ACCTG 505: Fraud Examination Fall 2015 COURSE INFORMATION Instructor: Jim Vogt, CFE E-mail: [email protected] Office: SSE 2427 Class Meetings: Tu - 7:00 to 9:40, EBA 340 Office Hours: Tu/Th - 12:30 to 1:30, Wed – 4:30 to 6:30 and by appointment Phone: 619-508-6850 Course Design Welcome to Fraud Examination, a course designed to offer undergraduates and graduates an accounting elective that builds on your audit coursework, but is not limited to an audit perspective. We will study the major schemes used to defraud organizations and individuals. We will work to increase our skills in the areas of fraud prevention, detection, analysis and some skills relating to investigations. As a broad survey course, you will be exposed to skills and tools that can help you become better auditors, consultants, tax professionals, and managers, as well as more astute employees, investors, and world citizens. Goals and Objectives As you move forward through the accounting program here at SDSU, the coursework you encounter is designed to provide a high quality experience to prepare accounting students with the foundation in accounting and general business knowledge for their professional career. With that in mind, your undergraduate accounting experience was designed with the following goals in mind: BSBA student will graduate being: 1. 2. 3. 4. 5. Effective Communicators Critical Thinkers Able to Analyze Ethical Problems Global in their perspective Knowledgeable about the essentials of business MSA Program Goals MSA students will graduate being able to: Compare, contrast, interpret, or criticize accounting and business decisions and information using professional business communication Actively participate in team decision making Apply ethical judgment and professional standards in analyzing situations and formulating accounting and business decisions Use relevant research tools and academic/professional literature to analyze or take a position in accounting and business situations Address unstructured problems in the areas of accounting information systems, financial reporting, or taxation Identify and discuss the significance of diversity and cultural differences in the global business environment This financial module primarily focuses on the Analytical/Critical Thinking, Communication, and Ethical Reasoning Skills while secondarily touching on the Technical Competence, Global Perspective goals. Student Learning Outcomes To provide students in accounting with a course that examines one of the biggest problems facing business in the 21 st Century: Fraud. By the end of the semester, students should be able to: Define the nature of fraud, who commits it and why, Identify methods to prevent fraud, Recognize the symptoms of fraud, Evaluate approaches to detecting fraud, Comprehend and apply fraud investigation techniques, Apply ethical decision-making skills to fraud scenarios. Make effective oral presentations in fraud awareness that are informative as well as persuasive, and Write well organized, readable case analyses, essays and reports using appropriate fraud and accounting terminology. Enrollment Information Course Prerequisites: ACCTG 421 or ACCTG 626 or equivalent. Course Materials Principles of Fraud Examination, by Joseph T. Wells, CFE, CPA from John Wiley & Sons, Inc. – Fourth Edition One of These Two Paperbacks is Required: The Soul of Money: Reclaiming the Wealth of Our Inner Resources Paperback – October 17, 2006 by Lynne Twist (Author), ISBN-13: 978-0393329506 ISBN-10: 039332950X Edition: Reprint OR Your Money or Your Life: 9 Steps to Transforming Your Relationship with Money and Achieving Financial Independence: Revised and Updated for the 21st Century Paperback – December 10, 2008 by Vicki Robin (Author), Joe Dominguez (Author), Monique Tilford (Author) ISBN-13: 978-0143115762 ISBN-10: 0143115766 ‘These course materials are available at the SDSU Bookstore (it matches lower prices from Amazon and others in most cases). The Bookstore is a not-for-profit campus partner and its proceeds support SDSU initiatives.” Course Structure and Conduct Course Requirement in Community/Service Learning: Student teams will participate in providing fraud awareness to a group in the community by designing, developing, and presenting a topic that can increase the public’s fraud awareness (as consumers, employees, citizens). We will frame many of the class activities and discussions in terms of how we can most effectively disseminate this knowledge to the target audience. Students will need to gather initial fraud awareness information from their selected audience and use this pre-survey information to design their presentations. Following the presentations, students will collect some post-survey information from the audience and use this to evaluate their efforts. Many of our cases and chapters focus on the theories and practices in ethical decision-making, a key component of fraud prevention. Students will have the opportunity to reflect on their work in designing fraud awareness presentations, and then compare their actual work to textbook materials. Our final class will include a discussion of how the accounting professional can best serve the public, in light of each team’s experience. Personal Development and Awareness: Students will have the opportunity to explore various personal development tools such as mindfulness meditation, values assessments, and their relationship with money by visiting websites, watching videos, and taking surveys. We will discuss these tools and our reactions to them during class, as a way to help further develop ethical decision-making, critical thinking and effective communication skills. SDSU Writing Center: Students can find support and help in the various writing assignments by using the SDSU Writing Center. It is located in Love Library, Room LA1103, next to the circulation desk. Hours of operations are Mondays through Wednesdays from 8 am to 9pm, Thursdays from 9 am to 5pm and Fridays from 9am to 2pm. You can just drop by or make an appointment. Here is the website: http://www.writingcenter.sdsu.edu/ Teams: You need to form teams of 5 students. Ideally, teams should include 1) both genders, and 2) both native and nonnative English speakers. Please have teams formed by Tuesday, 9/1 One team member needs to email me AND bring a team listing to class on 9/1. Blackboard Courseware: You can access Blackboard by visiting http://courses.sdsu.edu. I will use this site to post course materials, direct you to additional external links of interest, post grades, and most important, to communicate with you between classes. It is your responsibility to check this site during the week and to check your email. (Remember that your email address, PIN, etc. can only be edited or changed by you, using SDSU’s WebPortal.) Grading Scale: Final Grades will be determined based on the following scale: 90% of the points and above will qualify for the A range (including A- and A); 80% - 89% of the points will qualify for the B range (including B-, B and B+), 73% - 79% will qualify for a C or C+, 70% 72% will earn a C-, and below 70% will earn a D. (NOTE: Scoring less than 73% of the points would not constitute graduate-level work and will be dealt with on a case-by-case basis.) Grades are based on both effort and effectiveness, with more weight being awarded to the actual results. So while effort is important and does earn some reward, the final outcome or result is what matters most. For grading purposes, a grade of A exceeds the course (and assignment) requirements in both quantity and quality; a grade of B exceeds in some area; a grade of C meets the minimum requirements; a grade of D fails to meet the minimum requirements; and a grade of F drastically fails to meet the minimum requirements. Graded Assignments: (Check the Schedule for Due Dates) During the semester, you will produce a variety of “products” for me to evaluate, both to help you conquer the new materials, as well as improve your existing skills in written and oral communications. Additionally, these data points (graded assignments) will give me a basis to form an opinion as to your final grade for the course. The final grade is the university’s indicator of your level of achievement in the course. The more lasting record is what you do with the results of your 15-week investment, and of which, you (and time) will be the best evaluator! The following categories describe what you will be required to turn in for a grade, along with a weighting of each requirement. Please refer to the class schedule for due dates, and check Blackboard for more complete instructions for the various assignments. Write-Ups (10%): You will individually complete and turn in various assignments noted in the schedule. This will include (but not limited to), write ups, online assignments, reflection essays, and speaker research. Please check the course schedule for the various due dates. Participation (5%): You have an opportunity (and responsibility) to share your ideas and observations when we discuss various readings and cases, the Write-Up questions, videos, the personal development tools, etc. Class participation can only be earned IF you are present in class; you voluntarily share your ideas, and provide answers to questions I raise in class. In the News (5%) To help you become more aware of fraud in our society, you need to develop a pattern of skimming and reading business headlines on fraud articles, information, statistics, etc. We will start each class with time devoted to the headline sharing (In the News). To earn credit for an In the News article, you must type up a brief (one to two paragraph) summary of your article, fully reference it as a citation and discuss (one paragraph) how it ties to what we are studying in class. Some students also find this a good way to be able to share (participate) more fully in class and earn Participation credit. (Note: To just earn participation credit, you do not need to turn in a write up.) Relationship with Money Essay (20%): Individuals will prepare an essay reflection on their personal relationship with money, relating their reflections to themselves, to specifics from assigned books (Twist or Robin), and to the profession. Exam (35%): The exam will include multiple choice questions, short case analysis, and an In the News analysis, similar to the problems and cases we discuss in class. Group Presentations (25%): At the end of the semester, 1) your team will present to the class your findings on a local fraud the team has investigated and analyzed. The presentation and write up should be in the form of a fraud case. 2) Your team will design and develop a short fraud awareness presentation to a community group, prepare and submit a report to me, and then discuss your results with the class at our final meeting. Academic Honesty The University adheres to a strict policy regarding cheating and plagiarism. These activities will not be tolerated in this class. Become familiar with the policy (http://www.sa.sdsu.edu/srr/conduct1.html). Any student suspected of academic dishonesty will be reported to the SDSU Center for Student Rights and Responsibilities; if found responsible for academic dishonesty, the student may receive an F in ACCTG 505. Examples of Plagiarism include but are not limited to: Using sources verbatim or paraphrasing without giving proper attribution (this can include phrases, sentences, paragraphs and/or pages of work) Copying and pasting work from an online or offline source directly and calling it your own Using information you find from an online or offline source without giving the author credit Replacing words or phrases from another source and inserting your own words or phrases Submitting a piece of work you did for one class to another class If you have questions on what is plagiarism, please consult the policy and this helpful guide from the Library Turnitin Students agree that by taking this course all required papers may be subject to submission for textual similarity review to Turnitin.com for the detection of plagiarism. All submitted papers will be included as source documents in the Turnitin.com reference database solely for the purpose of detecting plagiarism of such papers. You may submit your papers in such a way that no identifying information about you is included. Another option is that you may request, in writing, that your papers not be submitted to Turnitin.com. However, if you choose this option you will be required to provide documentation to substantiate that the papers are your original work and do not include any plagiarized material. Students with Disabilities If you are a student with a disability and believe you will need accommodations for this class, it is your responsibility to contact Student Disability Services at (619) 594-6473. To avoid any delay in the receipt of your accommodations, you should contact Student Disability Services as soon as possible. Please note that accommodations are not retroactive, and that accommodations based upon disability cannot be provided until you have presented your instructor with an accommodation letter from Student Disability Services. Your cooperation is appreciated. Tentative Course Schedule I reserve the right to make adjustments to the schedule based on what is best for the class learning experience. Please check Blackboard (Bb) for the most current updates. Week Date Topics Reading Assignment & Homework: Graded Assignments DUE: 1 8/25 Course Overview Chapter 1 Index cards (in class) Skimming Chapter 2 Team List Cash Larceny Chapter 3 Reflection Essay 1 What is fraud examination? 2 9/1 Write Up 1 3 9/8 Billing Schemes Chapter 4 Check Tampering Chapter 5 Write Up 2 4 9/15 Schemes: Chapter 6 Payroll Chapter 7 Expense Reimbursement Chapter 8 Money 1 Register Disbursement 5 9/22 Lab Day – At the Movies Chapter 10 Write Up 3 Fraud and Corruption 6 9/29 Fraudulent Financial Statement Schemes Chapter 12 (use Chap 11 as a review) Write Up 4 7 10/6 Conducting Investigations Chapter 15 Write Up 5 Interviewing Witnesses Chapter 16 Speaker 1 Research Tentative: Guest Speaker TBD Team Update on Both Projects; 8 10/13 Write Up 6 Money 2 9 10/20 MIDTERM 10 10/27 Group Meetings with Vogt Chapters 1-8, 10, 12, 15, 16 Readings, Speaker Midterm Team Update Money Essay Speaker 1 Write-Up 11 11/3 Tentative: Guest Speaker 12 11/10 Lab Day - Work on Money Essay/Projects 13 11/17 TBD 14 11/24 Lab Day - Work on Projects TBD Speaker 2 Research TBD Team Update Due Check in w/Vogt (email update) Speaker 2 Write-Up 15 12/1 Lab Day - Work on Projects 16 12/8 Group Presentations Reports & Cases Group Cases 17 12/15 FINAL EXAM Meeting Chapter 17 – The Big Picture Community Service Reports; Community Service (Fraud Awareness) Discussions Reflection Essay 2 Service Learning Projects Discuss Fraud Awareness Changes to the course schedule, if any, will be announced either in class, on Blackboard, or through email.