Nanyang Technological University

Nanyang Business School

Nanyang Business School - Undergraduate Programmes

Course Description

AB9102 Forensic Accounting and Fraud Investigation

Acad Unit: 3
Pre-requisite: AC1102 (Acc) or AD1101 (Bus)

Course Description:

This course involves students in in-depth examination and discussion of the 5 key areas in forensic accounting and fraud investigation as follows:

A.         Uncovering white collar crimes especially in the areas of accounting and financial fraud:

1.         Fraudulent Financial Reporting: financial statement fraud schemes, ways in which financial statements are manipulated with fraudulent intent and financial fraud risk actors.

2.         Detecting Fraud in Financial Reporting: roles and procedures associated with internal and external auditors, the audit committee, board of directors, management and the forensic accountant.

3.         Employee Fraud: embezzlement, cash and check schemes, accounts receivable fraud, inventory fraud, accounts payable fraud, fictitious disbursements.

4.         Fraud and Company’s Risk Assessment: tools and techniques to assess risk of fraud in a company: including timeline (event/project management) and link analysis, invigilation and proof of cash. Fraud prevention, detection, and mitigation measures.

5.         Indirect Methods of Reconstructing Income: market segment specialization program, source and application of funds method, net worth method, bank deposit method.


B.        Litigation Support

1.         Commercial Damages: the legal framework of damages; various damage calculation approaches; cost behaviour assumptions and the time value of money.

2.         Litigation Support in Special Situations: the accountant’s role in antitrust litigation – estimation of cost behaviour patterns, including techniques such as regression/correlation analysis.

3.         Computing Economic Damages Overview: differences between measuring commercial damages and measuring personal injury damages; how to measure damages for personal injury and wrongful death cases – economic components and discounting amounts to the present value.


C.        Cybercrime

1.         Investigation of digital data: a brief introduction to computer forensics and forensic techniques. Exploring the preservation of digital evidence, data mining concepts and strategies.

2.         Digital Forensic Analysis: using forensic audit, internet protocols, finding and tracing IP

addresses, applying internet and social media to perform tracing.

3.         Cybercrime Management: legal issues – applying Singapore laws to fight cybercrimes.

4.         Cybercrime loss valuations: placing valuation on losses; identifying the types of tangible and intangible losses that can occur during a cyber-attack.


D.        Business Valuations

1.         Fundamentals: general types of valuations, fair market value, investment value, intrinsic value, size of ownership interest impact on value.


2.         The three common valuation approaches: Income Approach, Market Approach, Cost


3.         Business Valuation Reports: organization, mechanics, main sections of the report.


E.          Forensic Accounting and financial fraud cases sharing

1.         Declassified Singapore and international Case Study