Competency
In this project, you will demonstrate your mastery of the following competencies:
- Analyze the behavior of individuals who commit fraud
- Assess the legal requirements and ethical responsibilities of fraud investigators
Scenario
You are a forensic accountant and have been assigned to be the head of the interview team at a high-level forensics firm, McKinley and Chavez. A new client, Sweet Tonics Sports Bar and Grill, has hired you through your firm to lead an investigation and be an expert witness. You will be responsible for creating a fraud report that outlines and determines the fraud scheme; the report will then be submitted in court and disclosed to all parties involved in the case.
Directions
For this project, you will use the resource in the Supporting Materials section along with your prior knowledge to create a fraud report. You will also submit your completed spreadsheet showing your calculations.
Specifically, you must address the following rubric criteria:
- Use the fraud triangle to determine background information about fraudsters.
- Create a profile about the potential fraudster in this specific case.
- Explain the most important behavioral indicators in the profile.
- Conduct a behavioral analysis to determine the likelihood of the individual’s fraudulent behavior.
- Perform a financial analysis to prove the occurrence of fraud in this specific case. (For your response, complete the Excel spreadsheet found in the Supporting Materials.)
- Assess the rationale of Rule 26 in collecting and sharing evidence during this specific case
- Explain the impact of Rule 26 on legal compliance during this specific case.
- Explain circumstances that result in privileged information in this specific case.
- Determine the ethical standards that should be followed in this fraud investigation.
- Justify the necessity of ACFE and AICPA guidelines in the role of the fraud investigator.
What to Submit
To complete this project, you must submit the following:
Fraud Report
Your submission should include a 6- to 8-page Word document with 12-point Times New Roman font, double spacing, and one-inch margins. Sources should be cited according to APA style.
Excel Spreadsheet
Your submission should include the completed McKinley and Chavez Case Study Spreadsheet showing the calculations for the trend analysis, vertical analysis, and net worth analysis.
Supporting Materials
The following resource supports your work on the project:
Resource: McKinley and Chavez Case Study Docket This document will clarify the background, the characters, and other information needed to complete the fraud report.
Project Two Rubric
| Criteria | Exemplary (100%) | Proficient (90%) | Needs Improvement (70%) | Not Evident (0%) | Value |
|---|---|---|---|---|---|
| Background Information | Exceeds proficiency in an exceptionally clear, insightful, or sophisticated manner | Uses the fraud triangle to determine background information about fraudsters | Shows progress toward proficiency, but with errors or omissions; areas for improvement may include adding details related to using the fraud triangle to determine background information about fraudsters | Does not attempt criterion | 9 |
| Profile | Exceeds proficiency in an exceptionally clear, insightful, or sophisticated manner | Creates a profile about the potential fraudster in this specific case | Shows progress toward proficiency, but with errors or omissions; areas for improvement may include adding details related to creating a profile about the potential fraudster in this specific case | Does not attempt criterion | 9 |
| Indicators | Exceeds proficiency in an exceptionally clear, insightful, or sophisticated manner | Explains the most important behavioral indicators in the profile | Shows progress toward proficiency, but with errors or omissions; areas for improvement may include adding details related to explaining the most important behavioral indicators in the profile | Does not attempt criterion | 9 |
| Behavioral Analysis | Exceeds proficiency in an exceptionally clear, insightful, or sophisticated manner | Conducts a behavioral analysis to determine the likelihood of the individual’s fraudulent behavior | Shows progress toward proficiency, but with errors or omissions; areas for improvement may include adding details related to conducting a behavioral analysis to determine the likelihood of the individual’s fraudulent behavior | Does not attempt criterion | 9 |
| Financial Analysis | Performs a financial analysis to prove the occurrence of fraud in this specific case with no errors | Performs a financial analysis to prove the occurrence of fraud in this specific case with minimal errors | Performs a financial analysis to prove the occurrence of fraud in this specific case with significant errors | Does not attempt criterion | 9 |
| Rule 26 | Exceeds proficiency in an exceptionally clear, insightful, or sophisticated manner | Assesses the rationale of Rule 26 in collecting and sharing evidence during this specific case | Shows progress toward proficiency, but with errors or omissions; areas for improvement may include adding details related to assessing the rationale of Rule 26 in collecting and sharing evidence during this specific case | Does not attempt criterion | 9 |
| Legal Compliance | Exceeds proficiency in an exceptionally clear, insightful, or sophisticated manner | Explains the impact of Rule 26 on legal compliance during this specific case | Shows progress toward proficiency, but with errors or omissions; areas for improvement may include adding details related to explaining the impact of Rule 26 on legal compliance during this specific case | Does not attempt criterion | 9 |
| Privileged Information | Exceeds proficiency in an exceptionally clear, insightful, or sophisticated manner | Explains circumstances that result in privileged information in this specific case | hows progress toward proficiency, but with errors or omissions; areas for improvement may include adding details related to explaining circumstances that result in privileged information in this specific case | Does not attempt criterion | 9 |
| Ethical Standards | Exceeds proficiency in an exceptionally clear, insightful, or sophisticated manner | Determines the ethical standards that should be followed in this fraud investigation | Shows progress toward proficiency, but with errors or omissions; areas for improvement may include adding details related to determining the ethical standards that should be followed in this fraud investigation | Does not attempt criterion | 9 |
| ACFE and AICPA Guidelines | Exceeds proficiency in an exceptionally clear, insightful, or sophisticated manner | Justifies the necessity of ACFE and AICPA guidelines in the role of the fraud investigator | Shows progress toward proficiency, but with errors or omissions; areas for improvement may include adding details related to justifying the necessity of ACFE and AICPA guidelines in the role of the fraud investigator | Does not attempt criterion | 9 |
| Clear Communication | Exceeds proficiency with an intentional use of language that promotes a thorough understanding | Consistently and effectively communicates in an organized way to a specific audience | Shows progress towards proficiency, but communication is inconsistent or ineffective in a way that negatively impacts understanding | Shows no evidence of consistent, effective, or organized communication | 5 |
| Citations and Attributions | Uses citations for ideas requiring attribution, with few or no minor errors | Uses citations for ideas requiring attribution, with consistent minor errors | Uses citations for ideas requiring attribution, with major errors | Does not use citations for ideas requiring attribution | 5 |
| Total: | 100% |