Schedule
Class 1 – Monday, September 23, 2019
Lab 01 – Tools Installation
Install Version 14 of ACL Analytics. If you have a Mac or Linux machine you will need to run Windows in a VM to use this software. If you are not using Windows as your primary operating system (e.g. Mac or Linux) you will need to install a virtual windows machine to run windows. There is no version of VMware Player for OS X. VMware sells a Mac version of their product called VMware Fusion. You may use it as trial version 30 days for free. There is a free version of VMWare Player for Linux.
Lecture 01 – Why People Commit Fraud
- The Seriousness of fraud
- The definition of fraud
- The different types of fraud
- Fraud against organizations
- Fraud on behalf of organizations
- Criminal and civil fraud law
- Fraud fighting careers
- Who commits fraud
- Why people commit fraud
- The fraud triangle
- The fraud scale
- How pressure contributes to fraud
- Why opportunity is necessary – Why people rationalize fraud
Lecture 01 – Reading
- Albrecht, Zimbelman Ch 2 – Why People Commit Fraud (2017).
CFE Employer Brochure. In: Austin, Texas, USA: Association of Certified Fraud Examiners. - (2018). REPORT TO THE NATIONS ON OCCUPATIONAL FRAUD AND ABUSE 2018 GLOBAL FRAUD STUDY. Retrieved from www.acfe.com/report-to-the-nations/2018/
Lecture 02 – Fighting Fraud
- Different fraud defense methods
- Importance of fraud prevention
- Create a culture of honesty
- Hire right to reduce risks
- Assess and mitigate fraud
- Detect fraud early
- Approaches to fraud investigation
Lecture 02 – Reading
- Options for legal action (US perspective) Albrecht, Zimbelman Ch 3 – Fighting Fraud
- Ramos, M. (2003). Auditors’ Responsibility for Fraud Detection. – SAS no. 99 introduces a new era in auditors’ requirements. Journal of Accountancy.
Class 2 – Tuesday September 24, 2019
Lab 01 – Installing ACL (Continued…)
Lab 02 – ACL Analytics Basics (CPE) ACL100
Lab 03 – ACL Analytics Foundation Program (CPE) ACL101
Lecture 02 – The Nature of Fraud
- Different fraud defense methods
- Importance of fraud prevention
- Create a culture of honesty
- Hire right to reduce risks
- Assess and mitigate fraud
- Detect fraud early
- Approaches to fraud investigation
Lecture 02 – Reading
- Options for legal action (US perspective) Albrecht, Zimbelman Ch 3 – Fighting Fraud
- Ramos, M. (2003). Auditors’ Responsibility for Fraud Detection. – SAS no. 99 introduces a new era in auditors’ requirements. Journal of Accountancy.
Lecture 03 – Why People Commit Fraud
- Know the types of people who commit fraud.
- Explain why people commit fraud.
- Describe the fraud triangle.
- Explain the fraud scale.
- Understand how pressure contributes to fraud.
- Understand why opportunity must be present for fraud to occur.
- Understand why people rationalize.
- Understand how people are recruited to participate in fraud schemes.
Lecture 03 – Reading
- Albrecht, Zimbelman Ch 2 – Why People Commit Fraud
- Auditors’ Responsibility for Fraud Detection.
Lab 04 – Filters, Computed Fields, & Functions in ACL Analytics (CPE) (ACL 102)
Lab 05 – Importing and Preparing Data in ACL Analytics (CPE) (ACL 103)
Lecture 04 – Fighting Fraud
- Become familiar with the different ways in which organizations fight fraud.
- Understand the importance of fraud prevention.
- Understand how to create a culture of honesty and high ethics.
- Understand why hiring the right kind of employees can greatly reduce the risk of fraud.
- Understand how to assess and mitigate the risk of fraud.
- Understand the importance of early fraud detection.
- Understand different approaches to fraud investigation.
- Be familiar with the different options for legal action that can be taken once fraud has occurred.
Lab 09 – Fraud Policy Development
Develop a Policy for your Company or Organization to Prohibit Activities that may contribute to Fraud. In this section of the course, as auditors you can be called on to review and potentially create or update company policies on fraud and corruption. Read Red Hat Software’s policy. Using this as a template or outline create a similar policy for BNAI.
Lab 09 – Reading
- Albrecht, Zimbelman – Appendix: Red Hat Code of Business Conduct and Ethics
Class 3 – Wednesday September 25, 2019
Lab 06 – Analyzing Data in ACL Analytics (CPE) ACL 104
Lab 07 – Remediating Issues and Reporting Results (CPE) ACL 105
Lecture 05 – Recognizing the Symptoms of Fraud
- Understand how symptoms help in the detection of fraud.
- Identify and understand accounting symptoms of fraud.
- Describe internal controls that help deter and detect fraud.
- Identify and understand analytical symptoms of fraud.
- Explain how lifestyle changes help detect fraud.
- Discuss how behavioral symptoms help detect fraud.
- Recognize the importance of tips and complaints as fraud symptoms.
Reading Lecture 05
- Albrecht, Zimbelman Ch 5 – Recognizing the Symptoms of Fraud
Lecture 05 – Reading
- Albrecht, Zimbelman Ch 5 – Preventing Fraud
- Hoffman, C. (2013). Detecting Accounting Anomalies Using Structured Information. In: Digital Financial Reporting (XBRLSITE.COM).
- Detecting Accounting Anomalies (Local Copy)
Lab 08 – Introduction to Scripting in ACL Analytics (CPE) ACL 106
Lecture 06 – Data Driven Fraud Detection
- Describe the importance of data-driven fraud detection, including the difference between accounting anomalies and fraud.
- Explain the steps in the data analysis process.
- Be familiar with common data analysis packages.
- Understand the principles of data access, including Open Database Connectivity (ODBC), text import, and data warehousing.
- Perform basic data analysis procedures for fraud detection.
- Read and analyze a Matasos matrix.
- Understand how fraud is detected by analyzing financial statements.
Lecture 06 – Reading
- Albrecht, Zimbelman Ch 6 – Data Driven Fraud Detection
Class 4, Thursday September 26, 2019
Lab 12 – Frauds of Note
In this lab we will investigate a publicly disclosed fraud. We will break into three teams. You will have two hours to develop your presentation and each team will have ten minutes to present. Please choose a company of your choice.
MIS-5208-Lab-03-Infamous-Frauds
Please use this sample solution as a template.
MIS-5208-Presentation-Sample-Solution
Each student should upload a copy of their team’s presentation to Canvas. Please be sure to put all team members’ names on the cover page of the presentation.
Lecture 07 – Investigating Theft Acts (Part 01)
Albrecht, Zimbelman Ch 7 – Investigating Thefts Acts
- Understand the various ways frauds are investigated and when to use each investigation method.
- Discuss theft investigation methods and how they are used to investigate suspected fraud.
- Understand how to coordinate an investigation, using a vulnerability chart.
- Describe the nature of surveillance and covert operations.
- Understand the effectiveness of invigilation to investigate fraud.
- Explain how to obtain physical evidence and how it can be used in a fraud investigation.
- Understand how to seize and analyze electronic information from cell phones, hard drives, e-mail, social networking sites, and other sources.
Lecture 07 – Investigating Theft Acts (Part 02)
- Investigation process
- Evidence collection
- Evidence processing
- Evidence Confidentiality
- Law enforcement role
- Private investigation role
Lecture 07 – Reading
- Albrecht, Zimbelman Ch 7 – Investigating Theft Acts
Lecture 08 – Investigating Concealment
- Describe concealment investigation methods and how they relate to fraud.
- Understand the value of documents and electronic records in a fraud investigation.
- List the different methods of obtaining documentary evidence.
- Understand how to perform discovery sampling to obtain documentary evidence.
- Explain how to obtain hard-to-get documentary evidence.
Lecture 08 – Reading
- Albrecht, Zimbelman Ch 8 – Investigating Concealment
Class 5, Friday September 27, 2019
LAB 06 – Insurance Fraud – Chapter 8 – Case Studies 1 and 2
Go to Canvas
Lecture 09 – Conversion Investigation Methods
- Understand the interviewing process.
- Plan and conduct an interview.
- Understand the nature of admission-seeking interviews.
- Describe the different deceptions and lies used by perpetrators.
- Describe the different types of honesty testing.
- Prepare a fraud report.
Lecture 09 – Reading
- Albrecht, Zimbelman Ch 9 – Conversion Investigation methods
Lecture 10 – Credit Card Fraud
- Credit Card Structure
- Mag Stripe Formats
- Service Codes
Lecture 11 – Data Acquisition – Digital Evidence
- List digital evidence storage formats
- Explain ways to determine the best acquisition method
- Describe contingency planning for data acquisitions
- Explain how to use acquisition tools
- Explain how to validate data acquisitions
- Describe RAID acquisition methods
- Explain how to use remote network acquisition tools
- List other forensic tools available for data acquisitions