BUS443 Fraud Detection

• Topics

   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

• Learning outcome

  Upon successful completion of the course the student should have the ability to:

  Knowledge

  • 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.

   

  Skills

  • 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.

  General competence

  • Communicate with fraud specialists and auditors about fraud prevention and detection

• Teaching

  Lecture, discussion of fraud cases in the textbook and from recent Wall Street Journal articles.

  The course will be streamed on-line at the assigned class time. There will be no requirement to attend class. The class sessions will be recorded so students will have access to the lectures after they have occurred. A detailed course outline, including which digital platforms will be used, will be published in Canvas.

• Recommended prerequisites

  The course may be studied independently, but some prior knowledge in financial statements/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.

• Assessment

  Digital home exam, written in english, 4 hours

• Grading Scale

  A-F

• Literature

  Albrecht (2019) Fraud Examination, 6th edition.

  Stuart, I., B. Stuart, LJT Pedersen (2014) Accounting Ethics.

  Both books are available in the Campus bookstore. They can also be ordered online from the bookstore and shipped.