Professional Documents
Culture Documents
Part 1
[2016/2017] 1st Semester
Tunku Puteri Intan Safinaz School of Accountancy,
College of Business, Universiti Utara Malaysia
Dr. Oluwatoyin Muse Johnson Popoola, PhD, MBA,
FCTI, FCA, CFA,RPA
Coordinator & Lecturer: A161 BKAB 3013 Forensic
Accounting
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Topics to Be Covered
Milestone 1
Definition
and
taxonomy
of fraud
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Milestone 3
Nature of
Milestone 2
fraud
Importance
of forensic
accounting
Milestone 4
Tutorial
What is Forensic?
The term forensic is defined as
used in or suitable to courts of law or
public debate.
Source: Nolan, J. R., Nolan-Haley, J.
M., Connolly, M. J., Hicks, S. C., &
Alibrandi, M. N. (1990). Black Law
Dictionary 6th Edition.
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Expert accountant
Forensic accountant
Fraud auditor
Fraud investigator
Fraud examiner
Risk control manager
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12
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Source:
Popoola et al.(2016);
Albrecht et al. (2012,
p. 16); DiGabriele
(2008)
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What is Fraud?
Fraud is a generic term, and embraces all the
multifarious means which human ingenuity
can devise, which are resorted to by one
individual, to get an advantage over another
by false representations. No definite and
invariable rule can be laid down as a general
proposition in defining fraud, as it includes
surprise, trickery, cunning and unfair ways by
which another is cheated. The only
boundaries defining it are those which limit
human knavery.
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Elements of Fraud
A representation
About a material point
Which is false
And intentionally or recklessly so,
Which is believed
And acted upon by the victim
To the victims damage
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Classifications of Fraud
There are three classifications of fraud:
Class of Fraud by Scheme
Occupation fraud (ACFE) e.g. Employee
Embezzlement (direct and indirect fraud)
Class of Fraud by Perpetrators
Fraud committed against organisation (employee
fraud victim is the employees organisation)
Fraud committed on behalf of organisations
(management fraud or financial statement fraud by
nature of perpetrators and method of deception)
Class of Fraud by Victims
Employer, organization, shareholders, investors,
government, etc.
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Types of Fraud
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Source:
Albrecht et al. (2012, p. 10)
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Purpose
Criminal Case
To fight a wrong
Consequen
ces
Burden of
Proof
Beyond a
reasonable
doubt
Jury must have
12 people
Jury
Initiation
Verdict
Civil Case
To obtain a
remedy
Restitution and
damage
payments
Preponderance
of evidence
May consist of
fewer than 12
persons
Determination by Filing of a claim
a grand jury that by a plaintif
sufficient
evidence exists
to indict
Unanimous
Parties may
verdict
stipulate to a less
15)
than unanimous
verdict
Only one claim at Various claims
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Summary
Discuss topics covered in Part 1
Forensic, Forensic Accounting,
Fraud, Criminality and Civility.
Taxonomy of Frauds , 2015
(transmitted to your portal)
Reiterate welcome
Wrap-up
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End of Class
Should you require further clarifications,
please feel free to see me on
CONSULTATION DAYS at TISSA-UUM
Room 3.58, 04289 7303; or
Email: popoola@uum.edu.my; or
WhatsApp 016 435 4874.
Thank you. Terima Kasih.
Dr. Oluwatoyin Muse Johnson Popoola,
PhD, MBA, CFA, FCTI, FCA, RPA
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