BUS443 Advanced Auditing Fraud Detection
The following topics are covered in the course:
- Who Commits Fraud and Why?
- Recognizing the Symptoms of Fraud
- Identifying Relevant Resources for Fraud Prevention
- Financial Statement Fraud
- Revenue and Inventory Fraud
- Liability, Asset, and Inadequate Disclosure Fraud
- Auditing Ethics
- Moral Philosophy and Ethical Reasoning: Resources for Decision Making
- The Accountant in Society: Deciding for Ethical Action
Upon successful completion of the course the student should have the ability to:
- Understand basic concepts and principles related to fraud prevention and detection.
- Describe who will commit fraud and why.
- Understand the responsibilities of the auditor to design the audit to detect material misstatements due to fraud.
- Explain the responsibilities of management to prevent fraud and the various measures they might use to do so.
- Understand how the two types of fraud described in the auditing standards, fraudulent financial reporting and misappropriation of assets, occur and how they can be detected.
- Explain how the Accounting Standard¿s Conceptual framework, the principles of moral philosophy, and the Professional Code of Conduct for the Accountant function as tools for the accountant to avoid fraudulent decisions.
- Analyze situations where fraud is more likely to occur using the fraud triangle.
- Evaluate the impact of the environment (industry, economic conditions, legal and regulatory) on predicting fraud.
- Develop the skill to make ethical decisions in the business world that reflect both technical competency and ethical awareness.
- Use the principles from moral philosophy and the guidance provided in the Accounting Standard¿s conceptual framework to avoid fraudulent decision making.
- Communicate with fraud specialists and auditors about fraud prevention and detection
Lecture and discussion of fraud cases
The course is at the advanced level in the master program. The course may be studied independently, but some prior knowledge in accounting is recommended.
MRR411E, Auditing I
Requirements for course approval
80% of the weekly homework must be submitted when due.
A short paper describing a fraud observed by the student must be submitted.
School exam written in English, 4 hours.
Albrecht (2015) Fraud Examination, 5th edition.
Stuart, I., B. Stuart, LJT Pedersen (2014) Accounting Ethics.
- ECTS Credits
- Teaching language
Autumn. Offered Autumn 2018
Professor Iris Stuart, Department of Accounting, Auditing and Law, NHH Norwegian School of Economics