Students

ACCG2067 – Foundations of Forensic and Data Analytics

2023 – Session 1, In person-scheduled-weekday, North Ryde

General Information

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Unit convenor and teaching staff Unit convenor and teaching staff
Batul Towfique Hasan
batul.hasan@mq.edu.au
Nuraddeen Nuhu
nuraddeen.nuhu@mq.edu.au
Credit points Credit points
10
Prerequisites Prerequisites
50cp at 1000 level or above
Corequisites Corequisites
Co-badged status Co-badged status
Unit description Unit description

This unit introduces students to the practice and procedures of forensic accounting and the important role played by the forensic accountant in the legal and business environment. Students will be exposed to the theory and principles of application, of data analytics skills and techniques in relation to fraud detection, fraud and risk exposures, dispute resolution, cyber and financial crimes and legal obligations and processes. The unit aims to develop in students an appreciation of how the application of forensic and data analytics skills and strategies are essential to the role of the forensic accountant as an expert witness and professional advisor.

Important Academic Dates

Information about important academic dates including deadlines for withdrawing from units are available at https://www.mq.edu.au/study/calendar-of-dates

Learning Outcomes

On successful completion of this unit, you will be able to:

  • ULO1: Understand the role of forensic accounting and its relationship to the legal system, including the legal, ethical and professional obligations of forensic accountants.
  • ULO2: Identify indicators of fraudulent activity and develop awareness of investigative procedures, including an appreciation of the role of evidence in the litigation process.
  • ULO3: Develop awareness of issues and key principles of professional digital forensic practice, including chain of custody and best practice procedures.
  • ULO4: Understand the theory, and principles of application, of data analytics skills and techniques to forensic accounting.
  • ULO5: Recognise mechanisms to uncover or recover evidence from digital devices to support litigation and investigations.

General Assessment Information

Unless a Special Consideration request has been submitted and approved, a 5% penalty (of the total possible mark) will be applied each day a written assessment is not submitted, up until the 7th day (including weekends). After the 7th day, a grade of ‘0’ will be awarded even if the assessment is submitted. The above penalties do not apply to class assessments assigned for 'Assessed Coursework', which will receive a grade of '0' unless submitted in the assigned class.

  

For any late submissions of time-sensitive tasks, such as scheduled tests/exams, performance assessments/presentations, and/or scheduled practical assessments/labs, students need to submit an application for Special Consideration. 

Assessment Tasks

Name Weighting Hurdle Due
Class Test 25% No Week 7
Group Assignment 45% No Week 13
Assessed Coursework 30% No Week 3, Week 4, Week 5, Week 9, Week 10, Week 11, Week 12

Class Test

Assessment Type 1: Quiz/Test
Indicative Time on Task 2: 10 hours
Due: Week 7
Weighting: 25%

The purpose of the diagnostic test is to provide students with feedback on their knowledge and application of the material using a formative assessment task early in the session. The test will be marked based on the appropriate application of knowledge and skills to short answer and case based questions.
On successful completion you will be able to:
  • Understand the role of forensic accounting and its relationship to the legal system, including the legal, ethical and professional obligations of forensic accountants.
  • Identify indicators of fraudulent activity and develop awareness of investigative procedures, including an appreciation of the role of evidence in the litigation process.
  • Understand the theory, and principles of application, of data analytics skills and techniques to forensic accounting.

Group Assignment

Assessment Type 1: Report
Indicative Time on Task 2: 25 hours
Due: Week 13
Weighting: 45%

Students are required to complete a group report assignment consisting of individual and group components. Details regarding the nature of the assignment and its requirements will be made available on iLearn early in the session. The properties on which the assessment task is will be assessed are as follows:

Application of knowledge and skills Quality of reasoning and appropriate application of data analytic techniques Quality of communication and presentation of assignment

The Unit Assessment Guide provides standards and a grading rubric for this assessment task.
On successful completion you will be able to:
  • Understand the role of forensic accounting and its relationship to the legal system, including the legal, ethical and professional obligations of forensic accountants.
  • Identify indicators of fraudulent activity and develop awareness of investigative procedures, including an appreciation of the role of evidence in the litigation process.
  • Develop awareness of issues and key principles of professional digital forensic practice, including chain of custody and best practice procedures.
  • Understand the theory, and principles of application, of data analytics skills and techniques to forensic accounting.
  • Recognise mechanisms to uncover or recover evidence from digital devices to support litigation and investigations.

Assessed Coursework

Assessment Type 1: Participatory task
Indicative Time on Task 2: 14 hours
Due: Week 3, Week 4, Week 5, Week 9, Week 10, Week 11, Week 12
Weighting: 30%

Students are required to complete regular assessed coursework activities consisting of seven homework submissions. Details on homework questions coverage will be provided in the Unit Weekly Guide available on iLearn. Homework submissions activities are designed to encourage students to actively engage with the Unit material and to provide students with timely feedback on their performance throughout the session. Homework submissions will be marked on the basis of original effort. The marking criteria to be applied to homework submissions is provided in the Unit Assessment Guide available on iLearn. Each homework submission is equally weighted and the best 5 of 7 homework submissions will count towards your homework submission marks.
On successful completion you will be able to:
  • Understand the role of forensic accounting and its relationship to the legal system, including the legal, ethical and professional obligations of forensic accountants.
  • Identify indicators of fraudulent activity and develop awareness of investigative procedures, including an appreciation of the role of evidence in the litigation process.
  • Develop awareness of issues and key principles of professional digital forensic practice, including chain of custody and best practice procedures.
  • Recognise mechanisms to uncover or recover evidence from digital devices to support litigation and investigations.

1 If you need help with your assignment, please contact:

  • the academic teaching staff in your unit for guidance in understanding or completing this type of assessment
  • the Writing Centre for academic skills support.

2 Indicative time-on-task is an estimate of the time required for completion of the assessment task and is subject to individual variation

Delivery and Resources

Please refer to the information on iLearn.

Unit Schedule

Week

Learning Objective

Content

Reading

1

LO2: Identify indicators of fraudulent activity and develop awareness of investigative procedures, including an appreciation of the role of evidence in the litigation process

Introduction to Fraud

 

Types of Fraud

 

The Need for Analysis Tools

 

 

 

 

Forensic Accounting and Fraud Investigation for Non-Experts, H. Silverstone and M. Sheetz, Chapter 2, Fraud in Society

 

Forensic Accounting and Fraud Investigation for Non-Experts, H. Silverstone and M. Sheetz, Chapter 12, Analysis Tools for Investigators

 

 

2

LO2: Identify indicators of fraudulent activity and develop awareness of investigative procedures, including an appreciation of the role of evidence in the litigation process

Fraud Theories

 

Introduction to Financial

Analysis

 

Key Ratios

 

Data Mining as an Analysis Tool

Fraud theories & White-collar crimes

https://researchleap.com/fraud-theories-white-collar-crimes-lessons-nigerian-banking-industry/

 

Forensic Accounting and Fraud Investigation for Non-Experts, H. Silverstone and M. Sheetz, Chapter 5 Fundamental Principles of Financial Analysis

3

LO1: Understand the role of forensic accounting and its relationship to the legal system, including the legal, ethical and professional obligations of

forensic accountants

Overview of the Australian Legal System

 

How Law is Made

 

What the Law Deals With Government in Australia

 

The Legislature

 

The Executive

 

The Judiciary

 

The Legal Profession

 

Hearsay Opinion

 

Standard of Proof

 

Specialised Knowledge

 

Fields of Expertise

 

Expert Evidence and Hearsay

 

Certificates of Expert Evidence

Australian legal system [online]. HOT TOPICS, No. 79, 2011: 1-28

 

Evidence Act 1995 (Cth) extracts:

• Part 3.2 Hearsay: s. 59, s.  

     60, s. 63, s. 64, s.

  69, s. 71

• Part 3.3 Opinion: s. 76, s.   

      78, s. 79

  • Part 4.1 Standard of Proof: s. 140, s. 141

 

 

4

LO1: Understand the role of forensic accounting and its relationship to the legal system, including the legal, ethical and professional obligations of

forensic accountants

The Role of The Expert

 

Existence of Formal Qualifications

 

Australia’s Uniform Evidence Legislation

 

The Opinion Rule

 

The Admissibility Regime

 

Duties and Responsibilities

 

The Expert’s Testimony

 

Rules of Evidence

 

Expert Witness Code of Conduct

Expert evidence. (n.d.), Chapter 2 - Common Law Evidentiary Rules (selected sections only)

 

Expert evidence. (n.d.), Chapter 3 - Statutory Evidentiary Rules (selected sections only)

 

R. Hoffman, W. Finney, Ph. Cox & K, Cooper, The Accountant as an Expert Witness: A basic guide to forensic accounting - Chapter 2: Overview - the legal framework (CCH Australia Limited, 2007)

 

Schedule 7 – Expert Witness Code of Conduct Uniform Civil Procedure Rules 2005 (NSW)

5

LO2: Identify indicators of fraudulent activity and develop awareness of investigative procedures, including an appreciation of the role of evidence in the litigation process

APES 215

 

Investigations: planning the scope and structure

 

Case management

 

Reporting the findings

 

Closing the investigation

 

APES215

 

Forensic Accounting, R. Rufus and others, Chapter 7 Conducting a Fraud Investigation

 

Corruption in Focus, Crime and Corruption Commission, Chapter 6 Planning an investigation (2016)

 

6

LO3: Develop awareness of issues and key principles of professional digital forensic practice, including chain of custody and best practice procedures

Critical Steps in Gathering Evidence

 

Chain of Custody

 

Evidence Created

 

Introduction to Digital Forensics

 

A Guide to Forensic Accounting Investigation,

W. Kenyon and P. D. Tilton, Chapter 10, Building a Case: Gathering and Documenting

Evidence

 

Essentials of Forensic Accounting, M. A. Crain

and others, Chapter 11, Digital Forensics

7

LO4: Understand the theory, and principles of application, of data analytics skills and techniques to forensic accounting

Payroll Fraud

 

Fraud Risk Structure

 

Data Analysis

 

Data mining planning

 

The Fraud Audit: Responding to the Risk of Fraud in Core Business Systems, L. W. Vona, Chapter 12, Payroll Fraud

8

LO4: Understand the theory, and principles of application, of data analytics skills and techniques to forensic accounting

Revenue Misstatement

 

Inventory fraud

 

Fraud risk structure

 

Data analysis

 

Data mining planning

 

The Fraud Audit: Responding to the Risk of Fraud in Core Business Systems, L. W. Vona, Chapter 13, Revenue Misstatement

 

The Fraud Audit: Responding to the Risk of Fraud in Core Business Systems, L. W. Vona, Chapter 14, Inventory Fraud

9

LO4: Understand the theory, and principles of application, of data analytics skills and techniques to forensic accounting

Fraud Risk Structure

 

Disbursement Fraud

 

Data Analysis

 

Data mining planning

 

The Fraud Audit: Responding to the Risk of Fraud in Core Business Systems, L. W. Vona, Chapter 10, Disbursement Fraud

10

LO3: Develop awareness of issues and key principles of professional digital forensic practice, including chain of custody and best practice procedures

Computers

 

Forensic IT

 

Digital forensics lab

 

Software used by Forensic IT

 

Conducting computer forensics investigation

PricewaterhouseCoopers, Electronic evidence - What if there’s no paper trail? (2008)

 

J. Brozovsky and J. Luo, Digital forensics: a new challenge for accounting professionals (Strategic Finance, 2013)

 

R. Kardell, Analysis of digital financial data (FBI Law Enforcement Bulletin, 2011)

 

 

 

11

LO5: Recognise mechanisms to uncover or recover evidence from digital devices to support litigation and investigations.

Scientific Method and

Digital Forensics

 

Digital

Forensic Analysis

 

Data Gathering

And Observation

 

Conclusions and Reporting

Handbook of Digital Forensics and Investigation, E. Casey, Chapter 2, Forensic

Analysis

12

LO5: Recognise mechanisms to uncover or recover evidence from digital devices to support litigation and investigations.

Introduction to electronic discovery

 

Case management

 

Identification of electronic data

 

Forensic Preservation of data

 

Data Processing

 

Production of Electronic Data

Handbook of Digital Forensics and Investigation, E. Casey, Chapter 3, Electronic

Discovery

13

LO2: Identify indicators of fraudulent activity and develop awareness of investigative procedures, including an appreciation of the role of evidence in the litigation process

Fraud Detection

 

Interpreting Potential Red Flags

 

Professional Scepticism

 

Risk Factors

 

 

Financial Investigation and Forensic Accounting, G. A. Manning, Chapter 24, Audit Programs

 

A Guide to Forensic Accounting Investigation, W. Kenyon and P. D. Tilton, Chapter 13, Potential Red Flags and Fraud Detection Techniques

 

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Unit information based on version 2023.02 of the Handbook