HON 322H—Spring 2007
What Investors and Managers Need to Know About Fraud
Tuesday, 4:10-5:00 P.M, 0115 Gerdin
Professor Bill Dilla
Office: 3342 Gerdin
Office Phone: 4-1685 (voice mail answers 24 hours. per day!)
e-mail: wdilla@iastate.edu
Class home page: http://www.bus.iastate.edu/wdilla/Hon322/default.asp
Office Hours: Mon and Wed 1:30-3:00; other times by appointment
Texts-- Fraud Examination, 2nd Edition by W. Steve Albrecht et al.(available in ISU Union
bookstore), other readings to be determined
The seminar will cover the following:
1.
2.
3.
4.
5.
Types of fraud most common in business
Conditions under which fraud occurs
Methods for detecting and investigating fraud
Methods for preventing fraud
Anything else the class finds interesting
Seminar expectations:
For a passing grade, you need to do all of the following:
Attendance: Ideally, you should attend every session, but up to two absences will be allowed.
This includes all possible “excuses,” i.e., illness, personal emergency, deadline in another course,
etc. Plan your absences (if any) wisely, as there exceptions to the limit will only be allowed in
extraordinary circumstances.
Participation: Everyone should participate actively in class discussions. This means your
contributions to the discussion should indicate that you made a serious attempt to read and
understand the assignments. You also will be asked to make short, informal presentations to the
class.
Class Facilitation: The class will be divided up into six groups. Each group will prepare and
facilitate a class session, with the help of Prof. Dilla (see details below).
Paper: Write a 5 to 7 page paper on a topic related to fraud. This paper should be “honors
quality,” i.e., a score of 80 or better on a 100 point scale. Students who do not achieve this score
on their first draft will be asked to re-write their papers in order to receive credit for the seminar.
Key Dates
Feb. 27—topics for facilitated classes due
Two weeks before facilitated class: Preliminary outline to Prof. Dilla
One week before facilitated class: Reading and assignment list given out to class
March 20—turn in paper abstract (approx. 200 words)
April 17—Papers are due
Seminar Schedule
First Nine Weeks: Instructor-Facilitated Sessions
Date
Topic
Assignment
1/9
What is Fraud?
Read: Albrecht, Chapter 1
1/16
The Fraud Triangle
Read: Albrecht, Chapter 2
Prepare for Discussion: Chapter 2: Cases 4, 11;
Extensive Case 2
1/23
Fraud Triangle MiniPresentations
1/30
Mini-Presentations
(continued)
Fraud Prevention
2/6
Read: Albrecht, pp. 65-71, Chapter 4
Prepare for Discussion: “Lapping it Up”
(handout)
Fraud Prevention,
continued.
Prepare for Discussion: Chapter 4 Debate 2
Fraud Against
Organizations
Albrecht Chapter 15
2/13
Fraud Investigation
Read: Albrecht, pp. 72-78, Chapter 5, pp. 157169, 175, 176; Sherlock Holmes, CPA (handouts)
2/20
Fraud Investigation
(continued)
Read: Albrecht, Chapters 7, 8, 9
2/27
Financial Reporting
Fraud
Read: Albrecht, Chapter 11, Phar-Mor CPA
Journal Article
3/6
Financial Reporting
Fraud (continued)
Last Six Weeks: Student-Facilitated Sessions
Topic Ideas (list is not all-inclusive)
Whistle-blowing
Fraud signals investors should look for
Charity fraud (e.g., PTL, Arizona Baptist
Foundation)
Fraud at a specific company (e.g., Enron,
WorldCom, etc.)
Fraud investigation and prosecution
Fraud and e-commerce
Fraud interviewing
Other computer fraud issues
Stock options backdating
Identity theft
What facilitating a session may involve
Choose readings (1 or 2 per class); make sure
class members get the readings
Prepare discussion questions based on the
readings
Prepare a brief presentation on the topic (no
more than 20 minutes out of a 60 minute
session!)
Develop other classroom activities (i.e., roleplaying games)