Accounting Information Systems
Fraud part 1
Homework Assignment 3
Deliverable
Typed paper, no required length or number of words. I encourage you to type your answers on this document, so you have the questions and answers together. If you do that, you must still provide a bibliography with only the resources you actually used.
Do NOT directly quote from any specific resource (but DO properly reference resources utilized.) I want your own words. Follow APA citation guidelines for all resources utilized.
Assignment
1. Review the PCAOB Disciplinary report for Moore & Associates. In your opinion, were Ethos, Standard Drilling, and Biocoral committing fraud by hiring Moore & Associates? Why or why not?
2. Read pages 1-32 of the 2012 Report to the Nations (see link below.) then answer questions 3 and 4.
3. Define and describe each of three types of fraud. Include facts about the frequency, losses, duration, most common perpetrators, and most likely way the fraud is discovered.
4. Research and describe one example of each type of fraud that occurred within the past 3 years. Identify your source and the company name. For your asset misappropriation example, identify the sub-category to which your example relates (if possible.)
5. Read pages 32-38 of the 2012 Report to the Nations. Then answer questions 6, 7 and 8.
6. Give your reasoned opinion as to why external audits of financial statements and external audits of ICOFR (internal control over financial reporting) are not more effective at detecting fraud.
7. Identify and describe the three sides of the fraud triangle. Give one example of each side.
8. The concept of a fraud diamond was introduced in 2004. How does the fraud diamond differ from the fraud triangle?
Required Research Resource
.acfe.com/uploadedFiles/ACFE_Website/Content/rttn/2012-report-to-nations.pdf”>2012 Report to the Nations
Potential Research Resources
.fraudessentials.com/index.php?option=com_content&view=article&id=8&Itemid=10″>Asset Misappropriation
.theifp.org/research-grants/IFP-Whitepaper-5.pdf”>Asset Misappropriation
.allbusiness.com/crime-law-enforcement-corrections/criminal-offenses/6635361-1.html#axzz2HiFMiQu7″>Three Basic Fraud Types
.228.182.15/ourvalues/assets/KickGratCOI.pdf”>Kickbacks, Gratuities, and Conflicts of Interest
.about.com/od/glossaryc/qt/conflict-of-interest.htm”>Conflict of Interest Examples
.freeadvice.com/violent_crimes/extortion.htm”>What is Extortion?
.thefreedictionary.com/extortion”>Extortion
.wisegeek.com/what-is-a-conflict-of-interest.htm”>What is a Conflict of Interest?
.journalofaccountancy.com/Issues/2001/Dec/EnemiesWithin.htm”>Enemies Within; Asset Misappropriation Comes in Many Forms
.asic.gov.au/asic/pdflib.nsf/LookupByFileName/AICD_speech_080605.pdf/$file/AICD_speech_080605.pdf”>Financial Statement Fraud; Corporate Crime of the 21st Century
.calstatela.edu/dryan/ACCT435/Crumbley%20Homework/4Ed_CCH_Forensic_and_Investigative_Accounting_Solutions_03.pdf”>Fraudulent Financial Reporting
.wccfighter.com/FinancialStatementFraudRedFlags.html”>Financial Statement Fraud: Detecting the Red Flags
.acfe.com/uploadedFiles/ACFE_Website/Content/documents/occupational-fraud.pdf”>Occupational Fraud: A Study of the Impact of an Economic Recession
.com/”>Fraud Info
.acfe.com/uploadedFiles/Shared_Content/Products/Self-Study_CPE/intro-to-fraud-exam-2011-extract.pdf”>Introduction to Fraud Examination
I strongly encourage you to find at least two sources on your own, in addition to any of the above.
