FIFA S2 2025

Course Title

Financial Investigations and Forensic Accounting

Description

The aim of this module is to provide a solid foundation for building skills in forensic accounting techniques, including gathering, interpreting, and documenting evidence. This course examines the investigative techniques used by accountants to conduct forensic examinations as well as common schemes and techniques used to commit fraud. The skills acquired will enable the learner to assist businesses in detecting, investigating, documenting and preventing fraud.

NQF Level

8

Notional Hours

120

NQF Credits

12

Prerequisites

Auditing 2 and Taxation 2

Standard Type (Core, fundamental, elective)

Fundamental

Learning Outcomes/Specific Outcomes

Upon successful completion of the course, students will be able to:

 

·            Analyse the accounting and legal fundamentals for forensic accounting

·            Evaluate the Namibian Intelligence Act of 2012 and how fraud is detected

·            Illustrate and explain the sources of forensic evidence and investigative techniques used by forensic accountants

·            Explain the characteristics of financial statement fraud

·            Recognise and analyse types of employee and vendor fraud and the circumstances that leads to employee fraud

·           Critically discuss divorce fraud, identity theft, organised crime, terrorism and money laundering

·           Describe the process of valuing a business

·           Explain the process of creating an alternative dispute resolution department and expert consulting and testimony

 

Course Content

Accounting and Legal Fundamentals for Forensic Accounting

·         describe the role of the forensic accountant

·         differentiate between forensic accounting and auditing

·         analyse legal fundamentals (including financial crimes and criminal and civil processes)

·         evaluate transaction cycles and internal controls

 

The Auditing Environment and the Namibian Intelligence  Act of 2012

·         analyse the audit process (including methods and techniques used and types of audit reports issued)

·         explain the auditor's responsibility to detect fraud

·         evaluate Namibian Intelligence  Act of 2012 (including overall objectives, major provisions, compliance with the act and evaluation of effectiveness)

 

Forensic Accounting tools and Techniques

·         analyse the key concepts of forensic science applicable to accounting

·         identify the key concepts of information security management systems

·         explain the effect of suspected fraud on the audit of financial statements or a forensic investigation

·         evaluate the common indicators of fraud; common analytical procedures

·         illustrate and explain the sources of forensic evidence and investigative techniques used by forensic accountants

·         explain the interview and interrogation techniques

 

Financial Statement Fraud

·         describe financial statement fraud schemes (including improper revenue recognition, overstatement of assets, understatement of expenses and liabilities, misappropriation of assets, inappropriate disclosure and other miscellaneous techniques)

·         explain the characteristics of financial statement fraud; motives of management to commit financial statement fraud; financial statement fraud, the stock market and insider trading

·         explain the prevention of financial statement fraud

·         describe the red flags of financial statement fraud

 

Employee and Vendor Fraud

·         investigate the circumstances that lead to employee fraud, types of employee and vendor fraud (including transaction cycle fraud and electronic information fraud)

·         describe the internal control weakness and fraud

 

Tax, Bankruptcy, and Divorce Fraud; Identity Theft; and Money Laundering

·         describe an overview of tax fraud

·         explain the tax practitioner and the (Inland Revenue Services) IRS

·         identify and explain the principal tax evasion crimes

·         explain civil tax fraud

·         describe the statute of limitation

·         explain the methods of proof, tax protesters, bankruptcy and fraud

·         explain divorce fraud, identity theft, organised crime, terrorism and money laundering

 

Professional Services: Business Valuation, Dispute Resolution, and Litigation

·         describe an overview of business valuation

·         explain the  basic valuation theory

·         describe the process of valuing a business

·         identify the different valuation methods

·         identify forms of alternative dispute resolution

·         explain the process of creating an alternative dispute resolution department and expert consulting and testimony

 

Methods of Facilitating Learning

The course can be inter alia facilitated through the following learning activities:

  • Lectures
  • Assigned readings
  • Discussions (all learners are expected to participate)
  • Individual or group class presentations
  • Assignments and tests
  • Field work/ excursions
  • Case Studies
  • Simulations
  • Power point presentation
  • Videos and audio recordings
  • Guest lecturers
  • Peer to peer teaching

Assessment Strategies

The course will be assessed using a combination of Continuous Assessment and an end-of-semester examination. Continuous Assessment is made up of the following:

 

Continuous Assessment : 40%

 

·         Tests

·         Assignments/Projects

·         Exercises

·         Quizzes

·         Worksheets

·         Practical  exercises

 

Final Examinations: 60%

Time allocation per question paper: between 2 and 3 hours

 

  • The final examination will test the knowledge, understanding and skills outcomes in any given year on the course content covered.
  • The intention of the examination in its formulation is to avoid predictability and encourage students to prepare for all syllabus outcomes.
  • The level of complexity of a paper/s will be maintained consistently from year to year.
  • The intention of the examinations is to assess the following objectives:

Ø  Knowledge and Understanding

Ø  Application

Ø  Analysis

Ø  Evaluation

  • The examinations may include a range and balance of question types, such as multiple-choice questions, short-answer free response questions, open-ended questions and extended responses including essays. These will be determined by the Department in which the subject resides and with the approval of the Examinations Committee.
  • The demands of the examination in terms of the number and length of student responses required, the amount of reading time provided and the complexity of the questions will be appropriate for the time allocated for the examination.

 

Recommended Textbooks

Hopwood, W. S., Leiner, J. J., & Young, G. R. (2008).Forensic accounting. Boston: McGraw-Hill Irwin.

 

Namibian Intelligence Act of 2012.

 

Financial Intelligence Centre Act (SA).