645
Project 1 Fraud Examination Rubric
Top of Form
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Ranges |
90 – 100% |
80 – 89% |
79 – 0% |
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Criteria |
Exceeds Performance Expectations |
Meets Performance Expectations |
Does Not Meet Performance Expectations |
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Critical Thinking / Originality |
Always identifies the correct issue, collects and evaluates information, and applies logical, step-by-step decision-making processes to articulate clear, defensible ideas. Clear evidence of originality. Quoted content includes quotation marks and correct APA in-text citation including the page or paragraph number depending on the format of the source. Non-quoted content that needs to be cited provides correct APA in-text citation. The reference list includes cited sources only. There is no evidence of copying and pasting or other types of plagiarism. Indicates an exceptional understanding of the topic (connecting it with our readings or other sources). |
Usually identifies the correct issue, collects and evaluates information, and applies logical, step-by-step decision-making processes to articulate clear, defensible ideas. Clear evidence of originality. Quoted content includes quotation marks and an in-text citation that may contain errors or fail to include the page or paragraph number. Non-quoted content that needs to be cited, provides a mostly-accurate APA in-text citation. The reference list includes cited sources and may erroneously include sources that were not cited. There is no evidence of copying and pasting and or other types of plagiarism. Indicates a satisfactory understanding of the topic. |
Rarely identifies the correct issue, collects insufficient information, and does not apply a logical step-by-step decision-making process to articulate clear, defensible ideas. Lacks clear evidence of original thoughts. May contain too many quotations thus rendering the paper a series of quotes and not a reflection of what the student thought about and wrote. May include inaccurate in-text citations. The reference list may erroneously include sources that were not cited, contain APA formatting errors, and or failed to provide the source for cited content. May contain evidence of copying and pasting and or other types of plagiarism. Indicates a limited understanding of the topic, reflecting what other students have already posted or repeating information that was in the assigned reading. |
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Identification of the Interviewees |
Correctly identifies the correct persons to interview & provides full explanations and detailed descriptions as to why they chose the person. Provides a focused rationale for the choice & justifies that choice using evidence. |
Correctly identifies some of the correct persons to interview & provides some explanation and descriptions as to why they chose the person. Provides a somewhat focused diagnosis rationale for the choice & somewhat justifies that choice using some evidence. |
Does not correctly identify the persons to interview & does not provide an explanation and description as to why. Does not provides a focused diagnosis rationale for the choice & |
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Analysis of Red Flags |
Does not waste space reiterating information provided in the case. Chooses relevant facts & figures for the analysis, and excludes irrelevant, immaterial, & extraneous information. Examines financial and non-financial data, performs data analysis, and evaluates alternatives. |
Wastes some space reiterating information presented in the case. Chooses some of the relevant facts & figures for the analysis, and excludes some of the irrelevant, immaterial, and extraneous information. Examines financial and non-financial data, but does not performs sufficient data analysis to determine and evaluate alternatives. |
Wastes a significant amount of space reiterating information presented in the case. Chooses only a few relevant facts & figures for the analysis, and includes irrelevant, immaterial, and extraneous information. Examines financial and non-financial data, but does not performs sufficient data analysis to determine and evaluate alternatives. Or, did not submit. |
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Skills, Knowledge & Technical Expertise |
Properly identifies the correct investigative skills needed to solve the case. Develops and explains effective knowledge and/or technical expertise that specifically can solve the case. Supports findings with convincing evidence. |
Properly identifies some of the correct investigative skills needed to solve the case. Develops and explains some knowledge and/or technical expertise that specifically can solve the case. Supports findings with some convincing evidence. |
Does not properly identifies the correct investigative skills needed to solve the case. Does not develop and explain the effective knowledge and/or technical expertise that specifically can solve the case. Does not support findings with convincing evidence. Or, did not submit. |
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Question Development |
Properly identifies multiple questions and follow up questions for one of the persons identified. The questions presented provide evidence to help determine who committed the fraud. The questions presented help identify how the fraud was committed. Supports the identification of the questions with evidence. |
Properly identifies a few questions and a few follow up questions for one of the persons identified. The questions presented provide some evidence to help determine who committed the fraud. The questions presented somewhat help identify how the fraud was committed. Supports the identification of the questions with some evidence. |
Does not properly identify questions or follow up questions for one of the persons identified. The questions presented do not provide evidence to help determine who committed the fraud. The questions presented do not help identify how the fraud was committed. Does not support the identification of the questions with evidence. Or, did not submit. |
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Writing Competencies |
Clear, correct, and concise use of English grammar with no spelling or punctuation errors. Employs professional writing without colloquial language. Organization is easy to follow and congruent with graduate level writing skills. |
Clear, correct, and concise use of English grammar with some spelling and/or punctuation errors. Employs professional writing with some colloquial language. Organization is not easy to follow but the submission is written at the graduate level. |
Confusing, incorrect, and or wordy use of English grammar with many spelling and or punctuation errors. Employs unprofessional writing with a significant amount of colloquial language. Organization is not easy to follow and the submission is not written at the graduate level. Or did not submit. |
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Exceeds Performance Expectations |
Meets Performance Expectations |
Does Not Meet Performance Expectations |
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APA Style |
Includes sufficient credible sources from peer reviewed journals, academic, and/or professional resources. All sources are cited per APA style, including properly cited in-text citations. The reference list is complete and accurate. Wikipedia and other non-academic resources were not used. |
Includes some credible sources from peer reviewed journals, academic, and/or professional resources. Some of the sources are cited per APA style, including properly cited in-text citations. The reference list is complete and mostly accurate. Wikipedia and other non-academic resources were not used. |
Includes few credible sources from peer reviewed journals, academic, and/or professional resources. Many sources are not cited or incorrectly cited per APA style, including properly cited in-text citations. The reference list is incomplete and inaccurate. Wikipedia and other non-academic resources were used. Or, did not submit. |
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Overall Score |
Exceeds Expectations |
Meets Expectations |
Does Not Meet Expectations |
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Bottom of Form
Page1 of 2
I. Title: Fraud Examination Findings Report
II. Introduction:
Congratulations! Today is your first day on the job at Red Flag Accounting Company
in the Cyber Forensics Accounting Department. As a recent graduate from UMUC,
you are very excited to get this opportunity because it is the field you were most
interested in and you can’t wait to get started!
Monday morning you receive the following email from your boss (professor):
Welcome aboard! I look forward to helping you succeed here at Red Flag
Accounting Company and I’m right down the hall so let me know if you need
assistance.
For your first task on the job, I’m assigning you to a case which is designed to
assess your level of analytical and writing skills. It will test your ability to
analyze data and discover anomalies. Please make sure you read all the
information provided carefully and then solve the puzzle.
My expectations regarding the deliverables for the task are included below.
Don’t hesitate to get in touch if you run into any problems. As your boss, I am
here to help you succeed. Have a great few first weeks getting to know
everyone. Talk to you later. Bye for now.
You are very excited to get started and impress your boss so you jump right in.
III. Steps to Completion:
Step 1: Read the Darpa case, Darpa Case Appendix, and the case rubric.
All of these documents can be found in LEO under Course
Resource>Classroom Deliverables>Project 1
Step 2: Draft your fraud report
Your boss expects a 2-4 page, APA style Summary of Findings Report that provides
a response to questions 1 through 4 in the case. Note: Use font size of 12 and double
spacing.
As requested, you submit your report to your boss for review.
Page 2 of 2
IV. Deliverables
• 2 – 4 page Summary of Findings Report
V. Hints and Tips:
• Review and refresh your memory of APA style formatting before the
assignment is due.
• Prepare a draft version of your report before it is due and ask a classmate,
friend, or family member to read your report before submitting it.
• Submit your draft to the Graduate Writing Center at least 2 weeks before it is
due. This FREE resource can be accessed in your LEO classroom.
• Make edits to your report after reviewing feedback from the writing center
tutors.
• Ask your boss (professor) questions as needed.
• Submit the project before it is due.
VI. Rubric:
The rubric can be found in LEO under Course Resource>Classroom
Deliverables>Project 1
Credit:
Deloitte’s Business Intelligence Services
Forensic Accounting Case Study Series – sponsored by Deloitte FAS LLP and the Deloitte Foundation
Asset Misappropriation Fraud – Darpa Company
Case No. 2-6
Copyright © 2014 Deloitte Development LLC. All rights reserved.
Company Overview:
Darpa Company (“Darpa” or “the Company”), based in San Francisco, California, helps other
corporations sell and market their pharmaceutical products.
Scenario:
The General Counsel of Darpa has been given an anonymous tip that one of the employees in the
finance department has been committing fraud. The General Counsel has hired your team to
investigate who has been committing the alleged fraud, how it is being committed, and the impact it
is having on the company.
Background:
Using the information below and in the appendix, you must quickly prepare and decide who to
interview. The information in the appendix is as follows:
1) Various e-mails from employees of interest.
2) Excerpts from Darpa’s Quickbooks accounting entries.
3) Darpa Income Statements for the month ending July 2006
Provided below is background information on some of the employees who could be involved with
the fraud:
Joe Smith – Chief Financial Officer
Background Joe is the CFO and has been with Darpa for the last 5 years. He is a highly
respected executive who started working at Darpa after working at Gamorr
Inc. for 29 years. Joe is an approved signor for checks equal to or greater than
$50,000.00 Employees at the company like Joe’s laissez-faire management
style and his friendly demeanor.
Personal
History
Joe has been married for 30 years and has 5 children with 3 currently in
college.
Forensic Accounting Case Study Series – sponsored by Deloitte FAS LLP and the Deloitte Foundation
Asset Misappropriation Fraud – Darpa Company
Case No. 2-6
Copyright © 2014 Deloitte Development LLC. All rights reserved.
Anne Smith – Controller
Background Anne is the Controller and she has been working at the Darpa Company for 17
years since joining right of college.
Personal
History
Anne has been married to her high school sweetheart for almost 15 years and
they will celebrating their anniversary in about a month. She has no children.
Bill Warner – Accounting Manager
Background Bill Warner is the Accounting Manager and has been working at the Darpa
Company for 10 years. He is known for his good work ethic and love of math.
Bill rarely makes a mistakes and people have learned not to mess with his
financial statements without his permission for fear of his wrath.
Personal
History
Bill is single with few friends at the company. Furthermore, Bill recently has
not been talking with colleagues and seeks solitude. Many attribute this to him
having some medical issues.
Assignment:
Please complete the tasks and provide answers to the following questions below as you prepare for a
formal in-person meeting with one of the three employees.
Tasks/Questions
1. Who would you like to interview and why?
2. What red flags did you discover while reviewing financial statements and e-mails that led
you to your conclusion?
3. What investigative skills/fund of knowledge/other technical expertise would be needed to
resolve a case like this?
4. Using all of the information you just gathered, come up with some questions (and a follow up
question if necessary) to ask either Joe Scott, Anne Smith, or Bill Warner in order to help
you determine who committed the fraud and how he/she did it.
1.July 2, 20
3. July 5, 20
006
006
2. July 3,
4. July 7
, 2006
7, 2006
5. July 7, 20
006 6. Augus
st 8, 2006
Excerpt from Darpa Co. Quickbooks
Quickbooks accounting entries
Trans # Type Date Num Name Memo Account Debit Credit Account Type Last
Entered
Date
Last Entered
By
Last
Approved by
10504 Invoice 7/1/2006 JJ070105 Alfa Corporation Accounts
Receivable
346,893.75 Accounts
Receivable
6/30/2006 Anne Smith Bill Warner
10504 Invoice 7/1/2006 JJ070105 Alfa Corporation Sales Production A Sales 138,431.25 Income 6/30/2006 Anne Smith Bill Warner
10504 Invoice 7/1/2006 JJ070105 Alfa Corporation Sales Production B Sales 149,712.50 Income 6/30/2006 Anne Smith Bill Warner
10504 Invoice 7/1/2006 JJ070105 Alfa Corporation Sales Production C Sales 58,750.
00
Income 6/30/2006 Anne Smith Bill Warner
10505 Check 7/7/2006 9194 Bravo Automobiles ID. Code Jul ‘06 Commissions 45,300.00 Other Expense 7/7/2006 Anne Smith Anne Smith
10505 Check 7/7/2006 9194 Bravo Automobiles ID. Code Jul ‘06 Accounts
Payable
45,300.00 Liability 7/7/2006 Anne Smith Anne Smith
10505 Check 7/7/2006 9194 Bravo Automobiles ID. Code Jul ‘06 Accounts
Payable
45,300.00 Liability 7/7/2006 Anne Smith Anne Smith
10505 Check 7/7/2006 9194 Bravo Automobiles ID. Code Jul ‘06 ABC Bank
Checking
45,300.00 Bank 7/7/2006 Anne Smith Anne Smith
10506 Check 7/7/2006 9214 Charlie Vehicles ID. Code Jul ‘06 Commissions 50,000.00 Other Expense 7/7/2006 Joe Scott Bill Warner
10506 Check 7/7/2006 9214 Charlie Vehicles ID. Code Jul ‘06 ABC Bank
Checking
50,000.00 Bank 7/7/2006 Joe Scott Bill Warner
10506 Check 7/7/2006 9234 Charlie Vehicles ID. Code Jul ‘06 Commissions 10,050.00 Other Expense 7/7/2006 Joe Scott Bill Warner
10506 Check 7/7/2006 9234 Charlie Vehicles ID. Code Jul ‘06 ABC Bank
Checking
10,050.00 Bank 7/7/2006 Joe Scott Bill Warner
10507 Check 7/9/2006 9254 Delta Company ID. Code Jul ‘06 Profile 56,750.50 Cost of Goods
Sold
7/8/2006 Anne Smith Bill Warner
10507 Check 7/9/2006 9254 Delta Company ID. Code Jul ‘06 ABC Bank
Checking
56,750.50 Bank 7/8/2006 Anne Smith Bill Warner
10508 Check 8/6/2006 9274 Echo Firm ID. Code Aug ‘06 Profile 41,250.04 Cost of Goods
Sold
8/8/2006 Anne Smith Bill Warner
10508 Check 8/6/2006 9274 Echo Firm ID. Code Aug ‘06 Profile 102,250.10 Cost of Goods
Sold
8/8/2006 Anne Smith Bill Warner
10508 Check 8/6/2006 9274 Echo Firm ID. Code Aug ‘06 ABC Bank
Checking
143,500.14 Bank 8/8/2006 Anne Smith Bill Warner
10509 Check 8/7/2006 9194 Bravo Automobiles ID. Code Jul ‘06 Profile 45,300.00 Cost of Goods
Sold
8/8/2006 Anne Smith Anne Smith
10509 Check 8/7/2006 9194 Bravo Automobiles ID. Code Jul ‘06 Commissions 45,300.00 Other Expense 8/8/2006 Anne Smith Anne Smith
10538 Invoice 8/7/2006 BER070105 Foxtrot Machines Accounts
Receivable
243,477.25 Accounts
Receivable
8/8/2006 Anne Smith Bill Warner
10538 Invoice 8/7/2006 BER070105 Foxtrot Machines Sales Production A Sales 54,332.00 Income 8/8/2006 Anne Smith Bill Warner
10538 Invoice 8/7/2006 BER070105 Foxtrot Machines Sales Production B Sales 45,234.25 Income 8/8/2006 Anne Smith Bill Warner
10538 Invoice 8/7/2006 BER070105 Foxtrot Machines Sales Production C Sales 143,911.00 Income 8/8/2006 Anne Smith Bill Warner
10539 Check 8/9/2006 9314 Audit Adjustment Audit Adjustment #1 Formulary 54,454.13 Operating
Expense
8/9/2006 Anne Smith Joe Scott
10539 Check 8/9/2006 9314 Audit Adjustment Audit Adjustment #1 Accrued
Expense
54,454.13 Accrued
Expense
8/9/2006 Anne Smith Joe Scott
10540 Check 8/9/2006 9404 Audit Adjustment Audit Adjustment #2 ABC Bank
Checking
34,000.00 Bank 8/9/2006 Anne Smith Joe Scott
10540 Check 8/9/2006 9404 Audit Adjustment Audit Adjustment #2 Accounts
Receivable
34,000.00 Accounts
Receivable
8/9/2006 Anne Smith Joe Scott
As of August 5, 2006 As of August 8, 2006 As of August 11, 2006
Darpa Company Darpa Company Darpa Company
Profit & Loss Profit & Loss Profit & Loss
For the Month Ended July 2006 For the Month Ended July 2006 For the Month Ended July 2006
Ordinary Income/Expense Ordinary Income/Expense Ordinary Income/Expense
Income Income Income
Primary Research 30,250.43 Primary Research 30,250.43 Primary Research 30,250.43
Sales 809,345.23 Sales 809,345.23 Sales 809,345.23
Total Income 839,595.66 Total Income 839,595.66 Total Income 839,595.66
Cost of Goods Sold 234,795.50 Cost of Goods Sold 280,095.50 Cost of Goods Sold 280,095.50
Gross Profit 604,800.16 Gross Profit 559,500.16 Gross Profit 559,500.16
Expense Expense Expense
Operating Expense 419,984.74 Operating Expense 419,984.74 Operating Expense 474,438.87
Other Expense 105,350.00 Other Expense 60,050.00 Other Expense 60,050.00
Total Expense 525,334.74 Total Expense 480,034.74 Total Expense 534,488.87
Net Income 79,465.42 Net Income 79,465.42 Net Income 25,011.29
Author
Darp
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Premiu
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pa Company
Naboo St.
Francisco, CA 9410
5
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46 Tatooine Ave.
Francisco, CA 94105
adillac CTS-V Sedan
um Package
7/7/06
1
1
7/7/06 5473
$44,540.00
$10,050.
00
$60,050.00
$54,590.00
$5,460.00
Au
B
1
S
200
uthorized Signature
Darpa Company
123 Naboo St.
San Francisco, CA 94105
Bravo Automobiles
134 Alderaan Blvd.
San Francisco, CA 94105
6 Audi S4 Sedan
5
7/7/06
1
7/7/06 2792
$41,180.0
$45,300.
$41,180.
$4,120.
00
00
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