TRISAKTI SCHOOL OF MANAGEMENT

SEKOLAH TINGGI ILMU EKONOMI TRISAKTI

JAKARTA
COURSE DESCRIPTION

Media
GENERAL INSTRUCTION OBJECTIVE a. LCD and In focus
b. Computer
Mata Kuliah : Fraud Audit c. Photocopy
Subject : Fraud Audit After studying this chapters, the student should understand : d. White Board
Code No. : - Define Fraud and Anti -Fraud Professions : Fraud Auditors, Forensic Accountants etc Assessment
Program : S-1 Accounting - Understand the fraud theory approach a. Mid test (%)
Number of : 3 (three) credits - Define fraud, abuse and error b. Final test (%)
Credit - Understand about the fraud theory approach : Fraud triangle,fraud diamond c. Quiz (%)
- Understand about the redflags of fraud d. Assignment&Presentation (%)
Learning Process : - Understand about fraud risks in an organization Text Books :
a. Lecturer : explain, discuss of concepts and principles with application - Understand about Fraud Prevention and Fraud Detection A. Singleton, Tommy,W, Fraud Auditing and Forensic Accounting, 4th Ed, John Wiley & Sons. 2010
solution of demonstration problems, cases and assignment. - Deeply understand about occupational Fraud and Fraud Tree : Asset Misappropriation, Corruption and Financial Statement Fraud B. Wells. Joseph T, Principle of Fraud Examination, 4th ed., John Wiley & Sons, 2014
- Aware about ACFE global study on occupational fraud and abuse 2020 : Report to The Nations C. Wells. Joseph T, Corporate Fraud Handbook – Prevention and Detection, 5th Ed, John Wiley & Sons , 2017

Suppoting/Other Sources :
www. [Link] (Report To The Nation. 2020)
O'Gara, John D, Corporate Fraud- Case Study in Detection & Prevention, John Wiley & Sons 2004
Related sources, cases and materials from Web

WEEK SPECIFIC INSTRUCTION OBJECTIVES MAIN SUBJECT SUBJECT SOURCE ASSIGNMENT

1 2 3 4 5 6
1 - Introduction to Fraud Auditing Introduction to fraud auditing and - Fraud and Anti-fraud professions A: Chapter 1 s/d 3 Related Cases
- Understand Fraud Cycle anti-fraud professions - Fraud Cycle
- Awareness about Fraud survey 2020 Fraud Principles - Forensic Accountant
- Define Fraud, abuse, error Fraud Schemes - Fraud Auditors
- Understand Fraud Triangle - Keys to effective fraud investigation
- Understand Fraud Diamond - Fraud, abuse, error denitions
- Understand Profiles of Fraudsters - Fraud Triangle
- Define Fraud Schemes - Fraud Diamond
- Understand about fraud tree - Profile of Fraudsters
- ACFE Fraud Tree

2 - Understand Fraud Redflags in Asset Misappropriation, Corruption and Financial Statement Fraud Red Flags - Common Redflags A: Chapter 4 s/d 5 Related Cases
- Deeply Understand about Fraud Risks and how to assess the risks Fraud Risk Assessment - Spesific Redflags
- Detection Model
- What is fraud risk?
- Factors that infuence fraud risk
- Objectives of fraud risk assessment
- Developing an effective fraud risk assessment

3 - Understand about fraud prevention techiques Fraud Prevention - Prevention Environment A: Chapter 6 Related Cases
- Understand how to implement the tecniques Fraud Detection - Perception of Detection
- Understand about fraud detection techiques - Classic Approaches of prevention
- Understand how to implement the tecniques - Other prevention Measures
- Fraud Detection Axioms A : Chapter 7
- Common Detection Methods
- Spesific Detection Methods

4 - Define Skimming Skimming - Case Study B: Chapter 2 Related Cases

- List and understand the two principal categories of skimming schemes - Skimming Data from the ACFE 2020 Global Fraud Survey C: Chapter 3
- Understand how sales skimming is committed and concealed. - Skimming Schemes
- Understanding schemes involving understated sales. - Sales Skimming
- Understand how cash register manipulations are used to skim currency. - Receivables Skimming
- Be Familiar with how sales are skimmed during nobusiness hours - Preventing Skimming
- Understand the techniques discussed for preventing and detecting sales skimming. - Proactive Computer Audit Tests for Detecting Skimming
- List and be able to explain the six methods typically used by fraudsters to conceal receivables skimming.
- Understanding what " Lapping" is and how it is used to hide skimming schemes
- Be familiar with how fraudster use fraudulent write-offs or discounts to coceal skimming.
- Understand the techniques discussed for preventing and detecting receivables skimming
- Be familiar with proactive audit tests can be used to detect skimming.

5 - Define cash larceny Cash Larceny - Cash Larceny Data from the ACFE 2020 Global Fraud Survey B: Chapter 3 Related Cases
- Understand how cash receipts schemes differ from fraudulent disbursements - Cash Larceny Schemes C: Chapter 4
- Recognize the difference between cash larceny and skimming - Larceny at the Point of Sale
- Understand the relative frequency and cost of cash larceny schemes as opposed to other forms of cash misappropriations. - Larceny of Receivables
- Identify weaknesses in internal control as inducting factors to cash larceny schemes. - Cash Larceny from the Deposit
- Understand how cash larceny is committed at the point of sales - Preventing Cash Larceny
- Discuss measures that can be used to prevent and detect cash larceny at the point of sales. - Proactive Computer Audit Tests for Detecting Cash Larceny
WEEK SPECIFIC INSTRUCTION OBJECTIVES MAIN SUBJECT SUBJECT SOURCE ASSIGNMENT

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- Understand and indentify varius methods used by fraudsters to conceal cash larceny of receivables.
- Understand schemes involving cash larceny from deposits, including lapping and deposits in transit.
- Understand controls and procedures that can be used to prevent and detect cash larceny from bank deposits.
- Be familiar with proactive audit tests that can be used to detect cash larceny schemes.

6 - List the five major categories of fraudulent disbursement Billing Schemes - Billing Scheme Data from the ACFE 2020 Global Fraud Survey B: Chapter 4 Related Cases
- Define billing schemes - Billing Schemes C: Chapter 7
- List the three categories of billing schemes - Billing Schemes Involving Nonaccomplice Vendors
- Understand what a shell company is and how it is formed. - Pay-and-Return Schemes
- List and Understand the four ways false invoice are approved for payment - Overbilling with a Nonaccomplice Vendor’s Invoices
- Understand why most shell company schemes involve the purchase of services rather than goods. - Preventing and Detecting Fraudulent Invoices from a Nonaccomplice Vendor
- Understand how a pass-through scheme differs from the usual shell company schemes - Personal Purchases with Company Funds
- Be Familiar with the methods identified in this chapter for preventing and detecting shell company schemes. - Personal Purchases through False Invoicing
- Understand how pay-and-return schemes work - Personal Purchases on Credit Cards or Other Company Accounts
- Understand how nonaccomplice vendor schemes work - Preventing and Detecting Personal Purchases on Company Credit Cards and Purchasing Cards 107
- Be familiar with the methods identified in this chpater for prventing and detecting personal purchases schemes. - Proactive Computer Audit Tests for Detecting Billing Schemes
- Be familiar with proactive audit tests that can be used to detect billing schemes.

7 - Define ceck tampering schemes Check Tampering - Check Tampering Data from the ACFE 2020 Global Fraud Survey B: Chapter 5 Related Cases
- Understand the five principal categories of cecck tampering - Check Tampering Schemes C: Chapter 5
- Detail The means by which employees fraudulentaly obtain company checks - Forged Maker Schemes
- Understand how forged signatures are created on black ceck stock - Forged Endorsement Schemes
- Be familiar with the methods identified in this chapter for preventing and detecting forged makers schemes - Altered Payee Schemes
- Differentiate between forged maker and forged andorsement schemes. - Concealed Check Schemes
- Detail the methods employee use to intercept outgoing checks before the are delivered to the intended payee - Authorized Maker Schemes
- Be able to discuss methods the can be used to prevent and detect the theft and alteration of outgoing company checks. - Concealing Check Tampering
- Understand how authorized maker shemes work and why the are especially difficult to prevent. - The Fraudster Reconciling the Bank Statement
- Explain how to check tampering is hidden in a company's accounting records - Re-Altering Checks
- Describe measusres companies can take to prevent and detect fraudulent electronic payments. - Falsifying the Disbursements Journal
- Be familiar with proactive audit tests that can be used to detect check tamparing. - Reissuing Intercepted Checks
- Bogus Supporting Documents
- Electronic Payment Tampering
- Prevention and Detection
- Proactive Computer Audit Tests for Detecting Check Tampering Schemes .

8 Mid Test
9 - List and Understand the three main categories og payroll Fraud Payroll Schemes - Payroll Scheme Data from the ACFE 2020 Global Fraud Survey B : Chapter 6 Related Cases
- Understand the relative cost and frequency of payroll frauds. - Payroll Schemes C: Chapter 8
- Define a ghost employee. - Ghost Employees
- List and understand the four steps of making a ghost employee scheme work. - Falsified Hours and Salary
- Understand how ssperation of duties in payroll and human resources finctions can reduces the - Commission Schemes
- Be familiar with methods identified in this chapter for preventing and detecting ghost employess schemes. - Proactive Computer Audit Tests for Detecting Payroll Fraud.
- List and Understand the four ways that employees can obtain authorizations for a falsified time card in a manual system.
- Understand the role that payroll controls play in preventing falsified hours and salary schemes.
- Discuss the methods identified in this chapter for preventing an detecting falsified hours and salary schemes
- Understand how employee commit commission schemes
- Identify red flags that are typically associated with commission schemes
- Be familiar with proactive audit tests that can be used to detect varous forms of payroll fraud

10 - Explain what constitutes expense reimbursement fraud Expense Reimbursement Schemes - Expense Reimbursement Data from the ACFE 2020 Global Fraud Survey B: Chapter 7 Related Cases
- Discuss the data on expense reimbursement fraud from the 2011 Global Fraud survey - Expense Reimbursement Schemes C: Chapter 8
- Understand how mischaracterized expense reimbursement schemes are committed. - Mischaracterized Expense Reimbursements
- Be familiar with the controls identified in this charter for preventing and detecting mischaracterized expense schemes. - Preventing and Detecting Mischaracterized Expense Reimbursements
- Identify the methods employees use to overstated otherwise legitimate expense on their expense reports. - Overstated Expense Reimbursements
- Understand Controls that can be used to prevent and detect overstated expense schemes. - Fictitious Expense Reimbursement Schemes
- Explain what a fictitious expense reimbursement scheme is and differentiate is from other forms of expense reimbursment fraud - Multiple Reimbursement Schemes
- Identify red flags that are commonly associated with fictitous expense schemes - Proactive Computer Audit Tests for Detecting Expense Reimbursement Schemes .
- Discuss the controls indentified in this chapter for preventing and detecting multiple reimbursement schemes.
- Be familiar with proactive audit tests that can be used to detect various forms of expense reimbursement fraud.

11 - Explain what constitutes a registere disbursement scheme - Register Disbursement Data from the ACFE 2020 Global Fraud Survey B: Chapter 8 Related Cases
- Differentiate register disbursements from skimming and cash larceny schemes - Register Disbursement Schemes C: Chapter 6
- List the two basic categories of register disbusrsement - False Refunds
- Explain how false refund schemes refund schemes are committed Registered Disbursement Schemes - False Voids
- Explain how false void schemes are committed - Concealing Register Disbursements
- Understand how register disbursement schemes cause shrinkage - Small Disbursements
- Discuss the methods by which fraudulent register disbusrsements are concealed - Destroying Records
- Understand the methods identified in this chapter for preventing and detecting register disbusrsement schemes - Preventing and Detecting Register Disbursement Schemes
- Be familiar with proactive audit tests that can be used to detect register disbursement schemes. - Proactive Computer Audit Tests for Detecting Register Disbursement Schemes

12 - List the five categories of tangible non cash misappropriations - Noncash Misappropriation Data from the ACFE 2020 Global Fraud Survey B: Chapter 9 Related Cases
WEEK SPECIFIC INSTRUCTION OBJECTIVES MAIN SUBJECT SUBJECT SOURCE ASSIGNMENT

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- Discuss the data on noncash misappropriations from the 2011 Global Fraud Survey - Noncash Misappropriation Schemes C: Chapter 9
- Explain how misuse of noncash assets can negatively affect organizations Noncash Assets - Misuse of Noncash Assets
- Understand how and why unconcealed larceny of noncash assets occurs - Unconcealed Larceny Schemes
- Be familiar with internal controls and test that can be used to prevent and detect noncash larceny - Asset Requisitions and Transfers
- Understand how weaknesses in intternal asset requisition and transfer - Purchasing and Receiving Schemes
- Explain how purchasing and receiving schemes are used to misappropriate noncash assets - False Shipments of Inventory and Other Assets
- Understand how the theft of non cash assets througt the use of fraudulent shipment is accomplished - Other Schemes
- Define shrinkage - Concealing Inventory Shrinkage
Describe how fraudsters conceal the theaft of noncash assets on the victim organization’s books - Altered Inventory Records
- Describe how employees can misappropriate intangible assets, as well as how companies can protect themselves from such schemes - Fictitious Sales and Accounts Receivable
- Be familiar with proactive audit test that can be used to detect misapproptiations of noncash assets - Write Off Inventory and Other Assets
- Physical Padding
- Preventing and Detecting Thefts of Noncash Tangible Assets that are Concealed by Fraudulent Support
- Misappropriation of Intangible Assets
- Misappropriation of Information
- Misappropriation of Securities
- Proactive Computer Audit Tests for Detecting Noncash Misappropriations

13 - Define corruption - Corruption Data from the ACFE 2020 Global Fraud Survey C: Chapter 10,11
- Identify the four categories of corruption - Corruption Schemes
- Define bribery Corruption - Bribery
- Compare and contrast bribery, exortion, and illegal gratuties - Kickback Schemes
- Identify the two categories of bribery schemes - Overbilling Schemes
- Understand kickback schemes and how they are commited - Bid-Rigging Schemes
- Understand bid-ringging schemes and explain how they are categorized - Something of Value
- Describe the types of abuses that are commited at each stage of the competitive bidding process - Illegal Gratuities
- Be familiar with the controls and techniques that can be used to prevent and detect bribery - Economic Extortion
- Define conflicts of interest - Conflicts of Interest
- Diffentiate conflicts of interest from bribery schemes and billing schemes - Purchasing Schemes
- List and understand the two major categories of conflicts of interest - Sales Schemes
- Understand the provisions of U.S and U.K. anti-corruptions legislation - Other Conflict of Interest Schemes
- Be familiar with proactive audit test that can be used to detect corruption schemes - Preventing and Detecting Conflicts of Interest
- Anti-Corruption Legislation
- Foreign Corrupt Practices Act
- The United Kingdom Bribery Act
- Proactive Computer Audit Tests for Detecting Corruption

14 - Define fraud as it relates to financial statments - Fraud in Financial Statements B: Chapter 11 Related Cases
- Identify the three main groups of people who commit financial statement fraud - Conceptual Framework for Financial Reporting C: Chapter 12
- List the three primary reasons people commit financial statement fraud Accounting Principles and Fraud - Responsibility for Financial Statements
- Describe the three general methods used to commit financial statement fraud - Users of Financial Statements
- Define overstatements - Types of Financial Statements .
- Define understatements - The Sarbanes–Oxley Act of 2002
- Describe the conceptual framework for financial reporting - Financial Statement Fraud Data from the ACFE 2020 Global Fraud Survey

15 - Define financial statement fraud /Financial shenanigans and related schemes - Defining Financial Statement Fraud/ financial shenanigans B: Chapter 12 Related Cases
- Understand and identify the five classifications of financial statement fraud - Costs of Financial Statement Fraud C: Chapter 13
- Explain how fictitious revenues schemes are commited, as well as the motivation for, and result of, commiting such fraud - Fictitious Revenues
- Explain how timing difference schemes are commited, as well as the motivation for , and result of, commiting such fraud - Timing Differences
- Describe the methods by which concealed liabilities and expenses are used to fraudulenty improve a company’s balance sheet Financial Statement Fraud Scheme - Concealed Liabilities and Expenses
- Understand how improper disclosures may be used to mislead potential investor, creaditors, or others users of the financial statements - Improper Disclosures
- Recognize how improper asset vluation may inflate the current ratio - Improper Asset Valuation
- Identify detection and deterrence procedures that may be instrumental in dealing with fraudulent financial statement schemes - Detection of Fraudulent Financial Statement Schemes
- Understand financial statement analysis for detecting fraud - Deterrence of Financial Statement Fraud
- Identify and characterize current professional and legislative actios that have sougt to improve corporate governance, enchance the realibility and quality of financial reports, and
foster credibility and effectiveness of audit functions

16 Final Test

Jakarta, February 2021

Head Of Accounting Department Coordinator

Friska Firnanti, SE, MM, Susanto Salim SE., MM., Ak., CA., CPA.,CPMA.,ACPA
WEEK SPECIFIC INSTRUCTION OBJECTIVES MAIN SUBJECT SUBJECT SOURCE ASSIGNMENT

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