of: Good analysis = due diligence Why do it Other factors to consider Analysis for the non-expert
  5.The Role of the Accounting Professional	Chapter 5
  The learning objectives for this lesson are to gain an understanding of: The importance of accounting professionals in the investigation The audit process Internal controls
  6. Business as a Victim	Chapter 6
  The learning objectives for this lesson are to gain an understanding of: Employee thefts Payroll fraud Fraudulent billing schemes Fraud committed by outsiders Managment thefts Corporate thefts Identity theft
  7. Business Villains	Chapter 7
  The learning objectives for this lesson are to gain an understanding of: Organized crime and business Money laundering
  8. The Investigative Process	Chapter 8
  The learning objectives for this lesson are to gain an understanding of: Case initiation Case evaluation Goal setting and planning Investigation
  9. Interviewing Financially Sophisticated Witnesses	Chapter 9
  The learning objectives for this lesson are to gain an understanding of: The interview Interviewing financially sophisticated witnesses
  10. Proving Cases Through Documentary Evidence	Chapter 10
  The learning objectives for this lesson are to gain an understanding of: Document collection Document organization The process of proof The logic of argument Proof through inference
  11. Analysis Tools for Investigators	Chapter 11
  The learning objectives for this lesson are to gain an understanding of: Why you use analysis tools Associational analysis Temporal analysis
  12. Inferential Analysis	Chapter 12
  The learning objectives for this lesson are to gain an understanding of: How inferential analysis helps What is an inference network Investigative inference network The key list Constructing an investigative inference chart Plotting the chart Some tips for charting success Applying the chart to the investigative process
  13. Documenting and Presenting the Case	Chapter 13
  The learning objectives for this lesson are to gain an understanding of: Creating a system The casebook system Report writing Testifying as a financial expert

Sample Exam Questions:

1. The 2004 Association of Certified Fraud Examiners (ACFE) study shows that the largest dollar amounts were fraudulently obtained by:

a. Men in the 30 - 40 age group with a high school education or less with a criminal record.

b. Women with graduate degrees working as secretaries.

c. Teenage hackers

2. When planning an interview for a financial investigation, the author recommends the investigator should:

a. Start out by interviewing employees of competitors, to gain an understanding of the industry.

b. Avoid interviewing former employees because they usually have a bias against the company.

c. Proceed in a non-confrontational manner when approaching interviews with both witnesses and suspects.

d. Assume there are quite a few eyewitnesses to a financial crime, although they may be hard to identify.