CRJ557: Fraud Investigation
Credit Hours:
3
Contact Hours:
This is a 3-credit course, offered in accelerated format. This means that 16 weeks of
material is covered in 8 weeks. The exact number of hours per week that you can
expect to spend on each course will vary based upon the weekly coursework, as
well as your study style and preferences. You should plan to spend 10-25 hours per
week in each course reading material, interacting on the discussion boards, writing
papers, completing projects, and doing research.
Faculty Information
Name:
Phone:
CSU-GC Email:
Virtual Office Hours:
Course Description and Outcomes
In this course we will examine a variety of financial frauds that are commonly investigated. Frauds, including
financial misstatements and embezzlements, will be introduced. Our topic coverage will include investigative
techniques, evidence gathering and how to testify professionally in legal proceedings. In addition, document
coverage, such as search warrants, seizure warrants and civil injunctions, will be interlaced throughout the term.
The material coverage will be reinforced and enhanced using real-life cases and discussions.
Course Learning Outcomes:
1.
2.
3.
4.
5.
6.
7.
8.
Understand the process and appreciate the problems of fraud investigations.
Evaluate the elements of proof peculiar (i.e., terrorism financing) to white collar crimes.
Understand and apply accounting and auditing theories for investigators.
Identify issues that arise when obtaining public information, a subpoena, and search warrants.
Apply techniques for effective financial interviewing and interrogation.
Describe practices of evidence and documentation in court proceedings.
Evaluate illicit Identify transactions that indicate fraudulent activity or the heightened risk of fraud
Create an investigative report.
Participation & Attendance
Prompt and consistent attendance in your online courses is essential for your success at CSU-Global Campus.
Failure to verify your attendance within the first 7 days of this course may result in your withdrawal. If for some
reason you would like to drop a course, please contact your advisor.
Online classes have deadlines, assignments, and participation requirements just like on-campus classes. Budget
your time carefully and keep an open line of communication with your instructor. If you are having technical
problems, problems with your assignments, or other problems that are impeding your progress, let your
instructor know as soon as possible.
Course Materials
Required:
Kranacher, M. J., Riley, R., & Wells, J. T. (2011). Forensic Accounting and Fraud Examination. Hoboken, NJ: John
Wiley & Sons. ISBN-13: 9780470437742
NOTE: All non-textbook required readings and materials necessary to complete assignments, discussions, and/or
supplemental or required exercises will be provided within the course itself. Please read through each course
module carefully.
Course Schedule
Due Dates
The Academic Week at CSU-Global begins on Monday and ends the following Sunday.
 Discussion Boards: The original post must be completed by Thursday at 11:59p.m. MT and Peer
Responses posted by Sunday 11:59p.m. MT. Late posts may not be awarded points.
 Mastery Exercises: Students may access and retake mastery exercises through the last day of class until
they achieve the scores they desire.
 Critical Thinking Activities: Assignments are due Sunday at 11:59p.m. MT.
Week #
1
2
3
4
Readings

Chapters 1 & 4 Forensic Accounting and Fraud
Examination

Chapters 6, 8 & 9 in Forensic Accounting and Fraud
Examination

Chapter 10 in Forensic Accounting and Fraud
Examination
Chapter 11 in Forensic Accounting and Fraud
Examination

Assignments





Discussion (25 points)
Critical Thinking (100 points)
Discussion (25 points)
Critical Thinking (125 points)
Discussion (25 points)


Discussion (25 points)
Critical Thinking (100 points)

5
Chapter 12 in Forensic Accounting and Fraud
Examination
Chapter 13 in Forensic Accounting and Fraud
Examination

Discussion (25 points)


Discussion (25 points)
Critical Thinking (125 points)

Chapters 14 & 15 in Forensic Accounting and Fraud
Examination

Discussion (25 points)

Chapter 16 in Forensic Accounting and Fraud
Examination


Discussion (25 points)
Portfolio (350 points)

6
7
8
Assignment Details
This course includes the following assignments/projects:
Module 1
CRITICAL THINKING ASSIGNMENT: Fraud Investigations and Financial Crimes (100 Points)
In a 2-3 page paper, describe the major and legal elements of fraud theory. Include in your paper responses to the
following:


What are the primary roles of the forensics accountant and certified fraud examiner during an investigation
assignment?
Discuss the asset forfeiture and seizure process during an investigation. What system tools (e.g., ratios, ACL,
etc.) are applicable to this type of investigation?
Your responses to the questions and statements must be supported with 2-3 academic sources in addition to the
textbook, such as case studies and empirical studies. Use the CSU-Global Library to find these outside academic
sources.
Be sure that your paper is formatted according to the CSU-Global writing standards and APA requirements and
includes a title and reference page.
Module 2
CRITICAL THINKING ASSIGNMENT: Legal and Effective Interviewing Techniques (125 points)
Your investigation begins with the arrest of a corporate officer involved in an embezzlement scheme at his
employer. The amount of cash missing is approximately $100,000. As a sworn officer with jurisdiction over the
case, you have been entrusted with investigating this matter. The defendant has been less than cooperative in this
matter.
In a 3-4 page paper, please complete the following:



Outline the steps you would use to obtain evidence.
Identify documents and records that would be helpful in prosecuting the case.
Describe issues that deal with evidence collection, storage and presentation at trial.
If possible, provide a graphic that describes the process of evidence collection. This is not required but would be a
valuable addition in outlining your process.
Your analysis and statements must be supported with 2-3 scholarly sources in addition to the textbook. The CSUGlobal Library is a good place to find these resources. Be sure your paper is formatted per CSU-Global
specifications for APA Style and double-spaced with title and reference pages. See the CSU-Global Library for
sample papers found under the “APA Guide & Resources” link.
Module 4
CRITICAL THINKING: Case Study: Taking From The Poor To Give To The Rich (100 points)
Review the Cash Receipt Schemes and Other Asset Misappropriations case study from the first edition of the
course textbook (linked for you on the Week 4 Assignments page).
Identify the internal controls that were compromised. Then, respond to these questions:
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

Why did the auditor(s) not detect this crime?
Who is responsible for monitoring 501(C) 3 entities?
How should the fundraising entity fund collections have been managed?
What elements of the fraud triangle were violated?
Your analysis and statements must be supported with 2-3 sources in addition to the textbook. Use the CSU-Global
Library to find outside academic sources.
Your paper should be 2-3 pages in length and formatted per CSU-Global specifications for APA Style. Be sure the
paper is double-spaced and includes title and reference pages.
Module 6
CRITICAL THINKING: Corruption and Scam Artists - Madoff (125 points)
Review the following report of the investigation by the U.S. Security and Exchange Commission’s Office of
Inspector General as to how the SEC missed Bernard Madoff’s Ponzi Scheme (Executive Summary).
http://www.sec.gov/spotlight/secpostmadoffreforms/oig-509-exec-summary.pdf
After reading and reflecting on the report, complete the following:
 Explain how the circumvention of internal controls was used to cover up the fraud to investigators.
 Identify which controls were compromised.
 Discuss the audit test steps to uncover this type of fraud.
 Provide recommendations for how avoid this type of fraud and a conclusion that summarizes your point of
view.
Your analysis and statements must be supported with 2-3 sources in addition to the textbook. Use the CSU-Global
Library to find these sources. Your paper should be 3-4 pages in length and formatted per CSU-Global
specifications for APA Style. Be sure the paper is double-spaced and includes title and reference pages.
Module 8
PORTFOLIO PROJECT: (350 Points)
You have been called in as a governmental investigator to examine why the cash shortages have been occurring.
You also need to identify who is committing the embezzlement and to gain evidence in order to obtain a conviction
against the individual(s) involved.
Read the Portfolio Project Fact Pattern Sheet (linked on the Week 8 Assignments page). Prepare a memorandum
that addresses the following items in detail:
1.
2.
3.
4.
5.
6.
7.
8.
9.
What is the type of fraud being investigated?
Who are the possible perpetrator(s) of the cash shortages?
Based on the facts presented, identify possible deficiencies within the internal control system of ABC. If this
was a publicly held company, what are some of the possible violations of the Sarbanes-Oxley Act? Please list
all sections of the Act that potentially are violated and evidence that supports your position. How can the
deficiencies of the internal control system be mitigated?
Identify any conflicts of interests within this case and analyze possible outcomes that may occur.
What are some of the motivating factors and criminal opportunities that would cause this crime to occur?
What patterns of behavior point towards the individual(s) being the perpetrator of the cash shortages?
For investigative purposes, what evidence needs to be procured in order to substantiate a conviction for the
individual(s) involved? Please list documents needed, what items will require a subpoena or search warrant,
etc., assuming that you are a public investigator from a state agency authorized to conduct such
investigations.
After obtaining and reviewing the evidence, you feel you are ready to interview the perpetrator(s). What is
your recommended approach to such an interview? What series of questions (maximum of ten questions)
would you most likely use?
Please write up your findings to your investigation, stating:
a. The name of the accused.
b. Evidence that links the person(s) to the crime.
c. Charges recommended to the prosecutor.
You should have a section in your report that addresses each item separately and in chronological order.
Your paper should be approximately 8-10 pages in length, be supported by at least 5 outside sources, and conform
to CSU-Global guidelines for APA style. Your sources may be from this course or from the CSU-Global Library.
Course Policies
Late Work
Students are permitted a 7 day grace period during which they may submit a Critical Thinking assignment after
the original due date without penalty. Papers submitted between 8 and 14 days after the original due date will
be accepted with a potential 10 percent reduction in grade for late submission. Papers submitted 15 or more
days beyond the original due date may not be accepted unless prior arrangements have been made with the
instructor. No Portfolios will be accepted late and no assignments will be accepted after the last day of class
unless a student has requested an incomplete grade in accordance with the Incomplete Policy.
Course Grading
20% Discussion Participation
45% Critical Thinking Activities
35% Final Portfolio Paper
Grading Scale and Policies
A
95.0 – 100
A-
90.0 – 94.9
B+
86.7 – 89.9
B
83.3 – 86.6
B-
80.0 – 83.2
C+
75.0 – 79.9
C
70.0 – 74.9
D
60.0 – 69.9
F
59.9 or below
FN*
Failure for Nonparticipation
I**
Incomplete
FN* Students who have completed less than 60% of the graded assignments will be issued a grade of FN. Grades of FN may impact
financial aid or military benefits.
I** Students must request an Incomplete through their course instructor. The faculty member will provide the student with the Request
for Incomplete Grade form, which must be signed by the student and approved by the faculty member prior to the faculty member
submitting to the Office of the Registrar. Incompletes cannot include unsubmitted assignments from the first six (6) weeks of the class as
defined by the late policy and may only be awarded to students that have completed 60% of the graded coursework with a passing
grade. Incomplete forms must be on file with the Office of the Registrar no later than Thursday of the final week of class.
Academic Integrity
Students must assume responsibility for maintaining honesty in all work submitted for credit and in any other
work designated by the instructor of the course. Academic dishonesty includes cheating, fabrication, facilitating
academic dishonesty, plagiarism, reusing your own work, re-purposing your own work, unauthorized possession
of academic materials, unauthorized collaboration. The Library provides information on how students can avoid
plagiarism by understanding what it is and how to use Library and internet resources.
Citing Sources with APA Style
All students are expected to follow the CSU-Global Guide to Writing and APA Requirements when citing in APA
(based on the APA Style Manual, 6th edition). For details on CSU-Global APA style, please review the APA
resources within the CSU-Global Library under the “APA Guide & Resources” link. A link to this document should
also be provided within most assignment descriptions on your course’s Assignments page.
Netiquette
Respect the diversity of options among the instructor and classmates and engage with them in a courteous,
respectful and professional inner. All posts and classroom communication must be conducted in a professional
and respectful manner in accordance with the student code of conduct. Think before you push the Send button.
Did you say just what you meant? How will the person on the other end read the words?
Maintain an environment free of harassment, stalking, threats, abuse, insults or humiliation toward the
instructor and classmates. This includes, but is not limited to demeaning written or oral comments of an ethnic,
religious, age, disability, sexist (or sexual orientation), or racist nature; and the unwanted sexual advances or
intimidations by email, or on discussion boards and other postings within or connected to the online classroom.
If you have concerns about something that has been said, please let your instructor know.
Institutional Policies
Refer to the Academic Catalog for comprehensive documentation of CSU-Global institutional policies.