ACG 4931-002(14783)

Fraud Examination

Tentative Syllabus – fall 2007

Class hours: Mondays, 7:10 p.m. – 9:50 p.m.

LA 331

InstructorGeorge R. Young II, PhD, CPA

(954) 762-5610 (Tower)

Fax: (954) 762-5245 (Tower)

E-mail:

Office locations, days, and hours

LocationDaysTime

LA 440Mondays and Wednesdays10:00 a.m. – 11:00 a.m.

LA 440Mondays and Wednesdays6:00 p.m. – 7:00 p.m.

Tower (Office 546)By appointment

Note: Most of my time at work is spent at my main office in Ft.Lauderdale (the Tower). I have voice-mail there. You are more likely to locate me at the Tower than at Davie. I am in Davie only on Mondays and Wednesdays. The best way to reach me is by e-mail. If you e-mail me, please place “ACG 4931” on the subject line; otherwise, I may inadvertently delete your message.

Objectives

This course is designed to (1) promote the development of analytical skills and (2) provide an overview of fraud examination from an accounting viewpoint. Fulfillment of these objectives will help you develop competencies the AICPA believes are necessary for accounting professionals. The principal methods employed to attain these objectives will be the use of videos, textbook(s), classroom interactions and analyses of fraud cases. You will be expected to work creatively in completing course assignments. Extensive use of the Internet and electronic interaction is a fundamental part of the course.

Required Materials

Albrecht, W. Steve, Conan C. Albrecht, and Chad O. Albrecht. 2006. Fraud Examination (2ed). Mason, OH: Thomson-Southwestern (ISBN 0-324-65115-5).

Hopwood, William S., Jay J. Leiner, and George R. Young. 2007. Forensic Accounting (selected chapters in eBook form). Chicago, IL: McGraw-Hill.To obtain these chapters, go to The ISBN number for this eBook is 0390797774.

Buckhoff, Thomas. 2007. Cardinal Wholesalers, Inc., a Fraud Examination/Auditing Case Simulation. Statesboro, GA: GSUCenter for Forensic Studies in Accounting and Business.

ACG 4931-002(14783)

Fall 2007

G. Young

Page 2

Class Policies

  1. You will experience a higher likelihood of doing well in this class if you read the textbook prior to coming to class and attempted all homework assignments.
  1. You are responsible for the following:
  1. Use of Blackboard website: Certain assignments, as well as selected solutions to homework exercises will be placed on blackboard. The address is
  1. Use of e-mail: You are required to have an e-mail account, either through FAU or a private provider. The account must accept attachments. Instructions to obtain an FAU e-mail account are available on the School of Accounting webpage. Also, you must have access to Word and Excel in order to view and use the information contained in the attachments. You are responsible for any announcements made via e-mail or blackboard.
  1. Unless instructed otherwise, all work to be submitted for consideration toward your course grade is to be attempted and completed on an individual basis.
  1. Appropriate classroom behavior is expected at all times, including respect for your instructor and peers. All cell phones and beepers are to be turned off or placed on silent mode while you are in the classroom. Disruptive classroom behavior is unfair to students who are attending class to learn, is unfair to the instructor, and will not be tolerated.

Academic Honesty and Classroom Conduct

A fundamental principle of academic, business, and community life is honesty. Violation of this ethical concept will result in penalties ranging from a grade of ‘F’ in the course to dismissal from the university. In every situation in which a penalty is assessed, a letter of fact will be included in the student’s file. In the academic environment, the following precepts are critical:

For most graded assignments, you are expected to work independently. However, team assignments typically require you to work with other students. For both individual and team assignments, you should be careful not to represent the work of others as your own. The Internet is a powerful tool that provides access to a wealth of information. Plagiarism guidelines that apply to printed materials also apply to information and materials obtained from the Internet.

Accommodations for Students with Disabilities

Students may seek accommodations in accordance with the Americans with Disabilities Act of 1990 (ADA). Students with disabilities who need academic accommodations should review the University’s ADA policy and work directly with the Office for Students with Disabilities (OSD). Students who require special accommodation due to a disability are required to properly execute the required procedures and must register with the OSD and follow all OSD procedures.

ACG 4931-002(14783)

Fall 2007

G. Young

Page 3

All students are referred to Chapter 6C5-4.001, entitled “Honor Code, Academic Irregularities, and Student’s Grievances,” of the Student Handbook. It is the policy of the School of Accounting to adhere to the provisions of this section. Faculty of the School of Accounting will secure the maximum penalty in the event a violation of this section is observed.

School of Accounting Discussion List

If you major or minor in accounting, you are expected to subscribe to the School of Accounting discussion list. To subscribe, follow the instructions provided on the School of Accounting web page (at On this list is posted valuable announcements and all students are responsible for anything posted to this list.

Grade of Incomplete

Note that a “grade” of incomplete is not a substitute for a poor grade and is rarely granted. In accordance with the policies of the School of Accounting and the College of Business, an “incomplete” will be given only under the following circumstances:

  1. You are otherwise passing the course, i.e., you have earned a grade of “C” or better, and
  2. You have an excused absence that prevented you from completing course requirements by the end of this semester.

Withdrawals: If you decide to drop this class, you are responsible for completing the required paper work.

Important dates

Last day to drop a course without receiving a “W” (fee liable) is August 31.

Last day to drop a course without receiving an “F” (fee liable) is October 19.

(Note: These dates are furnished for your convenience; you are responsible for confirming the accuracy of these dates with the university registrar.)

Tentative Grading Policy

Assignments 10

Case (Cardinal Wholesalers, Inc.) 10

Research paper & oral presentation 20

Mid-term examination 30

Final examination 30

Total points100

No makeup examinations will be given.

ACG 4931-002(14783)

Fall 2007

G. Young

Page 4

Case

Use of the Cardinal Wholesalers, Inc. case is conditioned on the bookstore obtaining this case from the author. If the bookstore is successful and the case is obtained near the beginning of the semester, the case is due on November 5.

Assignments

To earn the maximum grade for assignments, you must submit three (3) assignments from the categories A, B, and C (below). No more than two (2) of these three assignments may be from the same category or on the same topic. Each assignment has a maximum point value of 20 points. The assignments will be graded by considering the following criteria:

  • Originality
  • Content (including accuracy)
  • Organization
  • Style (including grammar)
  • Perceived level of effort.

Category A. Write a story about a real or imagined fraud case. If the case is real, cite the source of your story; if the case is based on a personal experience, please state that fact. Focus on information about what the perpetrator did and why you think he (or she) did it. Relate the information to the fraud triangle. Your story should be 3-5 pages. The act of submitting this assignment includes your authorization for me to use your story in this – and possibly subsequent – classes. This assignment must be submittedno later than September 24.

Category B. Based on the presentation of a guest speaker or an individual in a class video segment, prepare a critique of the presentation. Your critique should not be a summary of the presentation; it should contain your comments on the value of the presentation, including the ways in which it was valuable. You should also discuss the strengths and weaknesses of the presentation. The suggested length for this assignment is 1-2 pages. It must be submitted no later than one week after the presentation is given in class.

Category C.A short (3-4 pages) paper can be submitted on one of the topics listed below. The paper should provide the following:

  • A background or description of the type of fraud.
  • How to recognize the danger of this type of fraud.
  • Statistics relating to the particular type of fraud.

In completing this assignment you are expected to do research beyond the material in the textbook and provide citations of the sources used. The objective of this assignment is to provide greater in-depth treatment of a small portion of a topic rather than a broad summary. Any papers written for this category are due by November19.

ACG 4931-002(14783)

Fall 2007

G. Young

Page 5

Topics that may be used for Assignment Category C
Bankruptcy fraud / Government contract fraud
Check fraud / Identity theft
Credit card fraud / Internet fraud
Cyber crime / Insurance fraud
Degree mills / Money laundering
Divorce fraud / Mortgage fraud
Disaster fraud / Phishing
Elder fraud / Reporting fraud
E-commerce fraud / Securities fraud
Financial statement fraud / Scams against businesses
Fraud hotlines / Tax fraud
Fraud statistics / Telemarketing fraud
Health care fraud / Whistle-blowing

Please note that no late submissions of these assignments will be accepted. The written assignments should be placed in the digital drop box by the specified deadline. Late assignments will be deleted before grading.

Research Paper & Oral Presentation

Paper

  1. The paper is to be on a topic approved by the instructor (see list above, under Category C of Assignments for possible topics). On September 17 submit, in class, a one-page piece of paper containing the following information: Your name, the semester (fall 2007) and a brief description of the topic on which you wish to write your paper. I will communicate approval/disapproval within a reasonable period of time. If your proposed topic is disapproved, please resubmit another proposed topic by the time I specify. No more than two individuals may write a paper on the same topic; however, you may choose a subspecialty within the similar topic area. For example, if four students are interested in resume fraud, two may write on the general subject and the other two must choose an area within the resume fraud area, e.g., resume fraud in the medical field, and the area must be different from the area the other student chose. This subspecialty paper must contain a substantial amount of information about the particular sub-area chosen so that it can be distinguished from a paper written on the general area.

ACG 4931-002(14783)

Fall 2007

G. Young

Page 6

  1. The paper should not exceed five (5) pages (not including a title page), be double-spaced, single-sided, on 8.5” x 11” paper. The font size should be 12-point, except for the title page, which can be in a type size greater than 12-point.
  2. The paper should be in the format of a professional memorandum to the instructor and should include references (which are a part of the five pages discussed above).
  3. E-mailed papers will not be accepted.
  4. Late papers will not be accepted. This paper should be submitted no later than November 5.

Oral presentation

  1. You may volunteer to give a brief presentation of your paper that lasts approximately 10 minutes, not including 5 minutes for questions. This presentation will be worth bonus points (to be determined later). To earn the points, your presentation must be conscientiously given. You may find that one page handouts are beneficial.
  2. Unfortunately, there will not be enough time to accommodate presentations by each person in the class. I will have a sign-up sheet for these class periods in which presentations can occur.

Mid-term and Final Examinations

These examinations will be based on textbook content, any videos shown, and class discussions (including paper presentations). You may use, during the exam, one 8.5” x 11” page (both sides) of paper on which you have hand-written (or typed) self-created notes.

Homework

The assigned homework from the textbook will not be collected and graded. It is imperative, however, that you attempt the homework before seeing the solution. If you don’t, you may develop a false sense of security about your abilities.

Grading Scale

A = 100 - 90 C = 76 - 70

A- = 89 C- = 69

B+ = 88 - 87 D+ = 68 - 67

B = 86 - 80 D = 66 - 60

B- = 79 D- = 59

C+ = 78 - 77 F = below 59

ACG 4931-002(14783)

Fall 2007

G. Young

Page 7

Guest Lecturers

During the semester, I may have one or more guest lecturers. Please make every effort to attend class during the periods in which these guests appear. They take time out of their schedules to appear and are not compensated. In some cases, they may beyour future employers.

ACG 4931-002(14783) Fall 2007 Fraud
Tentative Syllabus
Date of Class / Assignment for Class Meeting* / Text Discussions*
Aug. 27 / Introduction and Chapter 1 / Ch. 1: DQ-7,8,9; SC-6,12; EC-2,3
Sept. 3 / Labor Day – No class
Sept. 10 / Chapter 2: Who and Why
Chapter 3: Fighting Fraud / Ch. 2: DQ-6,9; SC-1,4,5,14; EC-1,5
Ch. 3: DQ-7,10; SC-6,8; EC-1,2; IA-1,2
Sept. 17 / Chapter 4: Prevention / Ch. 4: DQ-2,5,9; SC-5,7;EC-1,2,4
Sept. 24 / Chapter 5: Symptoms / Ch. 5: DQ-1,3,4; SC-1,3; EC-1,2,5; IA-2
Oct. 1 / Chapter 6: Proactive / Ch. 6: DQ-2,3,4,7; SC-1,3,5; EC-2; IA-2,3
Oct. 8 / Chapter 7: Theft Acts
Chapter 6 (Hopwood): Forensic Science, pp. 169-178 / Ch. 7: DQ-2,5,8,9; SC-3,6,12; EC-1; Debate
Ch. 6 (Hopwood): DQ: 36-40
Oct. 15 / Chapter 8: Concealment / Ch. 8: DQ-1,4; SC-4,6; IA; Debate
Oct. 22 / Midterm Exam
Oct. 29 / Chapter 16: Bankruptcy, Divorce, and Tax Fraud
Chapter 11 (Hopwood): Tax Fraud / Ch. 16: DQ-6,7,8,9; SC-3,16,18; EC
Ch. 11 (Hopwood): DQ: 26, 31-36, 38, 40, 44, 45, 50-52
Nov. 5 / Chapter 9: Conversion
Chapter 12 (Hopwood): Bankruptcy, Divorce, and Identity Theft (particularly pp. 372-383) / Ch. 9: DQ-1,4,5,7; SC-3,4,11; EC-3; IA-1,3; Debate-2
Ch. 12 (Hopwood): DQ: 50-60; Case 62
Nov. 12 / Veteran’s Day – No class
Nov. 19 / Chapter 10: Methods & Reports / Ch. 10: DQ-1,3,4,6,7; SC-1,2,7; EC-1,3; IA-1,3
Nov. 26 / Chapter 13: Liability & Asset / Ch. 13: DQ-29; SC-1,7,9; EC-1; Debate-2
Dec. 3 / Chapter 14: Consumer Fraud / Ch. 14: DQ-3,6,7; SC-4,5; EC; IA
Dec. 10 / Final Exam

*All chapters and text discussion items are for the Albrecht et al. text except as noted.

The following meanings are assigned to abbreviations:

DQ = Discussion Questions

SC = Short Cases

EC = Extensive Cases

IA = Internet Assignments