demonstrate your mastery of the following course outcomes:

ACC 691 Final Project Guidelines and Rubric
Overview
The final project for this course is the creation of a financial statement fraud case study analysis. The final product represents an authentic demonstration of
competency because cases of financial fraud continue to be exposed, and it is important for auditors to analyze these types of fraud schemes to increase their
awareness when performing audits. This will increase the probability of discovering fraud in financial statements and avoiding the harmful effects of fraud to
society.
For the final project, you will be provided with a case study to analyze through the Harvard Business Review, called Crisis at the Mill: Weaving an Indian
Turnaround. You are encouraged to put yourself in the place of the auditor as well as the stakeholders. You will consider the theoretical models of fraudulent
behavior, evaluate internal controls, assess fraud risk factors, and apply prevention and detection techniques. You will also analyze the overall responsibilities of
the auditors to organizational stakeholders while considering applicable auditing standards.
The project is divided into three milestones, which will be submitted at various points throughout the course to scaffold learning and ensure quality final
submissions. These milestones will be submitted in Modules Three, Five, and Seven. The final product will be submitted in Module Nine.
In this assignment, you will demonstrate your mastery of the following course outcomes:
 Evaluate the impact of fraud detection on an organization
 Evaluate internal controls for their role in maintaining reliability of financial reporting, compliance with regulations, and operating efficiency
 Examine how financial statement fraud schemes are carried out for informing detection and prevention methods
 Assess risk indicators for determining the occurrence of fraud in an organization
 Apply appropriate analytical, nonfinancial, and other fraud detection procedures for preparing recommendations to stakeholders
Prompt
Evaluate the Crisis at the Mill: Weaving an Indian Turnaround case of financial statement fraud to determine why it occurred, how it was carried out, how it was
discovered, what the auditor’s role was in the case, and what preventive controls could reduce the risk of this type of fraud.
Specifically, the following critical elements must be addressed:
I. Introduction: What company is the subject of the case? Describe the type of fraud that occurred.
II. Analysis of Fraud Scheme Type
A. Explain the process behind how frauds of this type are carried out. Provide a specific example illustrating fraud of this type.

B. In this type of fraud scheme, how and where do internal controls break down? Provide examples of specific internal controls needed to reduce
this type of fraud.
C. What are the risk factors when assessing this type of fraud? Consider classifying the risk factors using the theoretical model such as the Fraud
Triangle.
D. How can analytical procedures and other detection methods be applied to assess the risk of this type of fraud? Provide specific examples of the
analytical procedures and what they indicate.
E. Discuss the professional responsibilities of auditors in detecting fraud. What sort of impact can an audit have on an organization?
F. What evidence is needed to prove the fraud? Why?
III. Analysis of Fraud That Occurred
A. Who were the main participants? Why did the fraud occur? Be sure to discuss this in terms of theoretical models of fraudulent behavior.
B. Evaluate the company’s internal controls for their effectiveness in preventing fraud. Where were the weaknesses?
C. What were the red flags that signaled fraud was occurring? How did you discern whether or not these occurrences were legitimate transactions?
D. Through an examination of the case study, explain how the fraud was discovered. How could the methods used in this discovery inform future
investigations?
E. Discuss evidence that was gathered to support proof of the fraud and to comply with the auditing standard for gathering sufficient competent
evidence.
F. Examine the company’s financial statements. Perform ratio analysis and explain which results may indicate fraud.
G. Examine the company’s nonfinancial information, such as the management discussion and analysis (MD&A) section of the annual report.
Identify the possible presence of fraud and provide rationale for your findings.
H. What was the outcome of the fraud case and what happened to the key players? How could this inform stakeholders in preventing future
instances of fraud?
I. What preventive controls can be put in place to prevent this type of fraud from happening again? Why would these be the most effective
controls?
J. As an auditor, what recommendations would you make to company management to strengthen their internal control system? Be sure to
support your recommendations.
IV. Impact and Auditor Responsibility
A. What was the impact of this fraud case on the auditing profession (regarding each of the following perspectives)?

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  1. Professional (auditing standards)
  2. Legal
  3. Social
  4. Economic

Milestones
Milestone One: Introduction and Analysis of Fraud Scheme (Sections I and II)
In Module Three, you will submit a draft of the Introduction and the Analysis of Fraud Scheme Type sections (Sections I and II). You will introduce the subject of
the case as well as analyze the type of fraud scheme. This milestone will be graded with the Milestone One Rubric.
Milestone Two: Analysis of Fraud That Occurred (Section III, Parts A–H)
In Module Five, you will submit a draft of a portion of the Analysis of Fraud That Occurred section (Section III, Parts A–H). You will analyze the fraud that
occurred, including evaluating the company’s weaknesses and red flags, examining the financial statements and nonfinancial information, noting the outcome of
the case, and offering recommendations to strengthen internal controls. This milestone will be graded with the Milestone Two Rubric.
Milestone Three: Prevention, Impact, and Auditor Responsibility (Section III, Parts I and J and Section IV)
In Module Seven, you will submit a draft of the remaining portion of the Analysis of Fraud That Occurred section (Section III, Parts I and J) as well as the section
on Impact and Auditor Responsibility (Section IV). You will discuss what preventive controls can be put into place to prevent this fraud type from occurring again
as well as the recommendations you would make as an auditor to strengthen the company’s internal controls. Lastly, you will discuss the impact of the case on
auditing standards, as well as legal, social, and economic impacts. This milestone will be graded with the Milestone Three Rubric.
Final Submission: Financial Statement Fraud Case Study Analysis
In Module Nine, you will submit your final financial statement fraud case study analysis. It should be a complete, polished artifact containing all of the critical
elements of the final product. It should reflect the incorporation of feedback gained throughout the course. This submission will be graded with the Final
Project Rubric.
Deliverables
Milestone Deliverable Module Due Grading
One Introduction and Analysis of Fraud Scheme
(Sections I and II)
Three Graded separately; Milestone One Rubric
Two Analysis of Fraud that Occurred (Section III,
Parts A–H)
Five Graded separately; Milestone Two Rubric
Three Prevention, Impact, and Auditor
Responsibility (Section III, Parts I and J and
Section IV)
Seven Graded separately; Milestone Three Rubric
Final Submission: Financial Statement
Fraud Case Study Analysis
Nine Graded separately; Final Project Rubric
Final Project Rubric
Guidelines for Submission: Your financial statement fraud case study analysis should be 12–15 pages, double-spaced, with one-inch margins, 12-point Times
New Roman font, and APA 6th edition formatting.
Critical Elements Exemplary (100%) Proficient (90%) Needs Improvement (70%) Not Evident (0%) Value
Introduction Meets “Proficient” criteria and
description is exceptionally
clear and contextualized
Describes the subject of the
case and the type of fraud that
occurred
Describes the subject of the
case and the type of fraud that
occurred but description is
cursory or contains
inaccuracies
Does not describe the subject
of the case and the type of
fraud that occurred
3
Analysis of Fraud
Scheme Type: Process
Meets “Proficient” criteria and
uses industry-specific language
to establish expertise
Comprehensively explains the
process behind how frauds of
this type are carried out and
provides an example
illustrating fraud of this type
Explains the process behind
how frauds of this type are
carried out but does not
provide an example illustrating
fraud of this type or
explanation is cursory or
contains inaccuracies
Does not explain the process
behind how frauds of this type
are carried out
4.75
Analysis of Fraud
Scheme Type: Internal
Controls
Meets “Proficient” criteria and
demonstrates a nuanced
understanding of internal
controls and their capabilities
Evaluates how and where
internal controls break down in
terms of the type of fraud
scheme within the case study
and provides examples of
specific internal controls
needed to reduce this type of
fraud
Evaluates how and where
internal controls break down in
terms of the type of fraud
scheme within the case study
but does not provide examples
of specific internal controls
needed to reduce this type of
fraud or evaluation is cursory
or contains inaccuracies
Does not evaluate how and
where internal controls break
down in terms of the type of
fraud scheme within the case
study
4.75
Analysis of Fraud
Scheme Type: Risk
Factors
Meets “Proficient” criteria and
classifies the risk factors using
the theoretical model such as
the Fraud Triangle
Describes the risk factors when
assessing the type of fraud
within the case study
Describes the risk factors when
assessing the type of fraud
within the case study but
description is cursory or
contains inaccuracies
Does not describe the risk
factors when assessing the
type of fraud within the case
study
4.75

Analysis of Fraud
Scheme Type:
Procedures and
Methods
Meets “Proficient” criteria and
demonstrates a nuanced
understanding of analytical
procedures
Explains how analytical
procedures and other
detection methods could be
applied to assess the risk of the
type of fraud within the case
study and provides specific
examples of the analytical
procedures and what they
indicate
Explains how analytical
procedures and other
detection methods could be
applied to assess the risk of the
type of fraud within the case
study but does not provide
specific examples of the
analytical procedures and what
they indicate or explanation is
cursory or contains
inaccuracies
Does not explain how
analytical procedures and
other detection methods could
be applied to assess the risk of
the type of fraud within the
case study
4.75
Analysis of Fraud
Scheme Type:
Professional
Responsibilities
Meets “Proficient” criteria and
provides citations in support of
the discussion
Comprehensively discusses the
professional responsibilities of
auditors in detecting fraud and
the sort of impact an audit can
have on an organization
Discusses the professional
responsibilities of auditors in
detecting fraud but does not
discuss the sort of impact an
audit can have on an
organization or discussion is
not comprehensive or contains
inaccuracies
Does not discuss the
professional responsibilities of
auditors in detecting fraud
4.75
Analysis of Fraud
Scheme Type: Evidence
Meets “Proficient” criteria and
description is exceptionally
clear and contextualized
Describes what evidence is
needed to prove the fraud and
supports response
Describes what evidence is
needed to prove the fraud but
description is cursory or
contains inaccuracies or does
not support response
Does not describe what
evidence is needed to prove
the fraud
4.75
Analysis of Fraud That
Occurred: Main
Participants
Meets “Proficient” criteria and
determinations are well
supported and logical
Determines who the main
participants were and why the
fraud occurred in terms of
theoretical models of
fraudulent behavior
Determines who the main
participants were and why the
fraud occurred but not in
terms of theoretical models of
fraudulent behavior or
determination contains
inaccuracies
Does not determine who the
main participants were and
why the fraud occurred
4.75
Analysis of Fraud That
Occurred: Weaknesses
Meets “Proficient” criteria and
explains the significance of
each of the weaknesses
Accurately identifies the
weaknesses through an
evaluation of the company’s
internal controls
Identifies the weaknesses
through an evaluation of the
company’s internal controls
but contains inaccuracies
Does not identify the
weaknesses of the company’s
internal controls
4.75
Analysis of Fraud That
Occurred: Red Flags
Meets “Proficient” criteria and
explains the significance of
each red flag
Accurately determines the red
flags that signaled fraud was
occurring and provides
justification for how red flags
were discerned to be
legitimate transactions or not
Determines the red flags that
signaled fraud was occurring
but determination contains
inaccuracies or does not
provide justification for how
red flags were discerned to be
legitimate transactions or not
Does not determine the red
flags that signaled fraud was
occurring
4.75
Analysis of Fraud That
Occurred: Discovered
Meets “Proficient” criteria and
uses concrete examples to
substantiate claims
Explains how the fraud was
discovered and how the
methods used in this discovery
could inform future
investigations
Explains how the fraud was
discovered but does not
explain how the methods used
in this discovery could inform
future investigations or
explanation is cursory or
contains inaccuracies
Does not explain how the fraud
was discovered
4.75
Analysis of Fraud That
Occurred: Competent
Evidence
Meets “Proficient” criteria and
demonstrates a nuanced
understanding of the
importance of compliance
Discusses evidence that was
gathered to support proof of
the fraud and to comply with
the auditing standard for
gathering sufficient competent
evidence
Discusses evidence that was
gathered to support proof of
the fraud and to comply with
the auditing standard for
gathering sufficient competent
evidence but discussion is
cursory or contains
inaccuracies
Does not discuss what
evidence is needed to support
proof of the fraud
4.75
Analysis of Fraud That
Occurred: Financial
Statements
Meets “Proficient” criteria and
explains what each result of
ratio analysis indicates
Performs ratio analysis of
financial statements and
explains what information the
ratio results provide through
an examination of the
company’s financial
statements
Performs ratio analysis of
financial statements but does
not explain what information
the ratio results provide or
ratio analysis contains
inaccuracies
Does not perform ratio analysis 4.75
Analysis of Fraud That
Occurred: Nonfinancial
Information
Meets “Proficient” criteria and
provides examples of
nonfinancial measures and
explains what these examples
indicate
Identifies the possible
presence of fraud through an
examination of the company’s
nonfinancial information and
provides rationale for findings
Identifies the possible
presence of fraud through an
examination of the company’s
nonfinancial information but
identification contains
inaccuracies or does not
provide rationale for findings
Does not identify the possible
presence of fraud
4.75
Analysis of Fraud That
Occurred: Outcome
Meets “Proficient” criteria and
also discusses the outcome in
terms of lasting effects on the
company
Determines the outcome of
the fraud case, what happened
to the key players, and how
this could inform stakeholders
in preventing future instances
of fraud
Determines the outcome of
the fraud case and what
happened to the key players
but does not determine how
this could inform stakeholders
in preventing future instances
of fraud or description is
cursory or contains
inaccuracies
Does not determine the
outcome of the fraud case and
what happened to the key
players
4.75
Analysis of Fraud That
Occurred: Preventive
Controls
Meets “Proficient” criteria and
determinations are well
supported and logical
Determines the preventive
controls that could be put in
place to prevent this type of
fraud from reoccurring and
explains why these would be
the most effective controls
Determines the preventive
controls that could be put in
place to prevent this type of
fraud from reoccurring but
does not explain why these
would be the most effective
controls or determination is
cursory or contains
inaccuracies
Does not determine the
preventive controls that could
be put in place to prevent this
type of fraud from reoccurring
4.75
Analysis of Fraud That
Occurred:
Recommendations
Meets “Proficient” criteria and
uses scholarly research that is
aligned with proposed
recommendations
Proposes recommendations to
company management to
effectively strengthen their
internal control system with
support
Proposes recommendations to
company management but
recommendations would not
effectively strengthen their
internal control system or does
not provide support
Does not propose
recommendation to company
management
4.75
Impact and Auditor
Responsibility:
Professional
Meets “Proficient” criteria and
gives a specific example of the
implication on auditor
responsibilities
Evaluates the impact of the
fraud case on the auditing
profession from the
professional perspective
Evaluates the impact of the
fraud case on the auditing
profession from the
professional perspective but
evaluation is cursory or
contains inaccuracies
Does not evaluate the impact
of the fraud case on the
auditing profession from the
professional perspective
4.75
Impact and Auditor
Responsibility: Legal
Meets “Proficient” criteria and
gives a specific example of the
impact
Evaluates the impact of the
fraud case on the auditing
profession from the legal
perspective
Evaluates the impact of the
fraud case on the auditing
profession from the legal
perspective but evaluation is
cursory or contains
inaccuracies
Does not evaluate the impact
of the fraud case on the
auditing profession from the
legal perspective
4.75
Impact and Auditor
Responsibility: Social
Meets “Proficient” criteria and
provides a specific example of
the impact
Evaluates the impact of the
fraud case on the auditing
profession from the social
perspective
Evaluates the impact of the
fraud case on the auditing
profession from the social
perspective but evaluation is
cursory or contains
inaccuracies
Does not evaluate the impact
of the fraud case on the
auditing profession from the
social perspective
4.75
Impact and Auditor
Responsibility:
Economic
Meets “Proficient” criteria and
provides a specific example of
the impact
Evaluates the impact of the
fraud case on the auditing
profession from the economic
perspective
Evaluates the impact of the
fraud case on the auditing
profession from the economic
perspective but evaluation is
cursory or contains
inaccuracies
Does not evaluate the impact
of the fraud case on the
auditing profession from the
economic perspective
4.75
Articulation of
Response
Submission is free of errors
related to citations, grammar,
spelling, syntax, and
organization and is presented
in a professional and easy-toread format
Submission has no major
errors related to citations,
grammar, spelling, syntax, or
organization
Submission has major errors
related to citations, grammar,
spelling, syntax, or
organization that negatively
impact readability and
articulation of main ideas
Submission has critical errors
related to citations, grammar,
spelling, syntax, or
organization that prevent
understanding of ideas
2
Total 100%

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