GonzagaUniversity
School of Business Administration
MAcc 699-03 and ACCT 489 – Forensic Accounting Lab
Spring 2010
Professor: Sara Melendy, Ph.D.
Office: Jepson 248
Phone: 509-313-7031
Email:
Office Hours:TBA or anytime by appointment
Pre-requisites:
Students should currently be enrolled in, or have already completed, ACCT 464 (Auditing) or be able to demonstrate similar experience.
In addition, the class is “by application only.” While preference will be given to graduate students, senior undergraduate students are also encouraged to apply.
Required Materials:
Access to Blackboard and your Gonzaga e-mail
Course Objectives:
The Justice for Fraud Victims Project (JFVP) is a joint partnership of state, local and federal law enforcement officials, local Certified Fraud Examiners (CFEs), and GonzagaUniversity students and faculty formed to assist victims of fraud in Eastern Washington. JFVP’s goal is to assist victims of suspected financial fraud in cases where forensic investigative services are limited or too costly. With the assistance and oversight of CFEs and state and federal law enforcement, students will assist victims in establishing the method by which a fraud was perpetrated and in quantifying the damages so the case can be prosecuted. Ultimately the goal is to assist the victims in obtaining justice if a fraud has occurred. At the same time, accounting students will obtain real world experience in the field of forensic accounting.
The class will use forensic accounting techniques to investigate real cases that are brought to the JFVP by various enforcement agencies (federal, state, city, etc.). Teams of students (three to four per team) will work on each case to determine if a fraud has occurred and, if so, if it is prosecutable. The teams will be assisted by volunteers from various law enforcement agencies and by mentors from the local chapter of the Association of Certified Fraud Examiners.
Course Format:
During the first two weeks of the course, the class will meet as a whole to discuss such things as the investigative process, chain of custody, the forensic accounting report, etc. During the remainder of the semester, you will meet weekly with your team and your CFE mentor to work on the case your team has been assigned. Approximately every two weeks(see course schedule) the class will meet together and each team will make a presentation to the rest of the class. The presentations will be geared towards updating the class on how the team’s investigation is proceeding. We will discuss each case as a class including asking questions and making suggestions. Additional class time may be spent on new material such as case studies and guest speakers. Teams will prepare a written forensic accounting report for each case they investigate (an interim report will need to be prepared for cases that are still in progress at the end of the term).
Information about team assignments and meeting schedules are posted on Blackboard along with contact information for the mentors.
It is up to each team to decide how they would like to divide the workload; however, your team should designate a single person as liaison to send emails to the team mentor and to me. This will avoid much confusion and duplication of effort when it comes to scheduling meetings, obtaining evidence, and getting your questions answered quickly and efficiently.
There will be at least one peer evaluation during the class. However, if any issues arise, you should do your best to address them as soon as possible rather than waiting until the peer evaluation.
Mentors:
Each team will be assigned a CFE mentor to assist them with their investigation (see list of mentors on the last page of the syllabus). Initially, the mentors will be pre-scheduled to meet with the teams for up to four hours a week for the first two weeks. I will also attend the meetings. After that time, the teams will be free to set their own schedules with the mentors.You can choose to shorten your meetings, cancel them, or reschedule them as needed; so long as you don’t overlap any other team meeting time (I cannot be in two places at once). Please be respectful of your mentor’s time and plan ahead (at least several days) if you want to cancel or reschedule. Please be sure to confirm any meeting changes with your mentor, the mentor coordinator, and me via email. You are welcome to meet as a team without your mentor as often as you like.
A conference room (Jepson 251) has been reserved for you to use during your scheduled meeting times for the duration of the class. If you change your meeting time, or wish to meet at additional meeting times, it is up to you to reserve a new conference room or arrange a new meeting location.
Remember, these mentors are voluntarily providing their time and expertise so please treat them with the utmost respect and professional courtesy. Many certifications (including the CFE designation) require references. A positive experience in this class may provide you with a potential future reference.
Confidentiality:
You will be asked on the first day of class to sign a confidentiality agreement that stipulates that you will not share the information you learn in your case with ANYONE outside the class and that any evidence that you review is to stay in the business school at all times. This is not a casual request. You are reviewing confidential, law enforcement sensitive evidence that crime victims and law enforcement are providing to us as part of this project. You must not share any information with your friends, family, significant other, or even other faculty. The consequences of failing to abide by this agreement will include a grade of F in the class and also could include exposure to civil and/or criminal liability for you personally and for the University.
Evidence and Chain of Custody:
The evidence that you will be reviewing is highly confidential and MUST STAY IN THE BUSINESSSCHOOL at all times. You will be allowed to type some of the information into your computer(s) for later use but identifying items such as names and account numbers must not be included in your electronic files. You can document dollar amounts, general ledger account names and codes, and dates. Your mentor will provide necessary guidance in the area of what information can be documented. If necessary, you may use an alias to identify a victim or a suspect. When you review evidence, the chain of custody must be maintained. One of your team will be expected to sign the evidence log when the evidence is moved from my office to the conference room and will also be responsible for obtaining my signature as your proof that the evidence was returned (hopefully, we won’t have to deal with any evidence in sealed plastic baggies!) =). If you need to review the evidence at another time (with or without your mentor) you will need to make an appointment with me to obtain access. When not in use, the evidence will remain locked up, much as it would be in an evidence locker at the police station. A logbook will be used to ensure chain of custody is maintained. Evidence will need to be signed out for use and signed in upon return.
Resources:
The Spokane County Prosecutors’ Office and the Spokane Police Department have made some of their training material available to us for use in investigating cases. Much like the actual evidence you receive on the cases, this material is highly confidential and should be treated as such. Although you may download a copy of the material for your own use during the class, do NOT leave copies of the material lying around anywhere. When you are finished using the material, please arrange to shred your hard copies and erase your electronic files.
Other material is publicly available such as the WashingtonState laws (called the “Revised Code of Washington”) and investigative resources such as federal, state, county, and local records. You are free to use these resources at will, however, keep in mind that information found on these sites should be treated carefully and respectfully and not publicized unnecessarily.
Communication:
You may be corresponding with several professionals outside of Gonzaga including, but not limited to, professional CFEs, law enforcement, and prosecuting attorneys. This class will provide an opportunity to polish your written communication skills. At all times your emails (including those to me) should be professional. These go without saying (but I’ll say them anyway):
- use proper titles on names (e.g. Detective Carr, Dr. Melendy)
- double-check your spelling and grammar (it helps to read your writing out loud and/or to let someone else read it before sending it)
- limit using your cell phones to send messages (those smart phones tend to change words to what it “thinks” you want to say)
- be concise
- be polite and diplomatic
- ensure no confidential information is included (e.g. no victim or suspect names or other identifying information).
It is expected that you will cc both the mentor coordinator (Marie Rice) and me on EVERY email that you send out to anyone outside the university (e.g. a mentor, a member of law enforcement, a prosecutor, etc.). One suggestion that may help is to create an email list that includes your team members, your mentor, Marie and me. Please note that you will NOT be emailing victims directly. As a matter of confidentiality, you will be emailing law enforcement and they will contact the victim on your behalf.
Grading:
Grades in the class will tentatively be based on the following:
40% Written Forensic accounting report(s)
30% Team presentations in class
10% Homework assignments and logbook
20% Professionalism -- including but not limited to:
- written communication
- participation in class (asking and answering questions)
- conduct during team meetings
- peer evaluation
Academic Integrity:
All students are expected to abide by Gonzaga’s Academic Honesty Policy as outlined in the Gonzaga University Student Handbook. Under the provisions of the Policy, anyone who gives or receives unauthorized assistance in the preparation of work at home or during tests in class will be subject to disciplinary action. Your name on any piece of work is our assurance that you have neither given nor received any unauthorized help in its preparation. Although collaboration is expected on team investigations, you should not work together on homework assignments as this will be perceived as you sharing your answers. Should you come across a situation that warrants further guidance, I will be happy to provide advice on appropriate conduct within the Policy.
All University policies with respect to cheating and/or facilitating academic dishonesty will be strictly enforced.
ACFE Code of Ethics:
Personal integrity is especially critical in the accounting profession. Accounting data has value only when people can rely on the integrity of the data and of the person preparing it. Thus, high expectations of academic integrity are a normal part of accounting classes. These expectations are especially important in a course devoted to the detection and investigation of fraud. All students in the class are therefore expected to abide by the ACFE Code of Ethics (a copy is appended to the end of this syllabus and is also posted on Blackboard). The ACFE Code of Ethics outlines the professional standards of the Certified Fraud Examiner profession. As part of this responsibility, students are expected to adhere to the highest standards of personal integrity. It is expected that you will demonstrate sound judgment and behave in a professional manner both to protect and maintain your own reputation, and the reputations of the Accounting Department, the School of Business Administration, and GonzagaUniversity.
Course Schedule:
The following course outline schedule is tentative and may be updated throughout the semester on the course web site (Blackboard). Unless otherwise noted, the class will meet from 4:00 – 5:15 in Jepson 124.
Jan.153:15pm-5:30pmin Jepson 126
Jan. 214:00pm - 5:15pmin Jepson 124 --- Homework #1 due
Jan. 28Guest Speaker: Craig Benden
Feb. 4Team meetings only (no formal class)
Feb. 11Presentations
Feb. 18Team meetings only (no formal class)
Feb. 25Presentations
Mar. 4Team meetings only (no formal class)
Mar. 11No class: Spring Break
Mar. 18Team meetings only (no formal class)
Mar. 25Presentations
Apr. 1Team meetings only (no formal class)
Apr. 8Team meetings only (no formal class)
Apr. 15Presentations
Apr. 22Team meetings only (no formal class)
Apr. 29Last class meeting - Final Presentations
Members of the Justice for Fraud Victims Project
- Jill Bolton – Assistant U.S. Attorney Prosecutor for Eastern Washington (Dept. of Justice)
- Shane Smith – Deputy Prosecuting Attorney (SpokaneCounty – Criminal Department)
- Stacey Carr – Detective (Spokane Police Department - Fraud Unit)
- Marie Rice – President of Spokane Chapter (Assoc. of Certified Fraud Examiners)
- Gary Weber – Accounting Programs Coordinator (GonzagaUniversity, School of Business Administration)
- Sara Melendy – Assistant Professor of Accounting (GonzagaUniversity, School of Business Administration)
- [name redacted] –Agent, Fraud Investigator (Federal Bureau of Investigations – Eastern Washington division)
- [name redacted]- Agent, Fraud Investigator (Internal Revenue Service – Criminal Investigations)
Spokane Chapter ACFE Spring 2010 Mentors
Mentor Coordinator: Marie Rice ()
- Marie Rice, CFE, CICA, CIA, SpokaneACFE Chapter President (Heiskell MacGillivray & Associates)
- [name redacted], CPA, CFE (Agent, Fraud Investigator at Federal Bureau of Investigations – Eastern Washington division)
- Lenore Romney, CPA, CFE, CVA, ACFE Chapter Training Director (Heiskell MacGillivray & Associates)
- Shelly Heston, CPA/ABV, CFE (Harper, Inc.)
Association of Certified Fraud Examiners – Code of Ethics
All Certified Fraud Examiners must meet the rigorous criteria for admission to the Association of Certified Fraud Examiners. Thereafter, they must exemplify the highest moral and ethical standards and must agree to abide by the bylaws of the ACFE and the Certified Fraud Examiner Code of Professional Ethics.
- A Certified Fraud Examiner shall, at all times, demonstrate a commitment to professionalism and diligence in the performance of his or her duties.
- A Certified Fraud Examiner shall not engage in any illegal or unethical conduct, or any activity which would constitute a conflict of interest.
- A Certified Fraud Examiner shall, at all times, exhibit the highest level of integrity in the performance of all professional assignments and will accept only assignments for which there is reasonable expectation that the assignment will be completed with professional competence.
- A Certified Fraud Examiner will comply with lawful orders of the courts and will testify to matters truthfully and without bias or prejudice.
- A Certified Fraud Examiner, in conducting examinations, will obtain evidence or other documentation to establish a reasonable basis for any opinion rendered. No opinion shall be expressed regarding the guilt or innocence of any person or party.
- A Certified Fraud Examiner shall not reveal any confidential information obtained during a professional engagement without proper authorization.
- A Certified Fraud Examiner will reveal all material matters discovered during the course of an examination which, if omitted, could cause a distortion of the facts.
- A Certified Fraud Examiner shall continually strive to increase the competence and effectiveness of professional services performed under his or her direction
MAcc 699-03 and ACCT 489page 1Spring 2010