Graduate Curriculum Committee Course Proposal Form

1 Graduate Curriculum Committee

Course Proposal Form for

Courses Numbered 5000 and Higher

Note: Before completing this form, please carefully read the accompanying instructions.

1. Course Prefix and Number: 2. Date:

3. Requested Action (check only one box):

X / New Course
Revision of Active Course
Revision & Unbanking of a Banked Course
Renumbering of an Existing Course from
from / # / to / #

4. Justification (assessment or accreditation based) for new course or course revision or course renumbering:

In light of recent accounting scandals (e.g., Enron, WorldCom, etc.), executives are policing their finances like never before. New accounting rules and the Sarbanes-Oxley corporate-reform law also are forcing companies to hunt more aggressively for fraud. The demand for people knowledgeable about fraud and how to prevent it is growing rapidly. Membership in the Association of Certified Fraud Examiners has grown from 5,500 members in 1992 to over 35,000 in 2004. However, relatively few business and accounting schools offer courses in fraud detection, and most auditors lack formal training in investigative skills. This class helps fill a void in the understanding of fraud and its ramifications on organizations, and helps expand the breadth of business coverage available to ECU’s graduate students in the College of Business. At the conclusion of this course, successful students will be able to define fraud and differentiate it from other crimes. They will be able to explain why fraud is committed and be able to identify characteristics of a fraud perpetrator, in addition to understanding the responsibilities of various individuals within an organization in the prevention and detection of fraud. Students will acquire skills necessary to evaluate fraud cases for signs of fraud risk, describe various types of fraudulent activity, and illustrate basic strategies and methods for preventing and detecting fraud. Students will demonstrate familiarity with and understanding of selected cases related to business fraud, understand the ramifications to capital markets as a result of fraudulent activities, and be able to describe the legal actions which may be taken against fraud perpetrators. Students will also understand the relationship of various governmental agencies in their efforts to mitigate fraudulent activities.
The fraud examination class will also prepare business professionals to objectively identify and manage the risk of fraud and understand how it affects business decisions. In addition, generally accepted auditing standards, specifically those contained in SAS 99, require an understanding of fraud detection procedures. These fraud detection procedures are required elements of professional examinations for the following certifications: the Certified Public Accountant, the Certified Internal Auditor, and the Certified Fraud Examiner.

5. Course description exactly as it should appear in the next catalog:

6301. Fraud Examination (3) May not count toward the BSA or MSA. P: ACCT 6241 or consent of assistant dean for graduate programs. Basic understanding of fraud prevention, detection concepts, and examination techniques.

6. If this is a course revision, briefly describe the requested change:

143

7. Graduate Catalog Page Number from current Graduate catalog:

8. Course Credit:

Lecture Hours / Weekly / OR / Per Term / Credit Hours / 3 / s.h.
Lab / Weekly / OR / Per Term / Credit Hours / s.h.
Studio / Weekly / OR / Per Term / Credit Hours / s.h.
Practicum / Weekly / OR / Per Term / Credit Hours / s.h.
Internship / Weekly / OR / Per Term / Credit Hours / s.h.
Other (e.g., independent study) Please explain.
Total Credit Hours / 3 / s.h.
20

9. Anticipated annual student enrollment:

10. Affected Degrees or Academic Programs:

Degree(s)/Course(s) / Current
Catalog Page / Changes in Degree Hours
None*

*an electronic search of the 2005-2006 Graduate Catalog PDF file was made for the term “fraud.” No degrees or academic programs were found to be affected.

11. Overlapping or Duplication with Affected Units or Programs:

x / Not Applicable
Notification & response from affected units is attached

12. Approval by the Council for Teacher Education (required for courses affecting teacher education programs):

x / Not Applicable
Applicable and CTE has given their approval.

13.  Statements of Support:

a. Staff

x / Current staff is adequate
Additional Staff is needed (describe needs in the box below):

b. Facilities

x / Current facilities are adequate
Additional Facilities are needed (describe needs in the box below):

c. Library

x / Initial library resources are adequate
Initial resources are needed (in the box below, give a brief explanation and an estimate for the cost of acquisition of required initial resources):

d. Computer resources

x / Unit computer resources are adequate
Additional unit computer resources are needed (in the box below, give a brief explanation and an estimate for the cost of acquisition):
ITCS Resources are not needed
The following ITCS resources are needed (put a check beside each need):
Mainframe computer system
Statistical services
Network connections
Computer lab for students
Approval from the Director of ITCS attached

14.  Course information: see Instructions for Completing the Graduate Curriculum Committee Course Proposal Form for more detail

a.  TEXTBOOK(S): author(s), name, publication date, publisher, and city/state/country

b.  Course objectives student –centered behavioral objectives for the course –

c.  A course content outline

d.  A list of course assignments and weighting of each assignment and the grading/evaluation system for determining a grade.

a.  Text: Albrecht, Albrecht, and Albrecht. Fraud Examination, 2e, South-Western, 2006.

b.  Course Objectives: This class illustrates the magnitude of fraud losses in business, examines many common frauds, and discusses internal controls designed to prevent and/or detect fraud. Fraud examination procedures will be introduced and cases will be studied to illustrate the concepts and techniques discussed. The primary objectives of this course are to give the student a basic understanding of fraud prevention and detection concepts and to introduce the student to fraud examination techniques. At the conclusion of this course, a successful student will be able to:

● define fraud and differentiate it from other crimes

● explain why fraud is committed and identify the characteristics of a fraud perpetrator

● delineate the responsibilities of various individuals within an organization in the prevention and detection of fraud

● evaluate business scenarios for signs of fraud risk

● describe various types of fraudulent activity

● develop and apply basic strategies and methods for preventing and detecting fraud

● apply fraud detection procedures in developing solutions to selected cases related to business fraud

● explain the ramifications to capital markets resulting from fraudulent activities

● describe the legal actions that may be taken against fraud perpetrators

● explain the relationship of various governmental agencies in their efforts to mitigate fraudulent activities.

c.  Course Content Outline:

1.  The Nature of Fraud

2.  Who Commits Fraud and Why

3.  Preventing Fraud

4.  Recognizing the Symptoms of Fraud

5.  Proactive Approaches to Detecting Fraud

6.  Investigating Theft

7.  Investigating Concealment

8.  Conversion Investigation Methods

9.  Inquiry Methods and Fraud Reports

10.  Financial Statement Fraud

11.  Revenue and Inventory Frauds

12.  Liability, Asset, and Inadequate Disclosure Frauds

13.  Fraud in E-Commerce

14.  Legal Follow-Up

Course Assignments, Weights, Grading/Evaluation System

Students’ assessment will consist of the following components: mid-term exam, fraud project, final exam, and cases/assignments.

Student groups will complete a fraud project in an organization (outside the classroom) of its choice. The purpose of this project is to: (1) provide students with "hands-on" experience in fraud detection, investigation, and/or prevention, and (2) to provide a service to a local business.

Successful fraud projects will include the following:

1.  A detailed description of each of the three elements of the fraud triangle and why they indicate a high fraud risk situation.

2.  "Red Flags" which indicate that a fraud may be or may have been perpetrated and indicate the relevant criminal statutes which are being or have been violated.

3.  Memo format summaries of people interviewed in connection with the investigation.

4.  A summary of any searches involving public records, the Internet, etc.

5.  A description of the evidence collected which supports the allegation and the investigative methods used during the investigation.

6.  Lessons learned from the investigation including how the fraud could have been prevented and changes the victimized business made, or is intending to make, as a result of the investigation.

Students are assigned cases/assignments from the text/outside sources.

Grading:

Mid-term 20%

Fraud Project 20%

Final Exam 30%

Cases/Assignments 30%

Total 100%

Grading Scale

A 90 – 100

B 80 – 89

C 70 – 79

F Below 70

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