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Graduate Course Proposal Form Submission Detail - ACG6244

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Current Status: SCNS Liaison Notified of Graduate Council Approval - 2016-03-29
Campus: St Petersburg
Submission Type: New
Course Change Information (for course changes only):
Comments: USFSP approved. TO USF Sys 3/21/16. To SCNS 3/29/16

  1. Department and Contact Information

    Tracking Number Date & Time Submitted
    5253 2015-08-20
    Department College Budget Account Number
    School of Accountancy BP 140200
    Contact Person Phone Email
    James Fellows 34587

  2. Course Information

    Prefix Number Full Title
    ACG 6244 Fraud and Financial Reporting

    Is the course title variable? N
    Is a permit required for registration? Y
    Are the credit hours variable? N
    Is this course repeatable? N
    If repeatable, how many times? 0

    Credit Hours Section Type Grading Option
    3 C - Class Lecture (Primarily) R - Regular
    Abbreviated Title (30 characters maximum)
    Fraud and Financial Reporting
    Course Online? Percentage Online
    C - Face-to-face (0% online) 0


    ACG 3113 and ACG 4642


    Course Description

    An examination of financial reporting fraud from the standpoint of a both a financial statement user and an accountant, exploring the the ways in which financial statement frauds are committed.

  3. Justification

    A. Please briefly explain why it is necessary and/or desirable to add this course.

    Replacing Selected Topics with Permanent number; already listed in program

    B. What is the need or demand for this course? (Indicate if this course is part of a required sequence in the major.) What other programs would this course service?

    Students entering a career in professional accounting critically need the skills to understand how accounting and financial fraud is done, as well as developing skills for analyzing financial statement fraud.

    C. Has this course been offered as Selected Topics/Experimental Topics course? If yes, how many times?

    Yes, 2 times

    D. What qualifications for training and/or experience are necessary to teach this course? (List minimum qualifications for the instructor.)

    Terminal Degree in Accounting or a Related Field

  4. Other Course Information

    A. Objectives

    • To provide a definition of financial reporting fraud and an understanding of how it is committed.

    • To recognize potential biases and errors in reasoning that could lead one to misrepresent financial information.

    • To identify the different pressures/motivations for different types of firms to commit fraud.

    • To reinforce and develop effective communication skills, both written and oral;

    • To develop skills in the collection and analysis of information for use in decision making;

    • To develop skills that will help you to look critically at information;

    • To develop a better sense of how accounting information is presented and the strengths and weaknesses inherent in these presentations;

    • To better develop your critical thinking and explanatory skills.

    B. Learning Outcomes

    At the end of this course the student should be able to:

    1) Discuss the various means by which financial reporting fraud is committed

    2) Identify and analyze the "red flags" of financial reporting fraud

    3) Analyze the motivational pressures for committing financial fraud

    4) Develop critical analytical skills for determining financial statement misrepresentations

    C. Major Topics

    1) Ethics

    2) Definition of Fraud

    3) Who Commits Fraud

    4) Corporate Governance

    5) Financial Statement Analysis

    6) Red Flags of Fraud

    7) Balance Sheet Manipulation

    8) Income Statement Manipulation

    9) Auditor Responsibilities for Detecting Fraud

    D. Textbooks

    Financial Reporting Fraud: A Practical Guide to Detection and Internal Control, latest edition, by Charles R. Lundelius Jr., CFF, CPA, ABV.

    E. Course Readings, Online Resources, and Other Purchases

    Chapters 1-13 in textbook, plus current articles and other readings related to financial accounting fraud.

    F. Student Expectations/Requirements and Grading Policy



    Homework assignments 200

    Class participation 100

    Financial statement analysis 150

    Comprehensive final exam 100

    Total points available 550

    Grades will be posted to Canvas as soon as grading has been completed. As grading involves reading your assignment, critiquing your answers, and providing you with individual written feedback, please allow two weeks for grading.

    G. Assignments, Exams and Tests


    May 11

    MODULE 1:


    Ethics Survey

    Review of SFAC No. 8

    Financial Statement Presentation

    May 18 MODULE 2:

    Earnings Quality

    What is Fraud?

    Management versus Manipulation

    The Fraud Triangle… or Diamond… or Scale

    Who Commits Fraud? Chapter 1: The Nature of Financial Reporting Fraud


    June 1 MODULE 3:

    Corporate Governance

    Judgment and Biases

    Ethical Blind Spots Chapter 8: Role of the Audit Committee


    June 8 MODULE 4:

    Motivations/Pressures (publicly traded firms)

    Pro Forma Earnings Chapter 2: Earnings Manipulation

    Chapter 3: Earnings Management

    June 15 Discuss Assignment (Pro Forma Earnings)

    MODULE 5:

    Motivations/Pressures (private firms)

    Analyzing Financial Statements (normalizing) Chapter 5: Special Issues for Closely Held Companies

    Pro Forma Earnings assignment

    June 22 Discuss Assignment (Hops, Part I)

    Normalizing Adjustments

    MODULE 6:

    Motivations/Pressures (NFP and government)

    Hops, Part I assignment

    Chapter 6: Not-for-Profits and Government Entities

    Chapter 9: Quantitative Predictors of Financial Statement Fraud

    June 29 Discuss Assignment (Hops, Part II)

    MODULE 7:

    Predictors and Red Flags of FS Fraud

    Balance Sheet Manipulations Hops, Part 2 assignment

    Chapter 10: Loss Contingencies and Asset Impairments

    Chapter 11: Manipulation of Acquisition Contingencies


    July 6 MODULE 8:

    Income Statement Manipulations

    Auditor Responsibility

    Can Auditors Really Find Fraud? Chapter 12: Cost and Debt Shifting

    Chapter 13: Recognizing Fictitious Revenues

    July 13 Discuss Assignment (FS Analysis) Financial Statement Analysis

    Final Exam

    H. Attendance Policy

    Students are required to attend the first class. Students who do not have an excused absence from the first class will be dropped from the roll.

    Attendance Policy for the Observance of Religious Days by Students: In accordance with Sections 1006.53 and 1001.74(10)(g) Florida Statutes and Board of Governors Regulation 6C-6.0115, the University of South Florida (University/USF) has established the following policy regarding religious observances: (

    Religious Observances: Students who anticipate the necessity of being absent from class due to the observance of a major religious holiday must provide notice of the date(s) to the instructor, in writing, by the second class meeting.

    In the event of an emergency, it may be necessary for USF to suspend normal operations. During this time, USF may opt to continue delivery of instruction through methods that include but are not limited to: CANVAS Elluminate, Skype, and email messaging and/or an alternate schedule. It’s the responsibility of the student to monitor CANVAS site for each class for course specific communication, and the main USF, College, and department websites, emails, and MoBull messages for important general information.

    Students with Disabilities: Please notify your instructor by the second class meeting if you have a learning disability or require special assistance with this course. Confidential personal and learning assistance counseling are made available to students through the Division of Student Affairs. Contact R. Barry McDowell, St. Petersburg Campus: TER 200 (727) 873-4940, ( for more information.

    I. Policy on Make-up Work

    Missed Exams/Graded Work Policy:

    If you miss an exam or other assignment, I will assign you a zero. If you have a legitimate excuse for missing the exam, such as illness or a death in the family, I will allow you to make up the assignment in a timely manner. The decision as to how a missed exam/assignment is handled is at my discretion based on the circumstances and timing. I will consider reasons for missing exams on a case-by-case basis. You must provide documentation of your excuse (e.g., doctor’s note). You will be unable to make up any work missed due to unexcused absences. YOU CANNOT MAKE UP CLASS PARTICIPATION.

    Honor System: Under the USF Honor System, each student is expected to observe complete honesty in all academic matters. Violation of the Honor System will be referred to the Honor Council. Note: The following are violations of the Honor Code: Copying another student’s homework, signing another student’s name on the attendance roster, copying another group’s disk or written work, using another student’s computer disk to print out your assignment, copying another student’s file onto your disk, and misrepresenting a reason for a missed exam. Plagiarism or cheating on course work or on examinations will result in penalties that may include a grade of “F” for the specific exam or course work and a grade of “F” or “FF” for the course. Any incident of academic dishonesty will be reported to the Dean of the College. Definitions and punishment guidelines for Plagiarism, Cheating, and Student Disruption of the Academic Process may be found in the USF Policy on Academic Dishonesty & Disruption of the Academic Process at:

    J. Program This Course Supports

    USFSP Master of Accountancy Program

  5. Course Concurrence Information

    USFSP MBA Program

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