Advanced Forensic Accounting -ACC 465 UNIT 4 Dr. Doug Letsch I am online waiting for the live session to begin. If you have a general question, please ask it in the chat window. The only talking you will here is when I welcome someone who has just signed in. If you don’t hear me welcoming everyone, please adjust your speakers. Let me know if you have problems. Thanks, Dr. Doug

Cleanup WP Problem Review Chapter 6 Questions

CLEAN UP

Learning Journal – Easy to earn points Assignments –those that complete the work are doing great! Quizzes – take anytime even if late Keep up the great work everyone; I am very impressed.

PROBLEM REVIEW What caused the most problem?

WEEK 3 PROBLEMS: Several had problem with this quiz question: A. Collusion is almost impossible to detect because the persons charged with providing internal control are part of the fraud. MOST ANSWERED FALSE. Why did you think this was false? B. Following the money is easier than tracing the money? Half answered True but this is false. See page 89, 2 nd paragraph. Refers to chapter 16 so you must look there to answer. Pg 490 show answer to be false. C. Computer Crime involves the attempt to access data illegally? 92% said True but this is false? This is one of those questions that “get” everyone. Why? Week 4 Assignment: 35 page Harvard Business School Case Read the case and answer the questions listed. Become a CSI

CHAPTER 6 Criminal and Civil Actions

CRIMINAL VS CIVIL ACTIONS Fraud may be prosecuted criminally or civilly. Criminal cases are brought forth by the government through the criminal justice system. Civil cases by a plaintiff. Primary difference between systems is the potential remedy for the victim: Civil process is monetary damages Criminal justice results in fines, community service, probation, incarceration, and censure

CRIMINAL CASE 1.Arrest by police based on probable cause 2.the prosecuting attorney, who decides whether charges will be filed against the target 3.The next step is an arraignment hearing 4.Trial by jury 5.Acquittal or conviction 6.Sentencing

CIVIL CASE 1.Complaints and Pre-trial Activity 2.Discovery a)Interrogatories b)Requests for documents c)Attorneys take sworn testimony d)Requests for admission 3.Negotiated settlements 4.Pretrial motions 5.Trial 6.Civil judgment

COMPARING RIGHTS The Fourth Amendment prohibits unreasonable searches and seizures The Fifth Amendment provides that a person cannot be compelled to provide incriminating information against himself in a criminal case The Sixth Amendment provides that an individual has the right to an attorney to defend himself and the right to confront witnesses against him The Fourteenth Amendment entitles a person to due process of law and equal protections under the law Reveal evidence of work-related misconduct and be helpful Rights are very limited; provide information or be terminated. No attorney needs to be present; no right to consult with or be represented by an attorney. Only some common law rights. Other rights available per State law. CriminalCivil

VIDEO COMPARISON CriminalCivil Short video on a criminal fraud case. Note the process in the trial. Please skip the ad at the front of the video. Where in this trial might a forensic accountant be useful? Short video on preparing for a civil trail. Watch the first 4 minutes and 7 seconds ONLY. Then return. e=BFa&list=PL9DA F085A&index=10 Where could a forensic accountant be used in civil trails?

COMPARING PRIVILEGES CriminalCivil Privilege against forced self-incrimination. Attorney–client privilege (N/A for future crime evidence) Attorney work-product privilege Physician–patient privilege-waiver for patients/litigation Marital privileges – spousal immunity expectations=torts/crimes Miscellaneous privileges – clergy-confessional privilege No privilege for accountants None Attorney–client privilege (N/A for future crime evidence) Attorney work-product privilege Physician–patient privilege-waiver for patients/litigation Marital privileges – spousal immunity expectations=torts/crimes Miscellaneous privileges – clergy-confessional privilege No privilege for accountants

RULES OF EVIDENCE Evidence must be: presented at trial to prove a contention and convince a jury. Admissible if Relevant: probative value > prejudicial effects Trustworthy Real evidence=speaks for itself -No explanatory testimony Demonstrative purports to educate, summarize, or amplify real evidence Documentary evidence needs these elements: 1. The document must not have been forged. 2. Original documents are preferable. 3. The document must not be hearsay or objectionable. 4. The document needs to be authenticated. 5. The document must be reliable. Forensics?

Are there any questions? If you attending the live session tonight, then you do NOT need to complete the alternative seminar assignment.