Institute of Rural Management Anand (IRMA)

Programme Post Graduate Diploma in Management (Rural Management)

Batch PGDM(RM)-42
Academic Year 2022-23
Course Level Basic
Course Code FSS
Area Finance and Accounting
Term VI
Title of the Course Financial Statements Fraud
Credits 1.5
Number of Section(s) 1
Type Elective
Prerequisites NA
Course Instructor CA. Asmita H. Vyas
Email ID asmita@irma.ac.in
Contact Number 9974571571

Course Description:

No one is safe. Schemes and scams have become sophisticated and appear to be legitimate.
Preventing fraud and scams is an ever-changing process and we must quickly adapt to meet the
new challenges. Keep in mind this golden rule: “if it sounds too good, it's probably a scam”.
Financial statement fraud has increasingly become a serious problem for business,
government, and investors. Education is the sword needed to strike a blow against white collar
crime. and in this war, financial statement fraud can be a powerful weapon.

Course Objectives:

(i) To discuss the process of frauds with appropriate examples,

(ii) To make the participants realize how fraudulent activity can affect the various
stakeholders of the business,
(iii) To sensitize the role of Management, Auditors, and other Stakeholders in avoiding a
fraud, and To make participant understand how to keep themselves out of fraudulent
activities

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 Alignment of the Course Objectives with the Programme

Fraud can affect an organization like termite. To prevent the organization, it is important to know
about Fraud detection, investigation &prevention. If participants will work in NGOs or
Cooperatives or any organizations, the first rule is to avoid fraud trap. At the heart of all analysis
lie numbers and sometimes numbers that lie. Being a future manager participants are able to
smell these numbers and sift the truth from the tale of artist of rosy picture.
Learning Outcome:

Understanding fraud fundamentals and fraud triangle.

Common fraud schemes and scenarios, Characteristics of fraudsters.
Knowledge of fraud prevention and detection programs.
Tools for detection and investigation
Implementing fraud audit techniques.
Fraud Management Framework and Application
Pedagogy / Teaching Methodology:

This course will follow a variety of approaches ranging from case discussions, lectures and class
presentations.

Evaluation:
Component Learning Objective/s *Weightage %
Class Participation
Quiz Check subject knowledge 20%
Individual
Assignment
Group Assignment Through discussion -get collective decision- 30%
Justify it with arguments
Take Home
Assignment
Research Article
Review/Discussion
Any Other
Component
Mid Term
End Term Test of Knowledge related to this subject 50%
TOTAL 100

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*No single component should have a weightage of more than 50 percent of evaluation in a 1.5-credit
course and more than 35 percent in a 3-credit course.

Details/Instructions for Evaluation: <Write Nil, If None, Do Not Delete>

NIl

TEXTBOOKS: <write NIL, if none, do not delete>NIL

• <Author A, Author B (YYYY)> <“Name of Textbook”>, <xth Edition>, <Name of Publisher>,
<pp XXX-XXX>.
• <Author A, Author B (YYYY)> <“Name of Textbook”>, <xth Edition>, <Name of Publisher>,
<pp XXX-XXX>.

ADDITIONAL BOOKS / READINGS: <write NIL, if none, do not delete>

• <Author A, Author B (YYYY)> <“Name of Textbook”>, <xth Edition>, <Name of Publisher>,
<pp XXX-XXX>.
• <Author A, Author B (YYYY)> <“Name of Textbook”>, <xth Edition>, <Name of Publisher>,
<pp XXX-XXX>.

RB 1: Stephen Pedneult. (2009), Fraud 101: Techniques and Strategies for Understanding Fraud,
Third Edition, John Wiley &amp; Sons, Inc.

RB 2: Zabihollah Rezaee and Richard Riley (2010), Financial Statement Fraud: Prevention and
Detection, Second Edition, John Wiley &amp; Sons, Inc.

RB 3: Michael J Comer (1998), Corporate Fraud, Third Edition, Network Security Management Ltd

RB 4: W. Steve Albrecht(2016) Fraud Examination ,Fifth edition, Cengage Learning

RB 5: Howard R Davia, Accountant’s Guide to Fraud Detection and Control, Second edition,Wiley

RB 6: Zabihollah Rezaee,Financial Statement Fraud Prevention and Detection, Second edition ,Wiley

SCHEDULE OF SESSIONS:

Session No. 1 Title of the Session: Define Financial Statement Fraud ;

Financial Reporting Structure
Objectives: Understand nature of Financial Fraud
Readings: TAU
Session No. 2 Title of the Session: Cooking the Books Equals Fraud
Objectives: financial statement fraud analysis
Readings: TAU
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 Cases: Satyam
Session No. 3 Title of the Session: Realization, Prevention and Detection; financial
statement fraud prevention and detection; correction procedures
Objectives: financial statement fraud prevention and detection
Readings: TAU
Session No. 4 Title of the Session: Prevention, Detection and Correction strategies; anti-
fraud applications for practice
Objectives: anti-fraud applications for practice
Readings: TAU
Cases: Ketan Parekh and the Stock Market Scam of 2001
Session No. 5 Fraud schemes: symptoms of financial fraud; common fraud schemes;
common revenue fraud schemes
Objectives: How to get symptoms of financial fraud
Readings: TAU
Cases: Harshad Mehta and the Stock Market scam
Session No. 6 Financial Statements Fraud Red Flags; antifraud applications for practice
Objectives: How to identify red flags
Readings: TAU
Cases: Nirav Modi, The Punjab National Bank Fraud
Session No. 7 Title of the Session: Management’s Role in Financial statements: Fraud
Prevention and Protection
Objectives: variety of factors to engage in financial statement fraud
Readings: TAU
Cases: Saradha Scam
Session No. 8 Title of the Session: Internal Audit in Financial statement Fraud Prevention
and Detection
Objectives: effective areas to protect companies from financial fraud
Readings: TAU
Cases: HBS case
Session No. 9 Title of the Session: External Auditor: Fraud detection Procedure
Objectives: Aware about Fraud detection Procedure
Readings: TAU
Cases: From a group of Participants
Session No. 10 Title of the Session: The Interrelationship: Auditing, Fraud Examination, and
Forensic Accounting
Objectives: Discuss learning outcomes
Readings: TAU
Cases: From a group of Participants

<For 1.5 credit course, 10 sessions will be there. For 3.0 credit course, there would be 20 sessions>

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