The skill that I find most helpful that I learned from this class is to always be on the lookout for
potential fraud. c I think that when you have studied fraud investigations, you carry that skepticism
with you forever. c Knowing what could become a potential issue allows you to identify the signs
quicker and makes you a better accountant. c It is our job to ensure that financial statements are
reported correctly as we are the last line of defense before the BOD or executives review it and then
includes any fraudulent activity. c Know that everyone has the potential and the opportunity to
commit fraud so it is very important that internal controls are strong and that employees feel
comfortable coming forward if they suspect any wrong doings.
These skills included gathering data and transforming data into evidence, which allows one to
provide an interpretation of the evidence so that one gains the understanding necessary to provide
the assurance to the courts or the public interest, depending on the setting. Effective data gathering
as a forensic accountant will require one to exercise professional judgment when determining the
types of data, one will analyse and when determining whether the data gathered was sufficient,
relevant, and reliable. “Forensic Accountants as professionals are trained to be proficient in the use
of professional skills, core arithmetic, analytical and investigative skills, and competencies in the
assessment of risk factors that could lead to material misstatement” (N.U., & Okenwa, 2021, 451).
The concepts learned allows us to understand how to investigate and the steps needed to detect
any potential fraud or misstatements that can affect the relevance and reliability of the data
reported on a company’s financial statement. Given that I work as an Accounting Manager for a
nonprofit organization, I was able to acknowledge the importance of written reports and the need
to document any details that can potentially impact the outcome of a case or investigation. c I have
found myself writing up summary reports after every meeting that I have with program directors,
peers, management, and other third parties, as it helps me document any needs or concerns that
the individuals may have expressed during our meeting. I can then always look back at these reports
to serve as guidance when constructing budgets and making revisions when necessary. “More
importantly, the forensic accountant’s objective is to provide a credible and legally sufficient
communication,” as it can, “provide a comprehensive discussion of the assignment, allowing the
reader to develop a greater understanding of the data, reasoning, and analyses leading to the
opinions (conclusions) stated” (Rufus et al., 2015, 380).
When reflecting on the course, the most interesting concepts, in my view, are from real case
experiences and the theories of fraud, mainly white-collar crime and the characteristics of a
fraudster.
The Fraud Diamond theory was introduced with an added condition to the Fraud Triangle:
Capability. The theory did not necessarily move me; however, the introduction made me think. I
think capability or incapacity used as an argument by defense attorneys, as described in our text, is
something to consider when collecting evidence or conducting an interview. (Rufus, Miller, Hahn,
2014) However, my overall thought was it almost does not make sense because capability and
opportunity may be considered the same in some regard or until one enters the physiological abyss
to garnish empathy for a defense. I find this interesting when a “typical white-collar fraudster lacks
feelings of empathy” (Rufus, Miller, Hahn, 2014).
Furthermore, it seems that consideration for incapacity would only truly be present in a sort of
confession by the subject. Also, I would debate if fraud were committed, the subject was capable
whether the subject was caught or not. Overall, I think the fraud triangle is key. Through personal
work experience, every fraudster I have encountered has encompassed every point of the fraud
triangle: pressure, opportunity, and rationalization. (Rufus, Miller, Hahn, 2014)
A new concept learned that positively resonates with me is the Scientific Approach to an
Engagement (Rufus, Miller, Hahn, 2014), encompassing the following five steps: Step 1: Define the
Purpose, Step 2: Form a Hypothesis, Step 3: Gather Evidence, Step 4: Interpret Data and Refine
Hypothesis, Step 5: Draw Conclusions. (Rufus, Miller, Hahn, 2014) I think the Scientific Approach to
an Engagement is a great outline or reference to begin a project and revisit.
Leaving the term and course, I have learned a lot, new tools, and more to offer my clients. Also, with
the current high-profile fraud cases in the media, I understand what everyone is talking about and
can even fill in the blanks! Overall, I still aspire to take on investigative projects and divorce cases.
c This was good, for although I do not want to become a fraud investigator, I now have a better
understanding behind what goes on during an investigation. c I feel the fraud triangle was probably
where I came to this realization as it helps in assessing what is lacking in the controls. c Usually, I
approach an audit thinking that something was misrepresented due to human error but I have
become a bit more suspicious in my work. c Hopefully I do not find an administrator who is
mismanaging retiree funds, but I feel more aware none the less.
The concepts that we have studied in the course will be very useful in my career, and currently they
already are. In my department at my job, we have our external auditors that conduct an audit exam
every year. This is mainly to prepare us for our FDIC exam. They ask us specific questions to
understand our job functions, and if there are new processes that have been implemented, they
want to know. They are essentially gathering evidence to determine our final grade for the exam. It
was also interesting to learn about the different theories of crime causation and what drives a
criminal to commit a crime, better known as the fraud theory. I could use the red flags talked about
in the text to analyse if I believe a co-worker, or even a manager, is committing fraudulent acts.
Lastly, I must abide by the professional responsibilities of the accounting profession, which are “to
employ the degree of knowledge, skill, and judgment ordinarily possessed by members of the
profession, to follow the highest standards of conduct prescribed by each of the organizations to
which the professional (or firm) belongs, and to adhere to the provisions of any regulatory or
licensing authority” (Rufus, Miller, & Hahn, 2014, p. 292).
This has been an interesting class to take. I have always loved mysteries and trying to solve them.
This class was about finding out which companies have committed fraud, how they committed the
fraud, and why. I want to go into auditing which the skills I learned in this class will prepare me for.
Skills such as examining and gathering data will be relevant for ensuring companies are acting in
compliance and if not, how the financials have been affected. We also had an activity where we
learned about the factors to consider when deciding to accept or reject an assignment. This skill will
also be useful as an auditor because in some cases you would need to decide whether to accept or
reject a new client and looking at factors such as why they need a new auditor or they consistently
need a new auditor every couple year can signal that this would be a risky engagement or should be
rejected.
This has been one of my most interesting classes. I love the hunt of looking up companies and
seeing what fraud they committed, why they committed it, and what eventually happened to the
company. I have loved looking up Enron and seeing how greedy the upper management team was
and how that eventually caused the company to have to file for bankruptcy and to close. The
concepts and/or skills learned in this class that I find most interesting and will be most useful to my
professional or personal life is the fraud triangle that was developed by Dr. Donald Cressey. c The
fraud triangle is made of 3 categories: opportunity, rationalization, and financial pressures, and it
explains why so many people commit fraud. This was very interesting to me because now after
further researching, I totally agree with the findings. Having knowledge of this will allow me to make
sure that I do not think like this and allows me to help my friends and family if I feel like they might
be leaning towards making up and excuse to do something illegal.
References
Rufus, R., Miller, L., & Hahn, W. (2014, p. 292). Forensic Accounting. Pearson Education.
Rufus, R., Miller, L., & Hahn, W. (2014). Forensic accounting. Upper Saddle River, NJ: Pearson
Education.
J., N. U., & Okenwa, O. C. (2021). Effective Deploy of Digital Forensic Techniques and the Sustenance
of Material Misstatement-Free Financial Reporting in c c Nigeria. Journal of Academic Research in
Economics, 13(3), 442–478
Rufus, R., Miller, L., & Hahn, W. (2015). Forensic Accounting. Pearson Education, Inc.
