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ACC 646 Final Project Milestone One Guidelines and Rubric Overview: Forensic accounting has been identified as the fastest growing area of accounting. Fraud examiners must understand the legal aspects of fraud and what constitutes fraud. To be successful in this industry, they must be able to determine why people commit fraud and how to prevent it from happening. Through this analytical process, examiners may then provide organizations with recommendations for improving their internal controls, thus preventing further financial losses and additional harm to their reputations. For this assessment, you will assume the role of a fraud examiner using a case study based on an actual fraud occurrence. Cressey's fraud triangle will be used to assess the three conditions present in fraud cases: incentives, opportunity, and rationalization. The case will also provide you with the opportunity to employ basic techniques for identifying red flags for fraud occurrence, recognize legal and regulatory issues, and compose an executive report for management. Note: You will be using the same case for all milestones and the final project. For Milestone One, you will submit an introduction to fraud as it applies to your case study analysis. Consider the elements of fraud, the theories of crime causation, red flags of evidence based on the elements of the fraud triangle, regulatory and legal factors in preventing and/or detecting fraud, and developments in the accounting industry that impact fraud investigation. Prompt: Introduce fraud, theories of crime causation, legal and regulatory factors involved in prevention or detection, and recent developments in the field. Specifically, the following critical elements must be addressed: I. Introduction a) What are the elements of fraud and the importance of studying fraud? How does knowledge of fraud benefit stakeholders beyond the accounting department? b) What are the different theories of crime causations? How does the identification of the cause of the fraud assist the investigator in determining the perpetrator and the extent of the crime? Provide specific examples that link crime causation to the perpetrator and the crime. c) Use the fraud triangle to discuss red flags of evidence of pressure, opportunity, and rationalization typically present when fraud occurs. Be sure to link each red flag to a specific area of the fraud triangle. d) Describe the regulatory and legal factors that impact the prevention and/or detection of fraud. e) Explain the recent developments that impact the accounting industry and specifically the fraud investigation. Consider linking previous cases of fraud to changes in the fraud investigation. Guidelines for Submission: Your introduction must be submitted as a 2-3 page Microsoft Word document with double spacing, 12-point Times New Roman font, one-inch margins, and at least three sources cited in APA format. Instructor Feedback: This activity uses an integrated rubric in Blackboard. Students can view instructor feedback in the Grade Center. For more information, review these instructions. Rubric Critical Elements Introduction: Elements Proficient (100%) Explains the elements of fraud, the importance of studying fraud, and how knowledge of fraud benefits various stakeholders beyond the accounting department Needs Improvement (75%) Explains the elements of fraud and the importance of studying fraud but does not explain how knowledge of fraud benefits stakeholders beyond the accounting department or explanation is cursory or contains inaccuracies Introduction: Discusses the different theories of crime Discusses the different theories of crime Theories of Crime causation and how the identification of causation and how the identification of the Causations the cause of the fraud assists the cause of the fraud assists the investigator in investigator in determining the determining the perpetrator and the extent of perpetrator and the extent of the crime the crime but does not provide specific and provides specific examples linking examples linking crime causation to the crime causation to the perpetrator and perpetrator and the crime or discussion is the crime cursory or contains inaccuracies Introduction: Discusses the red flags of evidence of Discusses the red flags of evidence of pressure, Evidence pressure, opportunity, and rationalization opportunity, and rationalization typically typically present when fraud occurs using present when fraud occurs but does not use the the fraud triangle and links each red flag fraud triangle to a specific area of the fraud triangle Introduction: Describes the regulatory and legal factors Describes the regulatory and legal factors that Regulatory and that impact the prevention and/or impact the prevention and/or detection of fraud Legal Factors detection of fraud but description is cursory or contains inaccuracies Introduction: Recent Explains the recent developments that Explains the recent developments that have Developments have impacted the accounting industry impacted the accounting industry and and specifically fraud investigation specifically fraud investigation but explanation is cursory or contains inaccuracies Articulation of Submission has no major errors related to Submission has major errors related to citations, Response citations, grammar, spelling, syntax, or grammar, spelling, syntax, or organization that organization negatively impact readability and articulation of main ideas Not Evident (0%) Does not explain the elements of fraud and the importance of studying fraud Value 19 Does not discuss the different theories of crime causation 19 Does not discuss the red flags of evidence of pressure, opportunity, and rationalization typically present when fraud occurs 19 Does not describe the regulatory and legal factors that impact the prevention and/or detection of fraud 19 Does not explain the recent developments that have impacted the accounting industry and specifically fraud investigation Submission has critical errors related to citations, grammar, spelling, syntax, or organization that prevent understanding of ideas Earned Total 19 5 100%