economic crime studies online learning

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1 economic crime studies online learning British Columbia Institute of Technology advanced specialty certificate part-time studies bcitforensics.ca

2 applicant s handbook economic crime studies online learning advanced specialty certificate part-time studies Fraud is not an accounting problem; it is a social phenomenon. Joseph T. Wells, founder of the Association of Certified Fraud Examiners Contents Overview Online Learning Career Opportunities Course Descriptions Contact Information bcitforensics.ca 1

3 economic crime studies internet based studies Overview The economic and social costs of fraud and other economic crime are growing at an alarming rate: >>The typical Canadian organization loses 5 percent of its annual revenue to fraud every year. When the Bre-X scandal broke, the Quebec public-sector pension fund lost $70 million, the Ontario Teachers Pension Plan lost $100 million, and the Ontario Municipal Employees Retirement Board lost $45 million. >>Financial crime is becoming the chief fundraising method for organized crime and terrorist organizations. >>The prevalence of economic crime causes significant increased risk of economic, social, and political instability to Canada and the rest of the world. BCIT s Centre for Forensic and Security Technology Studies offers courses designed to provide qualified professionals with both the theoretical knowledge and the hands-on skills required to prevent, detect, investigate, and prosecute all types of economic crime. Online Learning The Centre for Forensic and Security Technology Studies offers a select number of courses online, enabling greater flexibility for students outside of the Greater Vancouver area, throughout Canada and internationally. You will learn at your own pace and need not commit to a specific block of time every week to attend classes. The online learning experience is interactive, and you will obtain the full benefits of regular online contact with instructors and with fellow students. Instructional materials are clear and easy to navigate through, and our instructors are available at any time to answer questions and provide guidance. Career Opportunities BCIT courses are intended to provide the skills and knowledge that professionals require to work successfully in the prevention, detection, and investigation of commercial crime. There is a growing requirement for professionals in these fields in both the private and public sectors. Sample position titles include: >>Police detective >>Provincial investigator >>Investment analyst >>Insurance investigator (Special Investigations Unit) >>Manager, corporate security >>Network security manager >>Risk manager >>Internal auditor >>Loss claims investigator >>Forensic accountant >>Securities investigator >>Private security or investigations practitioner 2 british columbia institute of technology

4 applicant s handbook Course Descriptions Introduction to Commercial Crimes in Canada FSCT 7210 This course provides an introduction to commercial crimes in Canada. Three main issues are considered: >>theory the criminal code section and the fundamental legal principles underlying the offence; >>practical criteria identifying the priority elements of proof that are required from a practical point of view >>satisfying the criteria reviewing the usual types of evidence required to prove the offence. Primary commercial crimes considered include: fraud, theft, counterfeit currency, credit and debit card offences, internet based frauds, conspiracy, and money laundering. Other topics include: stock market manipulation and other securities related offences, criminal breach of trust, customs and excise offences, secret commissions, planned bankruptcy, and possession of goods obtained by crime. Reference is made to various industry issues such as banking regulations and their impact on the offences being studied. 21st century issues such as the global economy, telemarketing, the cable industry and gaming are also discussed. >>Identify and discuss the theoretical aspects of enumerated criminal code offences, including the fundamental underlying legal principles >>Identify the practical criteria required to prove all elements of the offences as set out in legislation >>Apply the theoretical knowledge in case-study and practical problem situations >>Given a specified fact situation, prepare an investigative plan, setting out the investigative objective to be attained by each step in the plan >>Demonstrate the ability to conduct effective fraud related research from appropriate websites and course materials Forensic Interviewing for Investigators fsct 7231 The success of any investigation at any level is dependent on the investigator obtaining evidence and presenting it in a manner that is acceptable to the courts. Often this evidence is information supplied by people involved in the incidents. The amount and veracity of this information is very important. In this course, you will learn and practice methods and techniques available for interviewing victims, witnesses and suspects in order to obtain proper, informative and legal statements that will both aid in the investigation and are acceptable to the courts. >>Apply communication principles to the interview process >>Interpret verbal and non-verbal responses in a practical application >>Using practical examples, explain how to overcome errors in recalling an incident >>Conduct a cognitive interview using the principles learned >>Assess the fact situation underlying a scheduled interview and demonstrate the ability to plan properly >>Question a subject using proper question formulation, timing and delivery in a practical application >>Conduct the step-by-step procedure of a behaviour analysis interview in a practical application >>Take a formal written statement in a practical application >>Evaluate the veracity of a written statement using the principles learned >>Assess a given fact situation to determine how current case law could affect the admissibility of a statement in court >>Conduct a forensic interview using the methods and techniques learned bcitforensics.ca 3

5 economic crime studies internet based studies Investigation of Securities Crimes fsct 8421 This course introduces various Criminal Code and Securities Act infractions particular to the Canadian securities markets, and to the techniques used by the financial crimes investigator to identify, investigate, and prosecute these offences. >>Describe the basis for and components of securities regulation in Canada >>Describe, compare, and contrast the different approaches to securities regulation in Canada >>Describe common securities law offences and the consequences for offenders Given a particular set of facts: >>Assess the facts from a regulatory perspective >>Identify specific securities law and criminal code offences that may be indicated >>Justify the issuance of an investigation order >>Select an appropriate approach to investigating the alleged offences >>Use government, police and private sources of information to assist in the investigation of offences >>Conduct and develop appropriate lines of questioning and specific questions to elicit the desired relevant information during interviews of witnesses, some of whom may be uncooperative >>Prepare investigative documents, such as demands, summons, evidence log, search warrants and production orders >>Prepare investigation reports to assist in the prosecution of offenders Tactical Analysis fsct 8430 This course focuses on the various duties performed by tactical analysts in law enforcement. You will learn the five stages of the analysis cycle and complete a variety of assignments and tasks associated to each of those stages. To complete the tasks, you will use word processing and charting software programs. The majority of the course will focus on your ability to collate and analyze the information provided. You will then develop your analytical skills in order to effectively target and profile deviant and criminal individuals and groups. You will use your analytical skills to develop logically sound arguments for a variety of law enforcement actions. >>Define analysis and describe the organizational role of analysts >>Describe current trends in analysis >>Develop an analytical plan >>Apply processes for collecting information >>Apply procedures for assessing reliability of service and worth of information >>Assemble investigators data in a format to clearly profile subject(s) activities >>Describe methods and tools used to generate conclusions about the material >>Communicate findings using a variety of communication tools 4 british columbia institute of technology

6 applicant s handbook Forensic Accounting 1 fsct 8440 You will receive basic training using forensic accounting tools and techniques necessary to develop and report financial information regarding criminal investigations. Topics such as expert independence, information sources, rules of documentary evidence, and financial interviewing are covered, as well as forensic accounting approaches to investigating a number of specific criminal offences. >>Explain pre-acceptance considerations for forensic accounting engagements >>Analyze and interpret the results of a forensic accounting investigation >>Communicate the findings of an expert forensic accounting investigation in a way that will be understood by the parties and by the trier of fact >>Apply legal rules for handling and presenting financial and accounting evidence >>Plan for and carry out the gathering of evidence from different sources in support of a forensic accounting investigation >>Plan for and carry out a financial interview >>Trace funds directly and indirectly, and explain the strengths and weaknesses of both tracing methods >>Discuss common characteristics and legal elements of frauds including corruption, arson, bankruptcy fraud, money laundering, and management frauds >>Apply common investigative and audit techniques available to a forensic accountant to assist in the investigation of each of the above frauds Forensic Accounting 2 fsct 8460 Building upon investigative techniques learned in Forensic Accounting I, this course provides you with a knowledge of specific types of commercial fraud and abuse, including asset misappropriation, falsified statements, corruption, and conflict of interest. Characteristics of each type of abuse, as well as indicators, detection, and prevention, will be covered. Specialized topics, such as anti-competitive offences, risks involved in foreign operations, due diligence requirements, and anti-money-laundering and antiterrorism legislation are also canvassed. Topics of particular interest to investigators are the use of computers in the detection of fraud, the conduct of internal (corporate) investigations, and the remedies available to organizations that have been victimized by commercial crime. The orientation of the course will be toward those individuals who have responsibility for the prevention, detection, and investigation of commercial crime in either the corporate or private-sector context. It will be of particular interest to those of you who are employed, or who may be considering a career in the private sector such as security, internal audit, quality control, or risk management. >>Apply internal control principles to assess the strengths and weaknesses of an organization s control systems and to recommend and justify appropriate remedial actions >>Given a specific fact situation, design a system of internal controls for the purpose of preventing, detecting, and recovering from fraud >>Describe, with relevant examples, various types of corporate fraud, asset misappropriation, fraudulent statements other than financial statements and corruption >>Assess a given fact situation to determine whether indicators of fraud exist >>Develop an appropriate plan of action for investigating an incident of suspected fraud bcitforensics.ca 5

7 economic crime studies internet based studies >>Interpret given fact situations to determine whether there may be corporate liability for failure to exercise due diligence under specified legislation, including: >>The Proceeds of Crime (Money Laundering) and Terrorist Financing Act >>The Corruption of Foreign Public Officials Act >>Reporting requirements under the Antiterrorism Act >>Selected offences under the Competition Act >>In a given fact situation, construct a corporate compliance regime that will satisfy the due diligence requirements of various pieces of legislation >>Explain the concept of due diligence in its application to civil liability and litigation >>Evaluate the potential for the use of computer-assisted audit techniques, critical-point auditing, and numerical and digital analysis to detect various types of fraud >>Give simple, non-technical explanation of various numerical analysis techniques and their application in fraud detection >>List the factors that distinguish internal investigations from criminal investigations >>Define and distinguish various types of civil orders (Anton Piller orders, Mareva injunctions, and Norwich Pharmacal orders) >>Discuss, in general terms, the use of the various types of orders in the civil recovery context >>Evaluate a given fact situation to determine whether, and against whom, civil remedies may lie >>Assess a given fact situation to determine what remedies in tort and in contract may be appropriate Forensic Data Analysis fsct 8490 Forensic data analysis involves the examination of organizational data to identify patterns that match known fraud profiles. The patterns sought may be logical (e.g. vendors having the same mailing address as employees) and numerical and statistical (e.g. duplications of specific digits, digit patterns and combinations, specific numbers, and round numbers) patterns in corporate data. 6 british columbia institute of technology Forensic data analysis also involves the use of neural-net and other data mining technologies to gain knowledge regarding databases and to develop models for fraud detection, prediction, and prevention where known fraud patterns are lacking or obscure. Upon completing this course, you will be able to develop a fraud scenario, translate this scenario into a fraud profile, and apply appropriate detective tests to a corporate database. You will be given the opportunity to employ proprietary computer-assisted audit software and data-mining software to practice databases for the purpose of applying learned skills. >>Analyze a given fact situation for the purpose of identifying appropriate data sources to accomplish specified investigative goals >>Develop a plan and procedures for cleaning and preprocessing required to prepare data for analysis >>In a given fact situation, develop and justify a plan of action to address concerns regarding the admissibility and weight of electronic-source evidence > >Apply ACL commands to given input data definition files for the purpose of performing simple rule-based tests >>Determine the appropriate rule-based tests to apply to a set of data for the purpose of achieving a specified investigative goal >>Assess a given fact situation and determine the appropriate digital-analysis test to apply to investigate for fraud >>Interpret patterns in the findings of tests conducted, with particular reference to indicators of fraud and misstatement >>Develop and justify a plan for following up on leads generated >>State, in simple terms, the theory behind basic techniques of bankruptcy forecasting >>Apply a given model bankruptcy-prediction to a simple set of financial statements >>Discuss basic concepts of data mining, particularly in fraudrelated applications >>Apply data-mining concepts to a database of ATM transactions to produce a simple fraud-detection model, using Computer Associates CleverPath Predictive Analysis Server

8 applicant s handbook Fraudulent Financial Statements fsct 8491 Beginning with coverage of the environment in which financial statement fraud occurs, you will learn how to use financial statements and other disclosures for the purpose of assessing the quality of financial reporting and identifying potential signals of manipulation. You will then proceed to cover more complex issues, including business combinations, executive compensation and employee benefits, and the use and misuse of derivatives and special-purpose entities. >>Explain the use and importance of the information that may be found in financial reports and other information sources, in detecting financial statement fraud >>Evaluate a comprehensive financial report, including financial statements and other open-source information, to determine whether it reflects the characteristics that distinguish low-quality from high-quality earnings >>Develop an earnings-management detection strategy >>Analyze a balance sheet using horizontal, vertical, and ratio analysis, as well as by applying detailed analysis to line-items for the purpose of detecting manipulation of assets, liabilities, and earnings >>Analyze an income statement, using high-level and detailed approaches, for evidence of misstatement of revenues and expenses >>Analyze cash flow statements for the purpose of detecting misstatements and mis-categorizations >>Analyze a set of financial statements, using discriminant models such as the Beneish M-score and the Altman Z scores, to determine whether there are indicators of earnings manipulation or other misrepresentation >>Compare and contrast alternative measures of profitability and of cash flow, with emphasis on the relative quality of information that each conveys >>Scrutinize financial reports for indicators of fraudulent reporting by analysis of trend, norm, and quarterly data >>Evaluate the likelihood of earnings management or other financial statement manipulation in situations involving business combinations, segmented reporting, employee compensation and benefits, derivatives, and special-purpose entities Internet for Investigations fsct 8520 The Internet consists of about ten billion pages of information, yet many investigators and analysts make only superficial use of this amazing resource. This course was designed for those who need to search more aggressively and use information more carefully than the general public. The intention of this course is to turn those who already have some computer and Internet experience into power users of the Internet and to reveal how the Internet can augment their traditional investigative methodology. It covers not only technical issues, but also includes how to formulate good search strategies and mine the invisible web. You develop and refine your search skills in the first half of the course. The second half introduces tools and techniques to make searchers more efficient, effective, and secure. The course concludes with module on cybercrime. >>Obtain open source information through the Internet relevant to investigations >>Trace websites and >>Protect your identity and the integrity of your systems and data while on-line >>Utilize a selective list of hundreds of high-value web sites relevant to investigators >>Assess information obtained via the Internet for accuracy and bias >>Wrest full value from open source information through media analysis >>Profile individuals from their blogs, newsgroup postings and messages >>Conduct limited searching of commercial on-line databases bcitforensics.ca 7

9 economic crime studies internet based studies >>Use link diagrams and other techniques to organize and analyze the information retrieved >>Understand how both criminals and law enforcement are using the Internet Asset Recovery fsct 8945 The recovery of misappropriated assets, or obtaining equivalent restitution, closes the circle of the fraud investigation process. After completing this course you will be able to list and describe the options available for this purpose, including criminal prosecution, insurance recovery, and civil litigation. You will also be able to discuss the circumstances in which each option would and would not be appropriate, and the advantages and disadvantages of each option. Finally, you will be able to identify the range of professional expertise required to effect asset recovery in local, national, and transnational fact situations. >>Discuss the options and remedies for asset recovery >>Determine cost and benefit factors considered in locating and recovering assets >>Discuss sources of information used to locate assets >>Plan a strategy for asset recovery considering location and legal jurisdictions >>Document and demonstrate the link of a located asset to the fraud Contact Information Program Office Centre for Forensic and Security Technology Studies British Columbia Institute of Technology 3700 Willingdon Avenue Burnaby, BC V5G 3H2 T F W bcitforensics.ca Program Coordinator Stephen Hollander, CGA, CFE Economic Crime Studies and Forensic Investigative Accounting Options T E Stephen_Hollander@bcit.ca 8 british columbia institute of technology

10 british columbia institute of technology 3700 willingdon ave burnaby, british columbia canada v5g 3h2 bcit.ca april 2008, mcd 5411