Course Syllabus

Course Objectives                                                                                      

This course explores the forensic accountant's role in today's economy. Topics covered include fraud detection and fraud investigation techniques, valuation of closely held businesses, lost profits analyses, and various types of litigation support services. Fundamental legal concepts governing expert witness testimony are also examined, and students are required to quantify economic damages in cases. By the end of the course students are able to understand both the pervasiveness and the causes of fraud and white-collar crime in our society, examine the types of fraud and fraud schemes that affect business enterprises, explore methods of fraud detection and prevention, and increase their ability to recognize potential fraudulent situations.

Though there are no prerequisites for this course, it is highly beneficial if you have taken courses on financial accounting and basic financial statement analysis. It would be easier for you to follow along in class.

Required Textbook: Forensic Accounting and Fraud Examination by William Hopwood, Jay Leiner and George Young, McGraw-Hill Companies, Inc. (2011) - ISBN 0078136660

We will cover the chapters mentioned hereunder during the semester. I will cover the materials in the chapters in no particular order. More important than reading the book would be to follow along in the classes and read the supplemental materials presented. I will post additional materials on Blackboard during the semester.

Chapter 1 – Introduction to Forensic Accounting and Fraud Examination

Chapter 2 – The Forensic Accounting Legal Environment

Chapter 7 – The Fraud Investigation and Engagement Processes

Chapter 8 – The Evidence Collection Process

Chapter 9 – Fraud Examination Evidence I: Physical, Documentary and Observational Evidence

Chapter 10 – Fraud Examination Evidence II: Interview and Interrogation Methods

Chapter 12 – The Fraud Report, Litigation, and the Recovery Process

Chapter 14 – Financial Statement Fraud

Chapter 19 – Business Valuation

Optional Books

• Forensic Accounting for Dummies, Frimette Kass-Shraibman and Vijay Sampath, Wiley Publishers
• A Guide to Forensic Accounting Investigation, Thomas Golden, Steven Skalak and Mona Clayton, Wiley Publishers
• Forensic Accounting and Fraud Examination, Mary-Jo Kranacher, Richard Riley and Joseph Wells, Wiley Publishers
• Financial Shenanigans – How to Detect Accounting Gimmicks & Fraud in Financial Reports, Howard Schilit, McGraw Hill Publishers
• Litigation Services Handbook – The Role of the Financial Expert, Roman Weil, Michael Wagner and Peter Frank, Wiley Publishers

Supplementary cases, notes, solutions to in-class exercises and other handouts will be posted on Blackboard.

Guest Speakers

I will also bring in guest speakers from time to time; the topics covered by these speakers would include investigative techniques, government enforcement, forensic technology and damages analysis. As it is difficult to predict whether and when these speakers would be available, I have not included the topics in the class schedule.

Grading

Letter grades will be assigned for the course based on the following scale:

96-100%                                             A

91-95                                                   A-

86-90                                                   B+

80-85                                                   B

75-79                                                   B-

70-74                                                   C+

60-69                                                   C

59 or less                                             F

For additional information, please refer to the Harvard Extension School grading policies (http://www.extension.harvard.edu/exams-grades-policies/grades).

Grading will be weighted as follows:

Class Participation                             10%

Group Projects (2)                             30%

Term Papers (2)                                20%

Midterm Exam                                   20%

Final Exam                                        20%

Class Participation

Attendance in class is mandatory. The course and students also benefit from active participation. Students are expected to contribute throughout the course.

Group Project - cases

The class will be divided into groups of two or more students and cases will be assigned (please see list of cases under “Tentative class schedule”). There will be two cases assigned to each team. For the first case, the team members are jointly required to do two tasks: prepare and present (PowerPoint/Prezi) on the date mentioned and a report (three pages, single-spaced, Times Roman 12 font); the report will be due at the time of final exam. For the second case (which will be the same case for all teams), you are required to answer the questions that will be provided with the case. The answers are due prior to the date assigned to discuss the case.

Note: there are a few cases mentioned in the class schedule that we will discuss in class. These cases will not be graded.

Term Papers

You will be individually required to prepare two papers, each two pages in length (single-spaced, Times Roman 12 font) about other types of misconduct based on recent cases. Both papers are due at the time of the final exam. (NOTE: UNDERGRADUATE STUDENTS WILL BE REQUIRED TO DO ONLY ONE TERM PAPER).

You have to discuss what steps/measures you would take as a forensic accountant to investigate the cases. I will provide you more details during the first week of class. Suggested topics are as follows:

• Foreign Corrupt Practices Act (FCPA) investigations
• Anti-money laundering
• Insider trading

Exams

There will be two exams – a midterm and a final exam. There will be three types of questions: multiple choice, true/false and short answer. Arrangements will be made with the School to have the exam proctored. Only calculators are allowed, not PDAs, cellphones, etc. The final exam will be held during finals week. The exams will be closed book; it will be in your best interests to study and work through the materials prior to the exams. In case you are not able to take the exams on the scheduled dates, you will need to the Extension School office’s approval to take a late exam.

Optional Paper (5%)

For extra credit purposes, you can write a paper analyzing a company’s financial statement fraud that was not covered in class. The paper should not exceed two pages (single-spaced and Times Roman 12 font) in length and is due at the time of the final exam. Examples:

• Sunbeam Corporation
• Computer Associates
• HealthSouth

Tentative Class Schedule

Based on my experience, I would suggest that spending six hours every week should allow you to do well in this course. The six hours include the two hours of class time and doing the assigned cases.

In addition to asking questions about the materials covered in class, I encourage you to reach out to me with other academic issues such as writing recommendations or advice regarding career options and/or graduate work. I wish you all the best and look forward to a productive and fun semester!

   Vijay Sampath