CJ225: Fraud Investigation

1. CJ225: Fraud Investigation Instructor: Patrick Coughlin, J.D.

2. CJ225: Fraud Investigation Instructor: Patrick Coughlin, J.D.

3. Grading • Discussion Boards: • 1.    Postings demonstrate critical thought • 2.   Postings are in the 100-word range, • 3.    At least 2-postings made per discussion thread (one in response to question and one responding to another student’s posting), • 4.    All postings made prior to the conclusion of each unit. • It should be noted that you will not be able to post messages after the conclusion of each unit.

4. Seminars Not Enough to just attend – Get Involved Arrive on time If miss a seminar – write a 300-500 word essay summarizing what was discussed in the seminar based on your review of the ARCHIVED SEMINAR. Submit paper to docsharing

5. Unit 4: The law, Justice System and the Courts Attend Seminar Read Chapters 8 & 9 Respond to BOTH Discussion Questions & 1 other student/professor response per DB question Review Supplemental Material in Unit 4 Take Quiz

6. Case 3 Enron, one of the largest corporations to ever file for Chapter 11 bankruptcy protection, was number 7 on the Fortune 500 list of the largest companies in America as ranked by revenues at the time of its bankruptcy. It was alleged that Enron executives were involved in questionable accounting and financial statement fraud, the disclosure of which led to the downward spiral in Enron’s stock price and the financial ruin of thousands of employees and investors. In addition to Enron’s internal accounting problems, it is alleged that its auditor, one of the large accounting firms, instructed employees to destroy documents related to its work for Enron.

7. Case 3 Based on your understanding of a fraud examiner’s responsibilities regarding documents, what should the audit firm personnel have done with their documents if they had suspected that fraud had occurred?

8. Case 4 Marlin Company has suspected something “fishy” for several months. It has noticed that its profits have been slowly decreasing, while revenues have been increasing. After consulting with you, a fraud expert, the company has decided to investigate the purchasing patterns of its three purchasing agents—Curly, Larry, and Moe.

9. Case 4 You decide that a good method for investigation into the matter is examining a random sample of purchase invoices and verifying their accuracy and validity. Curly’s invoices are numbered 0001 through 1000, Larry’s are 1000 through 1999, and Moe’s are 2000 through 2999. When you approach Curly, Larry, and Moe, they seem somewhat defensive. They begin to harass one another, blaming each other for the mess in which they are involved. Moe even twitches their noses and slaps their heads. Curly attempts to retaliate by poking Moe in the eye, but misses and hits Larry instead. When the three were done, the CFO, Mr. Rutin-Tutin, exclaimed, “Would you three stooges quit fooling around and produce the invoices immediately?” The three shuffled off to their offices, grumbling all the way. They returned a couple of hours later with photocopies of their invoices.

10. Case 4 When Mr. Rutin-Tutin asked where the original invoices were, they explained that they always copy and destroy the originals for easier storing purposes. Rather annoyed and fed up with the three morons, Mr. Rutin-Tutin hands you the stacks of photocopied invoices and tells you to do your thing. What is wrong with this picture? Are you suspicious that fraud is present? What is a possible first step in verifying the invoices?

11. Unit 2 Review Key Terms Read Chapter 4 & 5 in Fraud Examination Review the chapter summary PowerPoint presentations  Complete Web Field Trip View Short Video: Arthur Anderson and Ethics Attend the weekly seminar Respond to the discussion board Take the quiz