Forensic Accounting
- Credits: 4
- Ending: Examination
- Range: 2P + 2C
- Semester: winter
- Year: 1
- Faculty of Business Economics with seat in Košice
Teachers
Included in study programs
Teaching results
The aim of the course is to provide students with a basis for understanding the role of forensic accounting in economic decision-making, financial reporting, and investigative processes. Within the course, students will gain basic information in the areas of identification, analysis, and qualification of misleading trends in accounting. The course will offer knowledge to understand the various possibilities of unethical use of accounting for various reasons and motives. In addition, the course combines traditional (legal) and misleading accounting procedures, presents schemes of misleading procedures, their manifestations in the financial statements and, in connection with that, the process of investigating suspicious practices with the introduction of analytical methods and procedures. The subject shapes the ethical perception of students and the responsibility for the precise implementation of the practice of economist - accountant.
Knowledge:
• to know the basic categories of forensic accounting with the creation of preconditions for their possible subsequent more detailed development within a deeper study of forensic disciplines,
• to understand the interrelationships of the elements of the context of misleading in accounting,
• to know the nature of fraud and the possibilities of their prevention,
• to be familiar with the usual schemes of misleading accounting practices that affect the financial statements,
• to understand the principles and basic forensic accounting analysis,
• to understand the basic investigative procedures in forensic accounting,
• to master ethical principles in resolving ethical conflicts.
Skills:
• to analyze the basic context in forensic accounting,
• to analyze the financial statements in order to identify misleading practices,
• to identify potentially fraudulent situations,
• to evaluate critically the causes, circumstances and consequences of questionable accounting procedures,
• to apply basic concepts of forensic accounting in practice,
• to develop curiosity in detecting unusual phenomena and their causes,
• to examine details in accounting,
• to apply ethical approaches in the practice of accounting professionals.
Competences:
• the ability to make decisions and think critically about ethical dilemmas in accounting,
• to implement teamwork in managing the challenges related to forensic accounting methods and processes,
• the ability to achieve personal integrity in distinguishing between acceptable and unacceptable accounting practices.
Indicative content
Lectures:
1. The essence of forensic accounting. History and reasons.
2. Creativity and fraud in financial reporting.
3. Accounting data distortion practices.
4. Anatomy of misleading accounting procedures – assets, liabilities.
5. Anatomy of misleading accounting procedures – costs, revenues.
6. Financial statements – red flags.
7. Quantitative methods of data distortion detection.
8. Qualitative methods of data distortion detection.
9. The process of investigating the misleading in accounting.
10. Methods and techniques of investigating the misleading in accounting.
11. Economic, legal and psychological aspects of fraud. The triangle of fraud - opportunity, motivation, rationalization.
12. Prevention of fraudulent conduct in financial reporting. Accounting ethics.
13. Economic impacts of fraudulent conduct in financial reporting – an expert's view from practice.
Seminars:
1. Introductory seminar. Course syllabus, requirements for meeting the conditions of the active form of teaching. Summary of basic accounting knowledge.
2. Accounting scandals – discussion.
3. Financial statements – analysis of financial statements.
4. Manipulation of accounting data – selected accounting procedures – assets, liabilities.
5. Manipulation of accounting data – selected accounting procedures – costs, revenues.
6. Evaluation of financial statements – case studies. Partial written test.
7. Quantitative methods of data distortion detection – case study.
8. Qualitative methods of data distortion detection – case study.
9. The process of investigating the misleading in accounting – model situations.
10. Application of methods and techniques of investigation of the misleading in accounting.
11. Testing the quality of financial statements.
12. The current situation in the economic environment as an opportunity to use misleading practices in accounting. Partial written test.
13. Effective control system in companies – discussion.
Support literature
Elementary literature:
1. CRUMBLEY, D. L. et al. Forensic and Investigative Accounting. 9th Edition. CCH Inc., 2019. 872 p. ISBN 978-08-0805-322-4.
2. DRÁBKOVÁ, Z. Riziko účetních chyb a podvodů ve světle kreativního účetnictví. Nástroje efektivního řízení a hodnocení rizik v účetnictví. Praha : Wolters Kluwer, 2020. 148 s. ISBN 978-80-7598-312-1.
Supplementary literature:
3. CRAIN, M. A. et al. Essentials of Forensic Accounting. 2nd Edition. John Wiley and Sons, 2019. 640 s. ISBN 978-1-94830-644-7.
4. DUŠEK, J. Vyhněte sa chybám v účetnictví. Rady, řešení, praktické příklady. Praha : Grada, 2014. 128 s. ISBN 978-80-247-9464-8.
5. TUMPACH, M. Forenzné účtovníctvo : využitie CAATT pri odhaľovaní ekonomickej kriminality. Bratislava : Ekonóm, 2013. 145 s. ISBN 978-80-225-3579-3.
6. VOLKÁNOVÁ, Z. Podvody v účetnictví firem. Jak se jim bránit. Praha : Linde, 2014. 192 s. ISBN 978-80-7201-945-8.
7. Current scientific and professional articles dealing with current problems in forensic accounting.
Syllabus
Lectures: 1. The essence of forensic accounting. History and reasons. 2. Creativity and fraud in financial reporting. 3. Accounting data distortion practices. 4. Anatomy of misleading accounting procedures – assets, liabilities. 5. Anatomy of misleading accounting procedures – costs, revenues. 6. Financial statements – red flags. 7. Quantitative methods of data distortion detection. 8. Qualitative methods of data distortion detection. 9. The process of investigating the misleading in accounting. 10. Methods and techniques of investigating the misleading in accounting. 11. Economic, legal and psychological aspects of fraud. The triangle of fraud - opportunity, motivation, rationalization. 12. Prevention of fraudulent conduct in financial reporting. Accounting ethics. 13. Economic impacts of fraudulent conduct in financial reporting – an expert's view from practice. Seminars: 1. Introductory seminar. Course syllabus, requirements for meeting the conditions of the active form of teaching. Summary of basic accounting knowledge. 2. Accounting scandals – discussion. 3. Financial statements – analysis of financial statements. 4. Manipulation of accounting data – selected accounting procedures – assets, liabilities. 5. Manipulation of accounting data – selected accounting procedures – costs, revenues. 6. Evaluation of financial statements – case studies. Partial written test. 7. Quantitative methods of data distortion detection – case study. 8. Qualitative methods of data distortion detection – case study. 9. The process of investigating the misleading in accounting – model situations. 10. Application of methods and techniques of investigation of the misleading in accounting. 11. Testing the quality of financial statements. 12. The current situation in the economic environment as an opportunity to use misleading practices in accounting. Partial written test. 13. Effective control system in companies – discussion.
Requirements to complete the course
active participation in seminars in groups, partial written tests
written exam
Continuous assessment 40 %:
• active participation in seminars in groups – 10 %
• partial written tests – 30 %
Final assessment:
• written exam – 60 %
Student workload
• participation in lectures – 26 hrs.
• participation in seminars – 26 hrs.
• preparation for seminars – 7 hrs.
• preparation for partial written tests – 15 hrs.
• preparation for written exam – 30 hrs.
Total: 104 hrs.
Language whose command is required to complete the course
Slovak
Date of approval: 15.02.2023
Date of the latest change: 05.04.2024