SUFFOLK COUNTY COMMUNITY COLLEGE
LETTER-OF-INTENT TO CAMPUS DEAN(S)
PROPOSER E-MAILS LETTER-OF-INTENT AS WORD DOCUMENT TO DR. ALLEN
JACOBS, COLLEGE ASSOCIATE DEAN FOR CURRICULUM AND ASSESSMENT. Dr.
Jacobs determines which campuses are affected by proposal and forwards the Letterof-Intent to the appropriate Campus Dean(s) for Letters-of- Support.
Proposer
Kathie Rogers
(name)
Campus:
A____
E__X__
G_____
Department/ Business/Social Science/Visual Arts
Discipline
Accounting
Telephone
548- 3535 E-mail
rogersk@sunysuffolk.edu
Name of Course Proposal
Fraud Examination
Proposer attaches a brief description and rationale for the proposal on a separate page.
Date
October 30, 2006
College Associate Dean for Curriculum and Assessment completes form below this line.
*******************************************************************
Type of Proposal
Course
New _conversion of special topics course, AC45, to a regular course offering
Revised_____________________________________________________________
Adoption____________________________________________________________
Curriculum
New__________________________
A.A._____ A.S. _____ A.A.S _____
Revised________________________
Certificate
_
Expedited Revision_______________
This proposal requires the following approval(s)
Single Campus ___X__
*College_____
*College approval is required when the proposal has an
impact on more than one campus.
October 30, 2006
Dear Dr. Jacobs,
Please consider the following new course for the Eastern Campus: FRAUD EXAMINATION.
Rationale for the course: The problem of fraud has grown in size and scope, threatening the very
economic underpinnings of business and government. This anti-fraud course would provide
accounting and business students with the educational resources needed to implement current
legislative (The Sarbanes-Oxley Act) and professional guidelines.
Course Description: Fraud examination will cover the principles and methodology of fraud
detection and deterrence. The course includes such topics as skimming, cash larceny, check
tampering, register disbursement schemes, billing schemes, payroll and expense
reimbursement schemes, non-cash misappropriations, corruption, accounting principles and
fraud, fraudulent financial statements, and interviewing witnesses.
I am teaching this course this semester as a special topics course and would like to offer it
each fall on the East campus.
Thank you for your consideration,
Kathie Rogers
Dr. Kathie Rogers, CPA
Associate Professor of Accounting
SUFFOLK COUNTY COMMUNITY COLLEGE
LETTER-OF-SUPPORT FROM CAMPUS DEAN(S)
CAMPUS DEAN(S) E-MAILS LETTER-OF-SUPPORT TO THE FACULTY MEMBER
INITIATING THE LETTER OF INTENT. (Dr. Allen Jacobs, College Associate Dean for
Curriculum and Assessment, receives an electronic copy of Letter-of-Support sent to
proposer.)
*******************************************************************
TO:
Dr. Kathie Rogers, Professor of Accounting
FROM:
Dr. Philip H. Christensen, Campus Dean
DATE:
12-18-06
***********************************************************
Comments:
Although a relatively new elective, a fraud examination course is becoming a more typical offering
within two-year accounting programs. As Dr. Rogers writes: “The problem of fraud has grown in
size and scope, threatening the very economic underpinnings of business and government.”
I strongly support this letter of intent.
cc:
Dr. Allen Jacobs, College Associate Dean for Curriculum and Assessment
You have my support.
Faye Lourenso
Academic Chair of Business, Social Sciences, and Visual Arts Department
Professor, Graphic Design
Suffolk County Community College
121 Speonk-Riverhead Road, Riverhead, NY 11901
631-548-2591
-----Original Message----From:
Kathie Rogers
Sent:
Thursday, January 25, 2007 3:41 PM
To:
Faye Lourenso
Subject:
AC 46 Fraud Examination
Dear Prof. Lourenso,
Please be advised that Dr. Christensen has given his support for the above named new course proposal.
May I have your support as well?
Thank you,
Prof. Kathie Rogers
SUFFOLK COUNTY COMMUNITY COLLEGE
NEW-COURSE PROPOSAL FORM
ORIGINATING CAMPUS: ( ) Ammerman ( X ) Eastern
( ) Grant
Date Submitted to Curriculum Committee: 12/06
To meet the ideals of Suffolk County Community College, new courses should, if appropriate, consider
issues arising from elements of cultural diversity in areas of textbook choice, selection of library and
audio-visual materials, and teaching methodology.
PROPOSER E-MAILS ENTIRE COURSE PROPOSAL PACKET TO THE
APPROPRIATE CURRICULUM COMMITTEE CHAIR AS A WORD DOCUMENT.
Proposal Checklist
Proposer records appropriate departmental votes here and checks to be sure all the documents are
contained within the packet.
( X ) Electronic Letter-of-Intent
( X ) Electronic Letter-of-Support from Campus Dean(s)
( X ) Vote(s) of Department:
Name of Department: Business, Social Science and Visual Arts -EAST_
For: 17
Against: 0 Abstentions: _____
Date of Vote: 12/19/06
Proposer's Initials: KR
Select One: Approved __X_ Not approved_____
Name of Department: _(Name of Department/Campus)_
For: _____
Against: _____
Abstentions: _____
Date of Vote: __________ Proposer's Initials: _____
Select One: Approved_____ Not approved_____
Name of Department: _(Name of Department/Campus)_
For: _____
Against: _____
Abstentions: _____
Date of Vote: __________ Proposer's Initials: _____
Select One: Approved_____ Not approved_____
()
Campus Dean Final-Approval Form(s)
(Proposer completes form to this line before sending entire proposal packet to the appropriate
Curriculum Committee Chair)
-------------------------------------------------------------------------------------cc:
Dr. Allen Jacobs, College Associate Dean for Curriculum and Assessment
Dr. Tina Good, Chair of College Curriculum Committee
Academic Chairs of affected departments
Curriculum Committee Chair completes form below this line and, upon
approval, the Curriculum Committee Chair e-mails the entire proposal packet
to the College Associate Dean for Curriculum and Assessment, with electronic
copies to the appropriate Campus Deans and the College Curriculum
Committee Chair. (If the proposal is not approved, the Curriculum Committee Chair
e-mails proposer and explains why proposal was not approved and sends an electronic
copy of explanation to the College Curriculum Chair and the College Associate Dean for
Curriculum and Assessment.)
******************************************************************
( )
Vote of Curriculum Committee
Name of Committee:_______________________________
For: _____ Against: _____
Abstentions: _____
Date of Vote: __________
Select One: Approved_____ Not approved_____
( )
Vote of Ammerman Faculty Senate (if appropriate)
For: _____ Against: _____
Abstentions: _____
Date of Vote: __________
Select One: Approved_____ Not approved_____
Abstention_____
( )
Vote of East Congress (if appropriate)
For: _____ Against: _____
Abstentions: _____
Date of Vote: __________
Select One: Approved_____ Not approved_____
Abstention_____
( )
Vote of Grant Assembly (if appropriate)
For: _____ Against: _____
Abstentions: _____
Date of Vote: __________
Select One: Approved_____ Not approved_____
Abstention_____
******************************************************************
Proposal is _____Approved
_____Not Approved
Date________________________________________
Comments:
NAME OF PROPOSAL: __AC 46 FRAUD EXAMINATION____________
DEPARTMENT/DISCIPLINE:_BUSINESS, SOCIAL SCIENCE AND VISUAL
ARTS
I.
CATALOG DESCRIPTION: Fraud Examination will cover the principles
and methodology of fraud detection and deterrence. The course
includes such topics as skimming, cash larceny, check tampering,
register disbursement schemes, billing schemes, payroll and expense
reimbursement schemes, non-cash misappropriations, corruption,
accounting principles and fraud, fraudulent financial statements, and
interviewing witnesses.
II.
STATEMENT OF COURSE OBJECTIVES
(Course objectives should be stated in the form of precise, measurable learning outcomes,
e.g., “Upon successful completion of this course, students will . . . . ”)
Upon successful completion of the course, students will have the ability to:

Identify, measure and communicate information about accounting frauds to
interested parties.

Explain how the problem of fraud has grown in size and scope .

Identify some of the challenges facing fraud examination.

Identify the objectives of fraud examination.

Explain the need for fraud detection and prevention.

Identify the major policy-setting bodies involved in fraud examination and their role
in the standard-setting process.







Understand the seriousness of the fraud problem
Understand how skimming is committed and concealed
Understand what “lapping” is and how it is used by fraudsters to conceal
receivables skimming
Identify cash larceny
Understand how cash receipts schemes differ from fraudulent
disbursements
Identify weaknesses in internal controls as inducing factors to cash
larceny
Identify the five major categories of fraudulent disbursements






III.
Understand proactive audit tests that can be used to detect billing
schemes
Understand how check tampering is hidden in a company’s accounting
records
Identify fraud in financial statements
Understand fraud deterrence
Understand and detect concealed liabilities and expenses
Identify red flags associated with fictitious revenues
RELATIONSHIP TO STUDENTS
A.
Credits and Contact Hours
(Provide a rationale for proposed credits and contact hours. See the formula for credit
hours and contact hours on the Curriculum Website.)
B.
Credit Hours_3
Contact Hours_3
Lecture_2
Studio_____
Lab_1
Internship_____
Course Fees
(Will the student be charged additional fees for this course?)
Lab Fees X Course Fees none
Please explain as necessary: This course will be taught in the
computer lab, affording students the opportunity to conduct
internet research of accounting frauds and access the SEC’s Edgar
data base.
C.
Required/Elective/Restricted Elective
Not a required course. This course will be offered as an
elective in both the A.A.S and A.S. Accounting curriculum.
D.
Prerequisites/Co-requisites
(What prerequisites or co-requisites will be required for this course? Provide a
rationale for these requirements.)
AC 11 is a prerequisite for AC 46. Students must have a basic
understanding of the accounting cycle and the Income Statement,
Balance Sheet, Statement of Owners’ Equity and Cash Flow
Statements.
E.
Transferability
Based on the policy of other colleges and universities, there should be
no difference between the transferability of this course and that of any
other elective course that we offer.
F.
Master Schedule
(How would this course fit into the Master Schedule? How often would it be offered?
Would it be offered in the Fall? Spring? Summer? Winter?)
This course would be offered once a year, each Fall.
G.
Estimate of student enrollment
(How many students are anticipated to initially enroll in this course per
Per year? How were these enrollment figures determined?)
semester?
It is expected that between 15 and 20 students will enroll in
this course per fall semester. This estimate is based on the
current enrollment of 14 students in the Special Topics Fraud
Examination course that is currently running on the East Campus
this semester (Fall 2006.)
H.
Class Size
(What is the maximum number of students that should be allowed to enroll in one
section of this course? Provide a rationale for this class size. Should the class size be
forcible?)
The class size is limited to 20 students, because the
computer labs can accommodate a maximum of 20.
IV.
RELATIONSHIP TO FACULTY
A.
Number of current faculty available to teach proposed course and number
of additional faculty required.
One currently; no additional faculty required.
B.
Number of other staff positions required.
None
C.
Discipline(s) required and/or minimum preparation in order to teach
course.
Masters degree in Accounting, preferably a CPA.
V.
RELATIONSHIP TO SUNY GENERAL EDUCATION REQUIREMENTS*
Is this course being proposed as a SUNY General Education Course. If so,
NOT A SUNY GENERAL EDUCATION COURSE
the
VI.
COSTS
List costs and space requirements.
AC 46 will be taught in the computer lab, thus requiring a lab fee.
VII.
COURSE SYLLABUS
SUFFOLK COUNTY COMMUNITY COLLEGE
COURSE SYLLABUS
DRAFT
AC 46
I.
COURSE TITLE: Fraud Examination
II.
CATALOG DESCRIPTION: 2006-2008
Fraud examination will cover the principles and methodology of fraud detection
and deterrence. The course includes such topics as skimming, cash larceny, check
tampering, register disbursement schemes, billing schemes, payroll and expense
reimbursement schemes, non-cash misappropriations, corruption, accounting
principles and fraud, fraudulent financial statements, and interviewing witnesses.
III.
GOALS OF THE COURSE: The accounting faculty will assist accounting and
non-accounting majors to achieve the desired learning outcomes listed below.
In addition, the faculty will provide an opportunity for all students to
develop, improve, expand and practice their written and oral communication,
teamwork, research, analytical and decision-making skills.
To that end, upon successful completion of the course, students will have the ability to:

Identify, measure and communicate information about accounting frauds to
interested parties.

Explain how the problem of fraud has grown in size and scope .

Identify some of the challenges facing fraud examination.

Identify the objectives of fraud examination.

Explain the need for fraud detection and prevention.

Identify the major policy-setting bodies involved in fraud examination and their role
in the standard-setting process.
IV.
STUDENT LEARNING OUTCOMES:
Upon successful completion of AC 46 – Fraud Examination students will
be able to:
 Understand the seriousness of the fraud problem












V.
Understand how skimming is committed and concealed
Understand what “lapping” is and how it is used by fraudsters to conceal
receivables skimming
Identify cash larceny
Understand how cash receipts schemes differ from fraudulent
disbursements
Identify weaknesses in internal controls as inducing factors to cash
larceny
Identify the five major categories of fraudulent disbursements
Understand proactive audit tests that can be used to detect billing
schemes
Understand how check tampering is hidden in a company’s accounting
records
Identify fraud in financial statements
Understand fraud deterrence
Understand and detect concealed liabilities and expenses
Identify red flags associated with fictitious revenues
ACADEMIC PROGRAMS THAT REQUIRE AC 46:
Fraud Examination is not required by any degree program, however it is offered as an
elective in these programs:
Accounting: A. S. Degree
Accounting: A. A. S. Degree
VI.
MAJOR TOPICS REQUIRED
UNIT ONE:
(37 ½ HOURS)
INTRODUCTION TO FRAUD (3 hours approximately)
Addresses the following questions: What is fraud? What are the various
types of fraud? Who commits fraud? What is the Fraud Triangle? How
does one fight fraud?
UNIT TWO: FRAUD PREVENTION (6 hours approximately)
Addresses the following questions: How does one create a culture of
honesty, openness, and assistance? How does a company create a
positive work environment? How can an company eliminate opportunities
for fraud? What comprises a good system of Internal Controls? What is
collusion and how can a company discourage it?
How can a company provide “whistle-blowing mechanisms”?
UNIT THREE: FRAUD DETECTION (5 hours approximately)
Addresses the following questions: What are the symptoms of fraud?
What accounting anomalies should a company be alert for? What are
typical internal control weaknesses? How should a company handle tips
and complaints?
UNIT FOUR:
PROACTIVE APPROACHES TO DETECTING FRAUD (4 hours approximately)
Includes the following: Commercial data-mining software. Digital analysis of
company databases. Analyzing Financial Statements. Detecting and
identifying fraud perpetrators.
UNIT FIVE:
FRAUD INVESTIGATION (5 hours approximately)
Includes the following: Theft investigative methods. Coordinating an
investigation. Surveillance and covert operations. Physical evidence.
Concealment methods. Aspects of documentary evidence. Document experts.
Government sources of information. Private sources of information. Online
databases. The “net worth method”.
UNIT SIX:
INQUIRY METHODS AND FRAUD REPORTS (4 hours approximately)
Includes the following: Honesty testing. Pencil and paper tests. Characteristics
of a good interview. Planning an interview. The language of the interview.
Mechanics of the interview. Question sequence. Observing respondent
reactions.
UNIT SEVEN: MANAGEMENT FRAUD (3 hours approximately)
Includes the following: The problem of Financial Statement fraud. The nature
of Financial Statement fraud. Motivations for Financial Statement fraud.
Management and the Board of Directors.
UNIT EIGHT: FINANCIAL STATEMENT FRAUD (2.5 hours approximately)
Addresses the following questions: What types of funds involve business- type
activities? What are the three basic statements of proprietary fund
accounting? What are internal service funds and how are they accounted for?
How are proprietary funds accounted for?
VII
STUDENT LEARNING ASSESSMENT (5 hours)
VIII.
Assessment tools include traditional, in-class examinations
(including short-answer and essay), writing assignments, in-class group oral
presentations, and a research project.
It is strongly suggested that in addition to any other assignments,
there be at least three (3) full-period examinations.
B.
It is recommended that faculty create a student centered learning
environment including the use of teams, student presentation and the
liberal use of computers. It is recommended that faculty integrate
computer technology in their teaching methodology including web
based assignments.
C.
The Accounting Department endorses the college’s “Writing to Learn”
initiative and strongly recommends that a writing component be included
in all accounting courses.
SPECIAL INSTRUCTIONS:
A.
VIII.
A.
AC 11 is a prerequisite for AC 46
SUPPORTING INFORMATION:
A wide assortment of appropriate visual aids are available through the
college library system and/or the campus departments. Contemporary
periodicals including The New York Times, Wall Street Journal, business
magazines, Internet sources and On-line textbook support also serve as
useful teaching and learning resources.
SUFFOLK COUNTY COMMUNITY COLLEGE
PRINCIPLES OF FRAUD EXAMINATION
Dr. Kathie Rogers, CPA
Office:
Orient 226
Phone:
548- 3535
E-mail:
rogersk@sunysuffolk.edu
Office hours: Monday
7:00 - 7:30 a.m.
Wednesday 7:00 - 7:30 a.m. and 11:15 – 11:45 a.m.
Tuesday and Thursday
10:30 - 11:30 a.m.
And by appointment
Text:
Principles of Fraud Examination, Joseph T. Wells, John Wiley & Sons, Inc., 2005.
PURPOSE OF THE COURSE:
The problem of fraud has grown in size and scope, threatening the very economic underpinnings of
business and government. This anti-fraud course will provide students with the educational resources
needed to implement current legislative (The Sarbanes-Oxley Act) and professional guidelines
(Statement on Auditing Standards No.99- Consideration of Fraud in a Financial Statement Audit)
for certified public accountants.
COURSE DESCRIPTION:
Fraud examination will cover the principles and methodology of fraud detection and
deterrence. The course includes such topics as skimming, cash larceny, check tampering,
register disbursement schemes, billing schemes, payroll and expense reimbursement
schemes, non-cash misappropriations, corruption, accounting principles and fraud, fraudulent
financial statements, and interviewing witnesses.
COURSE OBJECTIVES:
Upon completion of this course, the student will be able to:


Understand how skimming is committed and concealed
Understand what “lapping” is and how it is used by fraudsters to conceal
receivables skimming






Identify cash larceny
Understand how cash receipts schemes differ from fraudulent disbursements
Identify weaknesses in internal controls as inducing factors to cash larceny
Identify the five major categories of fraudulent disbursements
Understand proactive audit tests that can be used to detect billing schemes
Understand how check tampering is hidden in a company’s accounting
records
In addition:






Initiate, understand, assess, and assume responsibility for your own ongoing learning.
Access and use accounting resources effectively.
Work alone and collaborate with others.
Resolve dilemmas emerging from complex situations.
Think and communicate effectively using appropriate means.
Clarify personal values, purposes and goals.
RESOURCES:
You will benefit in this course by access to written materials and to people. Resources
available to you include:
Course outline – This outline provides you with essential information about the course
Tutoring – Suffolk Community College provides (free of charge) accounting tutoring in Orient
Room 234. Phone 548- 2594 for details. All students should take advantage of this service.
Academic computing center – Students can use the computing center to complete the assigned
general ledger software problems. Phone 548-2612 for hours.
Textbook Publisher – The publisher of our text offers several learning aids to assist students. For
information on these resources access the following web site:
http://www.wiley.com/college/wells
Accounting/Fraud web sites –
http://www.ACFE.org
www.aicpa.org (CPA exam info, links to the NYS Society of CPAs and other great sites)
www.irs.gov (Internal Revenue Service)
www.wsj.com (Wall Street Journal)
www.sec.gov (Securities and Exchange Commission)
www.imanet.org ( Institute of Management Accountants)
COURSE REQUIREMENTS:
Like all courses, this class has specific requirements:

STUDY all assigned text material.

All homework must be completed and maintained by the student.

Submit lab assignments on time.

Participate in solution of assigned homework problems and discussion of assigned questions.
Reading, written and computer lab assignments are given throughout the semester. It is expected
that assignments will be completed when due and that you will be ready to discuss solutions.
Homework will be checked at various times throughout the semester without prior
announcement. Consequently, you should always have your homework completed, ready to be
submitted.

Satisfactory completion of all examinations. If you miss or fail an exam you must take the
comprehensive final exam.

Due to the difficulty of the subject matter of this course students should be prepared to spend at
least four hours of study time per week outside of class in order to obtain a passing grade.

Students are strongly encouraged to make an appointment with the instructor at the first sign of
difficulty.

Students are encouraged to form Study Groups to work on homework and study for tests.
GRADING:
Grading is the province of the individual instructor. As in most college courses, the average
student doing the average amount of work can expect to earn a grade of “C” for the course.
However, students come into AC 46 at all levels of proficiency: some may work very hard and still
barely manage to bring their grade up to average college standards. Knowing as I do that an
Accounting course is a course in language learning, and knowing as well that language learning
proceeds most expeditiously under conditions of positive reinforcement, I reserve the right to adjust
your earned grade half a grade (say from a C- to a C) in recognition of extraordinary effort, as
evidenced in lab exercises, homework completion, and class participation.
There are numerous opportunities to perform well in this class. Your grade will be a function
of your performance on the following:
Percent of Total
Exams (2 during the term)
Fraud Case
TOTAL

80
20
100 %
A comprehensive final exam will be given on December ________. This is the ONLY
make-up exam given during the semester.
ATTENDANCE:
ATTEND ALL CLASSES.
1 Absence = Removal from the class roster (no excuses: if you are very ill or suffering from
personal problems which prohibit you from attending class, please withdraw by the college
deadline). Even if you have legitimate excuses for being absent, it is just not feasible to assume that
if you miss more than one class you will be getting the information you need to earn 3 credits. “The
college defines excessive absences or lateness as more than the equivalent of one week of class
meetings during the semester. A student may be asked to withdraw from a class by an instructor
when, in the judgment of the instructor, absences have been excessive.” (SCCC 2006 – 2008 Course
Catalog, p. 68).
LATENESS:
Lateness will not be tolerated. It is rude and disruptive to the learning process. Three late events =
one absence. What is a “late event”? A late event is any time that you enter class after I have begun
that day’s lesson.
WITHDRAWAL FROM CLASS:
The last day to withdraw from class and be guaranteed a “W” grade is Oct. 30. Please do not ask me
to sign a “W” slip after this date. There will be ABSOLUTELY NO EXCEPTIONS TO THIS
POLICY.
PARTICIPATION:





Ask questions
Participate in class
Assist your peers
Seek new information
Challenge yourself
LEARNING TOOLS:
You, the student, are the center of the learning process. While your professor can provide you
with the guidance and materials that you need to succeed, it is your responsibility to set goals, plan
your work, make notes from readings, lectures and discussions, and schedule the time you will need
to complete assignments.
Developing good study skills can not only save you time and energy, but can also help you
learn better, independently and with less guesswork. My suggestions include:








Set learning goals
Plan and organize a schedule with ample time for reading, studying, reviewing and studying for
tests
Adjust your schedule as the class progresses
Break down work into manageable units
Pace the course workload evenly
Use a study location free of distractions
Review periodically
Set incentives or rewards for yourself
Study with others. One of the best ways of learning is to study with someone else.
Get to know one or more students in this class and work together. After a reading
assignment, review the answers to the assigned chapter questions and discuss what
you believe were the major points. Test each other for specific knowledge.
QUESTIONS
ISSUES
CHAPTER
1
9/12
1,4,8
1
Intro to Fraud
Examination
2
9/19
1,2,3,5,6,8,9
Skimming
10
3
9/26
1,2,3,5,6,8,9
2
1,2,3,5,6,9
2,3
Cash Larceny
4
10/3
Billing Schemes
10
OCTOBER 10
TEST 1
9
10/17
1,3,5,6,7,10
4,7
1,2,5,6,9,10
6,10
Non-cash Assets
10
10/24
Corruption
11
10/31
1-7
3,6
Accounting Principles &
Fraud
12
11/14
1-8, 11,14
8
Fraudulent Fin. Stm.
Schemes
NOV.
11/28 12/5
12/12
21
CASE
STUDIES
FINAL
TEST 2
CUMULATIVE FINAL EXAM
DECEMBER 12, 2006
PLEASE NOTE: The ONLY make-up Exam will be comprehensive in nature and will be
administered on December 12, 2006.