Welcome to your one-stop to pass all the Fraud and Forensic Accounting WGU C254 examinations in the WGU. If you have any anxiety about launching yourself into this module, don’t panic – you are in the right place. Intended as a step-by-step approach, this guide will make it easy for you to approach the course, achieve your goals, and pass the OA.Â
Well, to give you a comprehensive detail I want to assure you that in this article, we shall be covering all the possible sub-areas that may be required by anyone. In the first place, we shall outline what you are likely to come across in the module so that you have a clear idea of the directions you’ll need to devote time to. From there we shall proceed and offer you a detailed study guide to enable you to conquer the OA. We will also provide links to some extremely helpful outside sources that can extend your learning without putting a dent in your wallet. Of course, in each of these areas, we will address in detail the major issues that any successful strategy must consider – with cross-comparisons, examples, and supporting tables to help clarify the issues at hand. Last but not least, a conclusion will be made to draw together findings of the effects of foreign direct investment.Â
Therefore, if you are willing to emerge a champion in Fraud and Forensic Accounting C254 here are the ways we can help you.
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Navigating the World of Fraud and Forensic Accounting: What’s Ahead📖
WGU’s Fraud and Forensic Accounting C254 course teaches you all that you need to know to help you identify and deter fraud in financial statements. In this course, you will be introduced to ideas like ethical obligations, fraud audit, and legal issues, fraud risk map, and fraud prevention. Compared to other classes where students can perform hefty computations, this class is simplified to learning, realizing, and defining key points. Here the knowledge will be subjected to an objective assessment (OA), and your capacity to define these learning objectives unambiguously will come in handy.
Competency 1.1: Ethical Responsibility
In this competency, you are to expand your knowledge of the following issues of ethical concern: financial statement fraud. Potential ethical issues ensuing from preparing fraudulent financial statements The possibility of recognizing potential ethical issues The effects of fraudulent financial statements on stakeholders and the market The consequences attributable to fraud. The content is discussed in Chapter One under the following sections; 1-1. 7, and to this competency will be nine questions on the assessment. One must understand why frauds are committed and learn the fraud statistics necessary to succeed in this field.
Competency 1.2: Fraud Auditing and Legal Standards
This area of this assignment deals with the responsibility of an auditor for noticing fraud under different standards of auditing that include SAS 16, SAS 53, SAS 82, SAS 99, and AU-C240. You will also learn about the Sarbanes Oxley Act (SOX) and the role assigned to auditors. These areas are discussed in chapters 2 and 10 and you should expect the following sixteen questions on the assessment of this competency. Such standards and the role they play in relation to the auditors’ work are essential to comprehend in order to grasp this section.
Competency 1.3: Fraud Risk Assessment
Here, you will find a brief discussion of types of financial statement frauds and fraud risk assessment. Chapters 3 through 8 of this book are devoted to such subjects as revenue-related fraud, inventory fraud, liability understatement fraud, etc. There are twenty-four questions in this domain of the assessment and, therefore, it is crucial to know the symptoms and signals of each type of fraud.
Competency 1.4: Fraud Prevention
The last competency relates to setting up an ethical culture to combat fraud. Learn what to do if you want to recruit the right people who will not engage in fraudulent activities and ways in which an organization can nurture the right ethical standards. These topics are discussed in Chapters 9 and 10 respectively and eight of the questions on the assessment will test your knowledge about techniques for establishing and implementing proactive fraud prevention.
It is recommended that this course is completed after D215 and D217 have been satisfactorily completed as they form the background knowledge. Thus, if you are to concentrate on the learning objectives, you will be in a good stand to perform well in this course given that the key topics are heavily tested.
Step-by-Step Guide to Excel in WGU C254 Fraud and Forensic Accountingđź“ť
Here’s a structured study plan that will guide you week by week, ensuring you’re well-prepared for the objective assessment (OA) by the time you finish the course.
Week 1: Read the Textbook and Take Quizzes
Start by thoroughly reading the textbook, focusing on each chapter as outlined in the course. As you go through the material, make sure to:
- Attempt all module quizzes: These quizzes are crucial for reinforcing your understanding of the topics. After completing a module, immediately attempt the corresponding quiz to test your knowledge.
- Take short notes: While reading, jot down key points, concepts, and any information that seems particularly important. These notes will be invaluable when it comes time to review before the OA.
Week 2: Revise with Supplemental Materials
Now that you’ve covered the primary content, it’s time to solidify your understanding using supplemental materials:
- Study notes in “Course Chatter (Group Files)” and PowerPoints in Course Search: These resources will provide additional insights and explanations that can help clarify difficult concepts.
- Final Assessment Topic Review: Once you feel comfortable with the supplemental material, take the final assessment topic review found in Topic 11. This will help you gauge your understanding of the material covered so far.
Week 3: Focus on Pre-Assessment (Pre-A)
This week is dedicated to ensuring you’re fully prepared to take the OA:
- Retake the Pre-A until you score 80% or higher: The all-important thing is the ability to maintain a steady level of proficiency. In case you do not guess at least 80 % of the answers the first time around, go through the questions you got wrong and have another shot at it. This, I believe, the Pre-A will help to give you an idea of strengths and or areas of weakness
. - Fill knowledge gaps using the auto-generated coaching guide: At the end of each Pre-A, apply the coaching guide to assess where you stand in need of enhancement. Concentrate on these sensitive areas so that you leave nothing to chance in the OA.
Note: The Pre-A should not be taken until you have gone through all the lessons and scored at least 80% on each of the Topic Quizzes, including the Topic 11 Review. This checks that you are well-equipped and that everything that needs to be said or taught has been said or taught.
Week 4: Final Prep and OA
In the final week, your focus should be on reviewing and reinforcing your knowledge:
- Review course materials: Revise everything from the textbook, your notes, and any other material covered. To ensure that the information is fresh in your mind, retake the quizzes and those topic review sections.
- Take the OA with confidence: Go to the OA with a clear psychological attitude. Do not forget that the knowledge of why one answer is right or another wrong is the key to dealing with the exam. Take your time to read and understand every question that is presented to you before you proceed to answer any of them.
This approach is going to guarantee you go through all the content you need to study for the course and will make you ready and willing to conquer the C254 Fraud and Forensic Accounting course.
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Must-Read Resources for Fraud and Forensic Accounting đź“‚
If you want to follow the Fraud and Forensic Accounting C254 course to the letter, there are numerous outside tools one can use to clarify various topics. Below is a list of a few free resources that are accessible on the internet and can be useful for fixing the concepts and preparing for the exam.
Quizlet Flashcards
- C254 WGU Practice Review Flash Cards: The following flash cards are made specifically for this course C254 to enable you to revise all important terms and concepts in a very short time.
- C254 Fraud and Forensic Accounting Flash Cards: Another set of flashcards unique to the course, will assist you in revising different topics as you prepare for the OA.
YouTube Playlists
- Forensic Accounting Playlist: The following is a YouTube playlist comprised of different videos that teach students about forensic accounting: there are both audible and visual learning opportunities included. It is very useful for a review and to find some real-life examples of what has been taught in the course.
Udemy Course
- Forensic Accounting, Audit, Investigation, and Data Analytics: Oddly enough, even though Udemy is usually a paid platform, this course is great if you would like to take things a step further. It provides a general background to forensic accounting and other related fields which will go well with what you learn at WGU.
American Institute of Certified Public Accountants (AICPA) Fraud Resources
- AICPA Fraud Resources: The AICPA provides information on fraud in the form of case studies, articles, and other educational topics. These materials are ideal to use when you would like to advance your knowledge of ethics and laws as they apply to forensic accounting.
When used together with the course materials, the above resources will offer you a balanced approach to learning C254 Fraud and Forensic Accounting and enable you to perform well in your examination.
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OA Success Strategies for Fraud and Forensic Accounting👨🏻‍🏫
Now in this segment let us explore some of the most important topics that you MUST understand for the Fraud and Forensic Accounting C254 course. These topics are not just important for your basic knowledge of forensic accounting but are also often used in the OA section. Now let’s discuss every one of them in more detail.
- SAS 82 and SAS 99
SAS 82: Consideration of Fraud in a Financial Statement Audit
SAS 82 was the original standard that described how auditors should approach the consideration of fraud in an audit of financial statements. It brought the notion of risk of material misstatement due to fraud that the auditor was to identify the specific risks and the measures that were to be put in place to manage the identified risks.
SAS 99: Consideration of Fraud in a Financial Statement AuditSAS 99 supplanted SAS 82 and lengthened the provision for the auditors. It underlined prescriptions of requiring auditors to comprehend fraud risk considerations, for example, incentive/pressure, opportunity, and supporting attitude/rationalization elements. SAS 99 also necessitated that the auditors consider other fraud risks such as the risk of fraud risk by considering one or more account balances or classes of transactions, and the risk of management override of controls. This standard greatly improved the ability of the auditor the identify fraud.
Comparison of SAS 82 and SAS 99:
| Aspect | SAS 82 | SAS 99 |
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Focus
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The initial framework for fraud consideration in audits
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Expanded guidance on fraud risks and auditor responsibilities
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Risk Assessment
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Basic identification of fraud risk factors
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Detailed identification and brainstorming on fraud risk factors
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Documentation
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Required documentation of identified risks
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Emphasized documentation of risks and responses
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Management Override of Controls
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Not heavily emphasized
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Strong emphasis on the risk of management override |
Understanding the evolution from SAS 82 to SAS 99 is critical for comprehending how the auditing profession has adapted to better detect and address fraud.
- Types of Fraud
Revenue Fraud
This one practices inflating its revenues so as to give a perception of the good state of the company. Some of the methods include reporting sales that were not made, sheer falsehoods that portray high sales, and failure to record sales returns and allowances.
Overstatement of Assets
This one practices inflating its revenues so as to give a perception of the good state of the company. Some of the methods include reporting sales that were not made, sheer falsehoods that portray high sales, and failure to record sales returns and allowances.
Liability Fraud
Earnings management by increasing the value of liabilities – liability fraud misrepresents the actual state of affairs by not reporting or under-reporting organizational liabilities such that the company appears to be less leveraged than it is. This can be done by way of the off-balance sheet accounting or by means of low ball method where liabilities are omitted from the balance sheet or recorded at a lower value respectively.
COGS/Inventory Fraud
Fraud with reference to the Cost of Goods Sold (COGS) or inventory usually affects the quantity or the price of the inventory in order to increase the profit. Some of the methods include reporting an exaggerated ending inventory, underreporting the beginning inventory, or reporting a distorted figure for the cost of goods sold with the intention of altering the gross profit margin.
Comparison of Fraud Types:
| Fraud Type | Common Techniques | Impact on Financial Statements |
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Revenue Fraud
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Fictitious sales, delayed recording of returns
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Overstates revenue and profits
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Overstatement of Assets
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Inflated asset values, fictitious assets
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Overstates total assets and equity
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Liability Fraud
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Omitted liabilities, undervalued liabilities
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Understates total liabilities, overstates equity
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COGS/Inventory Fraud
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Overstated inventory, manipulated COGS
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Overstates gross profit and net income |
Mastering these types of fraud is crucial for understanding how financial statements can be manipulated and the red flags to look for during an audit.
- Five Aspects of the COSO Framework
The COSO framework is a widely recognized system used to design, implement, and assess internal control systems. Here are the five key components:
- Control Environment
The foundation of the framework, includes the integrity, ethical values, and competence of the organization’s people. It sets the tone of the organization, influencing the control consciousness of its employees. - Risk Assessment
The entity’s process for identifying and analyzing risks to achieving its objectives. It involves setting clear objectives and identifying factors that could prevent the achievement of these objectives. - Control Activities
The actions are established through policies and procedures that help ensure management directives are carried out. Examples include approvals, authorizations, verifications, reconciliations, and reviews of operating performance. - Information and Communication
Systems or processes that support the identification, capture, and exchange of information in a form and timeframe that enable people to carry out their responsibilities. - Monitoring Activities
Processes that assess the quality of internal control performance over time. This includes regular management and supervisory activities and other actions personnel take in performing their duties.
These five aspects work together to form a comprehensive internal control system that helps in preventing fraud.
- Basics of Sarbanes-Oxley (SOX)
The Sarbanes-Oxley Act also commonly known as SOX was passed by Congress following fraudulent scandals like Enron and WorldCom among others. It introduced significant changes to financial regulation with the following key elements:
- Creation of the Public Company Accounting Oversight Board (PCAOB)
The Public Company Accounting Oversight Board was created to solve the problem of supervising audits of public companies and to improve investors’ trust in corporate reports. - Section 302: Corporate Responsibility for Financial Reports
This section involves the preparation of a form in which at least the chief executive officer or any other senior officer of the company has to confirm the truthfulness of the statements in the financial report. - Section 404: Management Assessment of Internal Controls
This causes the companies to disclose the validity of their internal control structures for financial reporting and the auditor is responsible for signifying the truthfulness of this assertion. - Whistleblower Protections
A whistleblower is also protected in the event they report fraudulent activities, this is as provided by the SOX Act.
It is crucial to learn the simplest background of SOX to be able to know how it altered the roles of auditors, management, and corporate governance mechanisms to deter fraud.
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Final Thoughts on Fraud and Forensic Accountingđź“„
The Fraud and Forensic Accounting C254 course is a core component of your WGU program and provides you with the tools in order to identify and respond to fraudulent activities in financial statements. Thus, with the knowledge of basics like SAS 82 and 99, types of fraud, COSO framework, and key elements of the Sarbanes-Oxley Act, you will be ready to study the peculiarities of forensic accounting. This course is more than the basics and knowing who’s who, really focus on the “why” behind everything. The plan of study alongside additional resources and the most important sections provided in the guide will help you succeed in your objective assessment and become ready to apply this knowledge practically. Good luck, and happy studying!
