_______ North Seattle Community College _______________________________________
Business, Engineering and Information Technologies Division
Course Establishment Form
Outline
Effective Date: Fall 2011
Division:
BEIT
Program/Dept:
Accounting
Course Number:
ACCT 272
Credits: 5
Variable: No
Course Title:
Fraud Examination
Inst. Intent:
21 Vocational Preparatory
Fee: Yes X
No
CIP: 52.0302
Type Distance Learning
Degree/Certificate Requirement:
Yes X
Name of Degree/Certificate:
Fraud Accounting Certificate
No:
Distribution Requirement for AA/AS:
No
Transfer Status to 4-year institution:
Yes
No: X
If yes, please describe:
Course length:
One quarter
55
Course Contact Hours:
Lecture: 55
Prerequisite:
Class Size: 25
Lab:
Yes: X
Clinical:
Other:
System:
No:
If yes, please describe:
ACCT 200, prior accounting course, or instructor permission
Required Placement Tests:
Yes
No X
If yes, please describe:
Comments:
Course Description:
This course is an introduction to the field of fraud examination. It provides an overview of the general
fraud examination methodology and fraud theory approach, and outlines the basics surrounding fraud
examination – including criminology related to fraud. Students will learn how and why accounting fraud
is committed, how fraudulent conduct can be deterred, and how allegations of fraud should be
investigated and resolved. Students will work through cases in order to develop investigative strategies
and prove how fraud was committed. After completing the overview students can select a special interest
track for further study, such as health care fraud.
Course Goals:
Completion of this section is OPTIONAL. Please use this section to include those general
UNMEASURABLE goals which address cognation and feelings; for example, appreciate, understand.
Refer to sample.
NSCC General Education Learning Outcomes and/or Related Instructional Outcomes (for
technical courses) Met by Course:
Intellectual and Practical Skills, including:
 Quantitative reasoning

Critical thinking and problem solving
Course Outcomes/Learning Objectives:
Students should be able to:
 explain how and why occupational fraud is committed
 recognize red flags associated with fraudulent activity
 identify how fraudulent conduct may be deterred
 explain methods used by fraudsters to conceal each type of fraud covered in course
 demonstrate how allegations of fraud should be investigated and resolved
 apply course concepts to current real world issues
Topical Outline and/or Major Divisions:
I Fraud Examination Methodology
A. Predication
B. Fraud theory approach - analyze data in order to create, test, refine and amend the hypothesis
C. Define occupational fraud and abuse
D. Research in occupational fraud and abuse – including behavioral criminology
II Asset Misappropriation – Cash Schemes – Embezzlement of Funds
A. Cash Receipt Schemes
1. Larceny Schemes: theft of recorded cash at point of sale, from accounts receivable or from the
bank deposit process.
2. Skimming Schemes: theft of unrecorded cash from sales and accounts receivable.
B. Fraudulent Disbursement Schemes
1. Billing Schemes: shell company, non-accomplice vendor, and personal purchases through false
invoice schemes.
2. Payroll Schemes: ghost employees, commission schemes, falsified wages.
3. Expense Reimbursement Schemes: mischaracterized expenses, overstated expenses, fictitious
expenses, and multiple reimbursements.
4. Check Tampering: forged maker, forged endorsement, altered payee, concealed checks,
authorized maker.
5. Register Disbursements: false voids and false refunds.
III Asset Misappropriation – Non-cash Schemes
A. Inventory Misuse
B. Inventory Larceny: asset requisitions and transfers, false sales and shipping, purchasing and receiving,
unconcealed larceny.
IV Corruption
A. Conflicts of Interest: purchases and sales schemes
B. Bribery: invoice kickbacks, bid rigging.
C. Illegal Gratuities
D. Economic Extortion
V Optional fraud tracks
A. Health Care Fraud: fraud by the insurance company, employee claims fraud, agent fraud, provider fraud,
Medicaid fraud, etc.
B. Insurance Fraud: agent/broker fraud, vehicle insurance schemes, property schemes, liability schemes,
workers compensation fraud, etc.
C. Securities Fraud – commodity futures, exchange-traded options, and OTC options; securities fraud
schemes; securities fraud and the internet.
Course Requirements (Expectations of Students)
Students will be expected to demonstrate the ability to perform specific competencies listed under
“Course Outcomes/Learning Objectives.”
Methods of Assessment/Evaluation:
Final grades are assigned according to published grading standards for the course.
Completion of required homework assignments and case studies
Quizzes and examinations
Collaborative interaction with fellow students
Required Text(s) and/or Materials:
As determined by instructor.
Principles of Fraud Examination
Supplemental Text(s) and/or Materials:
As required by instructor.
Outline Developed by:
Outline Revised by:
Course Establishment Form 2001
le 10/11/01
Lauren Psomostithis
Date:
Date:
12/1/10