american accounting association annual meeting san francisco
TRANSCRIPT
American Accounting Association
Annual Meeting
San Francisco, California
July 31, 2010
Patricia Johnson
Canisius College
Overview of Materials◦ Websites◦ Videos◦ Publications ◦ Textbooks
Suggestions for Specific Courses◦ Financial Accounting◦ Intermediate Accounting◦ Advanced Accounting◦ Auditing◦ Fraud Examination
Anti-Fraud Education Partnership◦ School has or is planning a fraud examination course◦ Receive 11 free videos and workbooks ◦ Sample syllabi, copies of reference material for the
library, guest lecturers, recognition on website
Educator Membership◦ $25 per year◦ Benefits include Fraud magazine, FraudInfo electronic
newsletter, access to archived articles, free or reduced cost training, free or discounted CFE prep course
◦ http://www.acfe.com/membership/educators.asp◦ Higher Education Coordinator : Lupe DeLeon
2010 Report to the Nation
From Introduction to Fraud Examination Excerpt, ACFE.com
Journal of Accountancy Fraud Articles
Forensic and Valuation Reporter Newsletter◦ Sample
Accounting Education Resources – Integrating Fraud Education into the Accounting Curriculum – PowerPoints of major frauds, suggested materials
Catch Me if You Can -http://www.startheregoplaces.com/
What’s Your Fraud IQ? JOA May 2010
CNN Money – Enron The Pros and the Cons – Gary Zeune White Collar Fraud – Sam Antar’s site Deloitte Forensic Center – Videos, Articles Institute of Internal Auditors RevenueRecognition.Com EtikaLLC.Com – Walt Pavlo, Justin Paperny KPMG – Fraud Survey, Ethics Survey Ernst and Young – Global Fraud Survey Grant Thornton – Faculty Resources Auditnet
Goldman Fraud Case
Bernard L. Madoff – NYTimes Topics
Classic Financial and Corporate Scandals
How to Cook the Books
Footnoted.com
Moneylaundering
National White Collar Crime Center
FBI
Guidestar
Bob Jensen’s website – fraud resources
Money in State Politics
Caseplace.org Business Ethics Cases and Resources (Grey
Matters Game) The Performer’s Case Issues in Accounting Education
◦ May, 2003 Edition Tallahassee Bean Counters◦ November, 2009 Edition Forensic Accounting and Fraud
Examination ◦ May, 2010 Edition – Return of the TBC◦ November, 2002 – Quality of Earnings and Accounting
Estimates
Contemporary Auditing: Real Issues and Cases –Michael Knapp
Harvard Business Cases◦ Ex. Accounting Fraud at WorldCom May 4, 2005
Auditing After Sarbanes-Oxley – Jay Thibodeau and Deborah Freier
State Comptrollers’ Office ◦ Ex. NYS Roslyn School District
Adelphia Case Study – www.financeprofessor.com
Innovation in Accounting Education – Internal Control Video – Snyder and Clifton
Apollo Shoes – Louwers Trueblood Cases - Deloitte
Frontline - The Madoff Affair
ABC Video – Going to Prison
Harry Markopolus - From Madoff to Medical Fraud
House of Cards: The Mortgage Mess CBS video
Something’s Fishy at Jones Company – Martin Coe, Jeffrey Coussens, John Delaney
The Informant (2009)
Quiz Show (1994)
Catch Me If You Can (2002)
Enron: Smartest Guys in the Room (2005)
Hulu.comYoutube.com
Model Curriculum Project – WVU DOJ
SEC Enforcement Releases -http://www.sec.gov/divisions/enforce/friactions.shtml
Blog – re:the auditors
The Updated Auditor – Louwers
Cynthia Hetherington – Business Background Investigations; The Manual to Online Public Records; Newsletter; Social Network Searches
Business Fairy Tales – Cecil W. JacksonFinancial Shenanigans – Howard SchilitCalled To Account – Paul M. ClikemanThe Financial Numbers Game - Charles Mulford
Corporate Crooks - Greg Farrell
Extraordinary Circumstances - Cynthia Cooper
Stolen Without a Gun – Walter Pavlo, Jr.
No One Would Listen – Harry Markopolos
Conspiracy of Fools - Kurt Eichenwald
Smartest Guys in the Room –Bethany McLean, Peter Elkind
The Informant - Kurt Eichenwald
Snakes in Suits – Paul Babiak and Robert Hare
HealthSouth: The Wagon to Disaster – Aaron Beam
IRS Criminal Investigation – Adrian Project
Greg Farrell Lecture
Aaron Beam LectureFormer CFO at HealthSouth
Fraud Examination - W. Steve Albrecht et al
Principles of Fraud Examination – Joe Wells
Forensic Accounting and Fraud Examination – Kranacher, Riley and Wells
Forensic and Investigative Accounting –Crumbley and Heitger
Forensic Accounting – Hopwood, Young, Leiner
Custom Publishing
Customized case book used in conjunction with standard text ◦ Revenue Recognition◦ Matching◦ Capitalization vs. Expense
Short PowerPoint illustrating an element of a fraud – “What difference does it make ?”◦ Ex. Waste Management – Capitalization vs. expense;
extension of lives
Article Summaries/Short Presentations by students – local, WSJ,etc.
Career night using fraud skits and videos Catch Me If You Can scenarios
Speakers ◦ local ACFE chapter
◦ Advisory Board members with experience
◦ shared event with local organization such as IIA
Videos◦ American Greed – watch on Hulu.com and
summarize/prepare discussion questions
◦ Frontline, etc.
◦ YouTube
What’s Your Fraud IQ? quiz
Cases◦ Quality of Earnings and Estimates – Issues in Accounting
Education November 2002 ◦ Business Ethics Cases – Grey Matters◦ Adapt a case from Contemporary Auditing: Real Issues
and Cases Ex. Livent
Research Assignments◦ Prepare a timeline for a major fraud ◦ Analyze the major accounting issues involved in a fraud
such as Adelphia or WorldCom◦ Create a short presentation to share around an
accounting transaction or series of transactions showing the financial statement impact
◦ Look at the role derivative instruments and fair value played in the financial crisis
Interviews/SpeakersInterview local attorney or CFE
Attend local presentation on a fraud topic
Panel discussion on ethics in accounting practice
Other AssignmentsInternal control observation and critique
Ratio analysis looking for red flags and anomalies
Fraud potential with IFRS
Review footnoted.com for disclosure issues
Read and summarize a recent SEC AAER
Cases◦ Trueblood –mergers and acquisitions, SPEs and VIEs◦ Adapt a case from Contemporary Auditing: Real
Issues and Cases ◦ Harvard Cases ◦ Goldman, other current cases
Articles◦ Track local fraud stories in the government and/or
nonprofit sector for a period of time and summarize findings
◦ Read and summarize recent SEC AAER related to merger, acquisition or IPO
Research Assignments◦ Fraud in mergers and acquisitions – analyze a
specific instance Ex. Adelphia◦ Fraud in government – read and summarize a fraud
in this environment Ex. Roslyn School District ◦ Fraud in nonprofit organizations Red flags unique to nonprofits
Search Guidestar for potential fraudulent nonprofits
Create a fraud prevention checklist or best practices document
Role of fair value in mergers and acquisitions
Update on fraud in the financial services industry
Cases◦ Apollo Shoes
◦ Contemporary Auditing: Real Issues and Cases
◦ Auditing After Sarbanes-Oxley – Jay Thibodeau and Deborah Freier
◦ The Performer’s Case
◦ Caseplace.org
Websites◦ Review two websites belonging to former fraudsters
◦ Download the 2010 Report to the Nation from ACFE website and answer discussion questions
Research ◦ Summarize SAS 99 and its impact on the traditional
financial statement audit◦ Compare fraud surveys/studies by KPMG, ACFE, and E&Y◦ Auditor’s changing role with respect to fraud risk in a
traditional audit◦ Compare three to five major fraud cases from the
standpoint of what happened to the auditorsVideos◦ Cooking the Books – ACFE – Crazy Eddie◦ Financial Statement Fraud – ACFE – ZZZZBest◦ Deloitte Forensic Center – Review/summarize one video
from the site
Videos (con.)◦ Innovation in Accounting Education – Internal
Control Video – Snyder and Clifton◦ Something’s Fishy at Jones Company – Martin Coe,
Jeffrey Coussens, John Delaney – Interviewing Skills
Other◦ Book review – reading list◦ Speaker on fraud risk or experience with finding
fraud ◦ Internal control review – small business or nonprofit ◦ Compile a list of references and resources ◦ Summarize new COSO documents
Projects using IDEA or ACL – data mining◦ Benford’s Law Application
◦ Basic Data Search – contrast with Excel
◦ Pattern Identification
Public Records Search
Background Investigation –Business
Cases◦ Issues in Accounting Education
May, 2003 Edition Tallahassee Bean Counters
May, 2010 Edition – Return of the TBC
◦ Adelphia Fraud Case
◦ HBR case – WorldCom
◦ Auditing After Sarbanes-Oxley – Jay Thibodeau and Deborah Freier
◦ The Performer’s Case
◦ Something’s Fishy at Jones Company – Fraud magazine
ACFE ◦ Student Membership - $25 – Includes CD of Fraud
Examiners’ Manual
◦ 2010 Report to the Nation – compare with past years noting trends
◦ Article reviews
◦ Current events
◦ Seminars/Local Chapter Participation
Activities◦ Fraudster of the Week
◦ Fraud Trivia
◦ Track fraud in local media for period of time –complete a “fraud profile” for each one – summarize
◦ Fraud “scrapbook”
◦ Book reviews and discussion from reading list
◦ Service learning – conduct fraud vulnerability checkups for small businesses or nonprofits
◦ Public records search
◦ “Investigate” someone on the Internet
Activities(con.)◦ Preparation of Expert Witness Report
◦ Critique of Expert Witness Report
◦ Mock Trial
◦ Financial Statement Analysis Identifying Red Flags
◦ Adrian Jr. or Adrian Project
◦ Campus Seminar on Identity Theft
◦ Social Networking Do’s and Don’ts
◦ Local Conferences, Programs, Speakers
◦ Movie and Video Reviews
Introduction of fraud early on captures students’ interest
Makes accounting more relevant
Provides a context to increase understanding of importance of knowing the “right” way to record transactions
Increases critical thinking skills
FCPA issues as companies continue to increase global footprint
Money laundering and terrorism
Transparency International
IFRS
Technology as facilitator
