spring 2016 - La Salle University Computer Science Servercsc-srv1.lasalle.edu/mccoey/syllabi/syllabi 2015... · Web viewPrior to that, he served in a variety of in-house fraud and

FACC 703: Occupational Fraud: Principles and Practices

OCCUPATIONAL FRAUD; PRINCIPLES & PRACTICES – SPRING 2016

INSTRUCTOR CONTACT INFORMATION

Instructor: Paul E. ZikmundLocation: OnlineOffice Hours: None – Phone Appointment OnlyEmail: [email protected]: 914-559-8740

INSTRUCTOR BIO

Paul E. Zikmund serves as Deputy Chief Compliance Officer at Bunge. He is responsible for managing a global team providing fraud investigation, detection and deterrence services to help reduce manage the Company’s fraud risk. He has nearly 20 years of experience in this field and has effectively managed global fraud and forensic teams at various Fortune 500 companies. Paul, who is a Certified Fraud Examiner and Certified Forensic Financial Analyst, designs and implements programs and controls to detect fraud. He manages investigations conducted in response to allegations of fraud, misconduct or abuse occurring within Tyco. Paul also leads Tyco’s fraud risk assessments and fraud awareness training. His years of public and private sector experience includes the investigation of complex financial frauds, conducting forensic audit engagements and fraud risk assessments, and providing litigation support for a variety of industries.

Before joining Bunge International Paul was a Director Forensic Audit at Tyco International and Directory Litigation Support Services at Amper Politziner & Mattia, LLP, Paul was a Principal, Fraud and Forensic Services at SolomonEdwardsGroup, LLC and a Senior Manager – Enterprise Risk Services with Deloitte and Touche, LLP. Prior to that, he served in a variety of in-house fraud and forensic investigative roles with The Dow Chemical Company, Nortel Networks, and Union Carbide Corporation. He began his career as a Municipal Police Officer, and then a State Trooper and Special Agent with the Attorney General’s Office in the Commonwealth of Pennsylvania.

Last Modified: 05/27/10 Page 1 of 18 © 2010 La Salle University

mailto:[email protected]


Paul received a Bachelor of Science degree in the Administration of Justice and a Certificate of Accountancy from The University of Pittsburgh. He continued his education with a Masters of Business Administration at the University of Connecticut a Masters of Accountancy at Auburn University and a Masters of Business Ethics and Compliance from the New England College of Finance. Paul has authored various articles relating to fraud detection, prevention, and investigation. He speaks regularly at seminars and conferences on the topic of fraud and also teaches a graduate level fraud and forensic accounting course at Rider University in New Jersey.

Paul is a former Board member of the Philadelphia Chapter of the Association of Certified Fraud Examiners and the National Association of Certified Valuation Analysts Certified Fraud Deterrence Board.

COURSE OVERVIEW

COURSE DATES

January 11, 2016 – March 8, 2016

COURSE OUTCOMES

Occupational fraud and abuse is described as the use of one’s occupation for personal enrichment through the deliberate misuse or misapplication of one’s employing organization’s resources or assets. Through the use of real-life case examples, this course will illustrate the types of persons most likely to perpetrate occupational fraud, under what conditions fraud might be committed, and the specific schemes used to defraud organizations of amounts ranging from hundreds to millions of dollars.

Topics will include discussions on investigating, preventing and detecting a variety of fraud schemes related to the following:

Asset misappropriation schemes Financial Statement fraud Bribery & corruption schemes



REQUIRED TEXTBOOKS AND MATERIALS

TEXTBOOKS/CASES Text: Forensic Accounting and Fraud Examination, Kranacher et al, Wiley, April

2010, ISBN-10: 047043774X Additional readings to be assigned throughout the course. Material posted to

blackboard prior to class. Please check before each class for the schedule of assigned readings.

RECOMMENDED READINGS/WEBSITES

1. www.Acfe.com2. www.Sec.gov3. www.theiia.org4. www.wsj.com

TECHNICAL SUPPORT

Technical support information will be provided by Academic Computing Technology.

COURSE STRUCTURE

All other course work will be done online. When working online, all discussions, assignments, conversations, and postings that are scheduled and due in a week’s time are expected to be completed in that week. The online week runs from midnight on Sunday evening to midnight Sunday evening the following week. If you have a schedule issue, please contact your instructor.



Week 1: Basic Framework

Readings and Audio Powerpoint: Course Introduction and Procedures - Introduction to Fraud

Text: Chapters 1&2

Core Foundation of Fraud Investigation & Forensics Professional Auditing Standards & Responsibilities of Auditors Careers in Forensics

Posted Reading: Forensic Accounting as an Investigative Tool: Developing a Model Curriculum for Fraud and Forensic Accounting, M. Houck, et al

Discussion Board (DB) Assignment

Discussion Board

1. Discuss what skills you believe are necessary to be a fraud examiner. Can these skills be taught or only developed with experience?

2. Do you believe all Accounting Degree programs should have a course related to fraud detection and/or investigation?

IndividualAssignment

Individual Assignment: Submit a 3 page paper on the development of the fraud examiner/forensic accounting profession since the 2001 Enron fraud.

Due Sunday evening 9:00PM EST.

Week 1 Why Individuals Commit Fraud: Fraud Triangle, Ethics

Readings and PPT Slides

Text: Chapter 3 Who Commits Fraud & Why, Criminology Ethics

Posted Reading: The Fraud Diamond; Considering all Four Elements of Fraud & Playing Offense in a High Risk Environment

Powerpoint Slides

DiscussionBoard Assignment

Discussion Board:



1. Discuss factors that might drive an individual to commit fraud. 2. Why do you think it is important to understand what motivates employees to

commit fraud when you are planning to investigate the fraud scheme?


Individual Assignment: Submit a 3 page paper that discusses how an organization should incorporate the fraud triangle to reduce the risk of fraud/misconduct within their organization. Due Sunday by 9:00PM..

Week 2 Complex Frauds & Financial Crimes: US Banking System, Money Laundering, Asset Forfeiture

Readings Text: Chapters 4 Complex Frauds Financial Crimes

Posted Reading: Understanding Money Laundering

Discussion Board Assignment

Individual Assignment

Discussion Board

1: Provide two examples of money laundering and discuss how these crimes negatively impact the US economy?2. Why do you believe money laundering is a difficult fraud to investigate?.

Money laundering has become a mechanism for financing terrorist activities. Research this topic and write a 4 page paper addressing the following:

1. Describe how and why terrorist organizations use money laundering a tool for financing their activities.

2. How can investigators detect and investigate these schemes?3. What specific types of evidence will be useful to investigate these crimes?

Assignment due by Sunday evening at 9PM

Week 3 Cybercrime



Readings and AudioText: Chapter 5 Cybercrime

Posted reading: Cybercrime articles


Discussion Board 1: Identify and briefly define three types of cybercrime

2: Is cybercrime a real threat? To whom? Discuss your response


Submit a 4 page paper discussing three types of cybercrime risks and identify how organizations and individuals can protect themselves from these schemes. Identify a real life case of cybercrime and discuss how it was detected and how it could have been prevented.

Assignment due by Sunday evening at 9PM

Week 4 Legal Environment: Rules of Evidence, Expert Reports, Civil and Criminal Court Systems

Readings and AudioAudio: Evidence Management

Text: Chapters 6 & 16

Posted Readings: ACFE Writing Effective Fraud Reports, Expert Witnessing


Discussion Board

1. In your opinion, are white collar criminals treated the same as criminals who commit violent crimes?

2. Why do you think companies, in most cases, refrain from prosecuting employees



who commit fraud against the company?


Submit a 4 page paper that 1) Explain the difference between litigating an embezzlement case in civil court and criminal court, and 2) Discuss the role of an expert witness/fraud examiner in each proceeding.3) Identify a real-life case where an expert witness was used to support the defendant or plaintiff in a fraud case.

Assignment due by Sunday evening at 9PM.

Week 4 Fraud Detection & Investigation: Red Flags of Fraud, Investigation Techniques and Direct/Circumstantial Evidence

Readings and AudioText: Chapter 7 & 8

Posted readings: Fraud Examination Checklist

Posted Reading: Exotic Embezzlement

DiscussionBoard Assignments

Discussion Board

1. Discuss three types of accounting anomalies and define why they are important to a fraud investigation.

2. Define circumstantial evidence and describe why this type of evidence is so useful .


Write a 3 page paper based on your reading of the chapters and the Exotic Embezzlement case addressing the following:

1. What sections of the fraud examination checklist were most helpful to the investigation and why?

2. Identify the specific evidence used to support a prosecution of this case.3. Identify the anomalies ot red flags of fraud present at the business




Week 4 Information Technology & Fraud Examination: Digital Evidence

Readings and Audio Text: Chapter 10 Information Technology and Fraud Examination


Discussion Board

1. What unique challenges and opportunities does digital evidence bring to fraud detection and investigation?

2. Describe two software packages and how each might help investigate fraud.


Case: You have just been called in to develop a proactive fraud detection process and your manager asked you about the use of digital evidence. Write a 3 page paper to respond about the benefits and challenges of using digital evidence to detect and investigate fraud. Identify a real life case where digital evidence during a fraud investigation.


Week 5 Interviewing Skills: Deceptive Behavior, Non-verbal Queues, Interviewing Process

Readings, Audio, and Video

Text: Chapter 9 Effective Interviewing & Interrogation Skills

Posted Video: ACFE Interviewing Video


Discussion Board

1. Discuss the importance of non-verbal behavior during the interview process.2. In your opinion, which characteristics are most important to successful

interviewers and why?

Individual



Assignment No individual Assignment this week: -

Week 6 Fraud Schemes: Skimming and Inventory Frauds

Readings and Audio Text: Chapter 11 Asset Misappropriation Schemes

Posted Reading: Enemies withinPosted Reading: Internal Investigations – Minimize RiskPosted Reading: Investigating Embezzlement

Discussion Board Assignments

Discussion Board

1. Based upon the Exotic Embezzlement article in week 8, discuss some ways that this fraud could have been prevented.

2. What evidence will help prove the Zappers fraud case?


Individual Assignment this week:

You just been hired as a Fraud Examiner to investigate an employee at an auto supplies store of skimming a percentage of cash payments made on a daily basis?

1. Investigative steps needed2. Evidence required to prove the fraud3. Red flags of cash receipts skimming schemes

Week 7 Fraud Schemes: Cash Disbursement Types- Billing and Fictitious Vendors

Readings and Audio Text: Chapter 12 Cash Disbursement Schemes

Youtube video: Angela Platt

Posted readings : Billing scheme frauds Parts 1-4, ACFE articles




Discussion Board

1. Use the internet to research a fraud that used a cash disbursement scheme. Discuss how the fraud was committed. Discuss controls that could have been in place to deter and detect this fraud. Post the reference to the fraud story.

2. Could the Angela Platt fraud have been prevented?

Only one original response is needed this week. You DO NOT have to respond to other student postings.


You have just been assigned to investigate the Angela Platt fraud case. Address the following in a two page paper:

1.

Week 8 Corruption: Behavior and Foreign Corrupt Practices Act

Readings and Audio Text: Chapter 13 Corruption and the Human Factor

Posted Reading: The FCPA and why it matters

Posted Reading: TRACE Anti-corruption report

Discussion BoardAssignment

Discussion Board

1. Discuss the effects of the FCPA on fraud and US Companies doing business globally

2. In your opinion, is the FCPA an effective deterrent for international bribery and corruption?


Case: You have been asked by a business director (BD) to attend a strategy meeting. The business wants to expand into a foreign country. The BD states that he’s heard of the law called the FCPA. He wants to know what it is and does it impact his efforts to develop business in the foreign country? Please respond in a memo to the BD. His name is Will Block. Your memo should be thorough and provide an overview of the FCPA and the risks presented in this country.



Due Sunday by 9PM.

1.

Week 14 FINAL EXAMINATION (Details to be Announced) (100 points)

COURSE CONTACT HOURS

PARTICIPATION

1. Active and informed participation in online discussions related to weekly questions and individual assignments.

2. Completion of individual case studies or article reviews and/or searches.3. Critical evaluation and discussion of the case or articles in the online journal.4.

PROJECT/ASSIGNMENT DUE DATES

Individual Case Studies

Students will be assigned a case study related to the detection and investigation of fraud. Students will evaluate the factors listed within the case study and develop a case plan to investigate the identified red flags. The completed assignment will consist of a written paper and PowerPoint presentation to management outlining the results of the findings.

Individual Weekly Assignment

Students will be assigned individual papers (2-4 pages in length) during the course. Please be sure to cite your references and check grammar before submission.



EXPECTATIONS

Student Expectations:

Complete all readings and assignments.. Check the online course material and discussion forum on a regular basis (each week

runs from Monday – Sunday; new material will be available each Monday). Participate in online discussion board questions. Take initiative to review suggested reading sources and contribute items of interest to

course discussions. Contact the instructor immediately if any problems arise that may prevent the student

from completing the above requirements.

Instructor Expectations:

Post all course materials and assignments in a timely manner. Make him/herself available by e-mail and/or online chat for student questions or

concerns. Check the course each day and contribute to the online discussion areas. Provide each student with weekly feedback on his or her progress in the course. Grade and return all assignments in a timely manner.

RUBRIC FOR EXPECTATIONS IN ONLINE DISCUSSION QUESTIONS

Provide a breakdown of all graded elements in the course. Rubrics should be provided for each element. For example:

Online Discussion Board Participation 30%Individual assignments/Case Studies 30%Mid-term Exam 20%Final Exam 20%



RUBRIC FOR EXPECTATIONS IN ONLINE DISCUSSION QUESTIONS

Discussion will be graded weekly; scores will be based on the following rubric:

Poor (0 points) Fair (2 points) Average (3 points) Excellent (4 points)

Timely contributions and responsiveness

No timely postings per question—no credit will be earned for late postings

1 posting per question

2 postings per question 3 or more postings per

question (the first made by Wednesday midnight, on at least two different days) which include the following:

1 student-initiated topic (approximately 150 words)

2 responses to peers (approximately 50 to 100 words)

Knowledge and incorporation of course content

Provides no evidence that readings were completed and/or understood

Postings have unclear relationship to course material

Provides evidence that lecture material was clearly understood

Provides evidence that lecture material was clearly understood; posts suggest critical thinking and/or synthesis of information

Responsiveness to peers

Responds Inappropriately to peers

Does not respond to other students with thoughtful ideas and opinions

Responds to other students with thoughtful ideas and opinions

Responds to other students with thoughtful ideas and opinions; poses additional questions or discussion

Use of online etiquette

2 infractions against discussion board etiquette

1 infraction against discussion board etiquette

Follows discussion board etiquette as posted in Expectations handout



RUBRIC FOR DISCUSSION SCORING

Your initial posting to discussion topics and your responses to others will be evaluated by the following criteria:

INITIAL POSTING

Discussion Board Questions: 20 Points per WeekIndividual postings are due Thursdays @ midnight; Responses to two posts are due Saturday @ midnight.

Criterion Grade

Posts on time. Major post 150-200 words. Demonstrates a strong grasp of the concepts with sufficient evidence to support opinions. Contributed new ideas to the discussion. Responds to at least 2 posts. Demonstrates high quality of writing.

18-20

Posts on time. Major post 100-150 words. Indicates an understanding of most of the more significant concepts and ability to support opinions with appropriate evidence. Occasional contributions of new ideas or opinions. Responds to at least 2 posts. Well-written responses with no grammar and punctuation errors.

16-17

Posts late and does not demonstrate much understanding of the concepts. Opinions are not supported by evidence and rarely differ from those of others in the discussion. Misses 1 post. Adequately written with few grammar and punctuation errors.

0-15

Posts late. Posting demonstrates minimal understanding of the concepts. Misses 1-2 posts. Inadequately or poorly written with grammar and punctuation errors.

0-7

No participation in the discussion 0

Individual Case Studies & Weekly Assignments



Criterion Grade: 45-50

Excellent

Grade: 40-44

Good

Grade: 35-39

Average

Grade: 0-34

Poor

Knowledge, thoroughness of subject matter

Highest effort, very complete

Almost everything on target

Some points not covered

Little to no effort made

Relevance, insight, recommendations

On target, excellent insight

Relevant with good insight

Some ideas missing but reasonably good

Little to no effort made

Writing, Grammar Well written with no errors

Well written Good writing Grammar errors, spelling errors

Timely submission On time On time On time Late

RUBRIC FOR PROJECT SCORING

ACADEMIC HONESTY

A high level of responsibility and academic honesty is expected from our students and it is imperative that a student demonstrates high ethical standards in his/her academic work. Academic dishonesty includes, but is not limited to, submission as one’s own work or material that is not one’s own. Plagiarism from the Web or from any other source is unacceptable and will be dealt with under the University’s policy on plagiarism. Students suspected of academic dishonesty are subject to disciplinary actions. Please refer to the La Salle Student Handbook.

COURSE POLICIES



I understand how pursuing a higher education while working full-time and/or raising a family can be challenging at times. I admire your tenacity and efforts. When things get difficult in this class (or in others) and as deadlines loom ahead, remember that you are working towards a goal that will benefit you and your family for a lifetime! Having said this, please understand that we must adhere to established guidelines of high academic standards and communication procedures. Some of these standards and procedures are outlined below. Please refer to the syllabus for additional course expectations.

LATE WORK POLICY

Late work is subject to receiving 0 points. Simply stated, the policy is that you do not want to submit late work as it is the discretion of the instructor to grade the materials. Frequent submission of late work will result in lower scores and potential lower grade for the course.

It is important to be familiar with this instructor's late work policy. Lesson assignments are due on Sundays, before midnight. Late assignments will not receive credit unless approved by the instructor because of extenuating circumstances.

An assignment is considered a week late even if it is turned after Sunday, midnight. This applies because all work for the week is due before Sunday, midnight. Therefore, turn in your work on time to avoid late penalties, to avoid stress, and to get the most from the learning resources.

No credit will be given for any late threaded discussion posts or late final assignments. The rationale underlying this policy is that since the threaded discussions are a central part of the class, student participation is necessary (and required) during the current week of each lesson. Consequently, students must post their reply to the threaded discussion question(s) and reply to at least two classmates' posts during the week of the relevant unit in order to be eligible for credit. As for any final assignments, external deadlines prevail so flexibility is not an option.

In the event that an assignment is turned in late, you are required to notify me by -mail that the work has been completed. At my earliest convenience, I will then consider the late work and update your grade, as appropriate.

COMMUNICATION

Please be aware when you e-mail me with a question or concern to allow 24 hours for a response. In most cases the reply will be much sooner. I believe that prompt and relevant feedback to your questions, concerns, and posts is of extreme importance.



Concerning e-mail, you must put your NAME on the e-mail and YOUR CLASS AND THE ASSIGNMENT OR ISSUE YOU ARE REFERRING TO IN THE SUBJECT LINE OR the reply may be delayed. Please comply with this request to ensure a prompt response from me.

Furthermore, feel free to post questions in discussion threads, but address them specifically to me so I know it's something you want me to look at as soon as possible. Another mode of communication is the main chat room in the course, which allows us to chat in "real-time" during a mutually-arranged appointment. Alternatively, my office hours will be clearly identified at our first class.

I am also available on a case-by-case basis to meet individually with you.

ETIQUETTE

Please understand that there is a certain type of etiquette that must be upheld in the class when posting in discussion areas and when turning in college work. To this end, refrain from slang, derogatory language, caps, and any potentially offensive forms of expression. Hence, when you approach your instructor or other students with questions or comments, you should always maintain a professional tone.

DISCUSSION BOARD TIPS

Most times you will be replying to the same topic each week. You will stay within the thread to keep the conversation threaded. This does not mean you cannot start your own topic within a topic. If so, start your own with a unique topic.

Be articulate as you can, and at the same time exercise brevity. If you want to post something with more than one point, break it up into two posts. This

will allow someone to reply to only one point. If you post a comment and it does not sound the way you expect it to, go back and

respond to your own post to clarify your point. Go ahead and address someone personally. This is great for creating a sense that you

are really “speaking” to that person. In fact, it helps all the readers follow the threads in the discussions easily.

Feel free to be funny. Everyone likes humor—especially if you are relating to a personal experience.

Paste Web links into your message to help prove a point or bring attention to a new way of thinking. Just a word of caution: don’t depend on Web links to prove your point, use



it as supporting information only. You should always be involved in the discussion drawing from your own knowledge base and your own experiences.

Be aware of your tone—irony doesn’t always work it could be completely misinterpreted. The professor and your classmates cannot see your facial expressions online, and your comment may be taken the wrong way.

Your posts should be full sentences. Do not use the new IM language derived from writing instant messages on the Web. Not everyone understands the IM language. Besides your discussion responses are to be thoughtful and critical observations about the subject matter.

Only use caps for emphasis; otherwise it may sound as if you are yelling. Be aware of spelling and grammar. Use the same standards that you would in the classroom. Criticize the idea, not the person. Be constructive in criticism and offer alternatives.

GRADES

Grades will be posted within one week after the scheduled due date. Grade book questions should not be asked before the one-week window.

ASSIGNMENT SUBMISSION

Please be certain to turn work into the appropriate area under the appropriate title.


Documents

spring 2016 - La Salle University Computer Science Servercsc-srv1.lasalle.edu/mccoey/syllabi/syllabi 2015... · Web viewPrior to that, he served in a variety of in-house fraud and