Lesson 1: Introduction to Forensic Accounting: Understanding Fraud & Financial Manipulation

• What is forensic accounting?
• What is the difference between an accounting error and fraud?
• Why do individuals commit financial fraud?
• What is the Fraud Triangle?
• How do weaknesses in internal controls create opportunity for manipulation?

• Forensic accounting
• Fraud
• Error
• Fraud Triangle
• Pressure
• Opportunity
• Rationalization
• Internal controls
• Financial manipulation
• Ethical responsibility

B. Accounting Principles: Identify and describe GAAP principles and explain how application impacts financial reporting.

C. Accounting Process: Analyze how transactions and estimates impact financial statements.

Students strengthen mathematical reasoning and analytical comparison skills by evaluating structural differences in business models and financial statement impact.

Description:

Students explore the definition of forensic accounting and discuss the responsibilities of accountants, auditors, and investigators in identifying fraud.

Purpose:

This lesson introduces forensic accounting as the investigative branch of accounting. Students examine why fraud occurs and how manipulation can distort financial reporting.

DOK 1: Define forensic accounting terminology.
DOK 2: Differentiate between error and fraud.
DOK 3: Analyze fraud risk factors using the Fraud Triangle.

Students explore how financial fraud affects investors, employees, communities, and retirement savings.

Fraud always involves large corporations.

• Visual diagram of Fraud Triangle
• Small group scenario analysis
• Guided case discussion
• Structured error vs fraud comparison chart
• Short reflection prompts
• Scaffolded notes
• Spanish vocabulary support for ELL students

• Fraud Triangle analysis worksheet
• Error vs fraud classification activity
• Exit ticket explaining one factor that increases fraud risk
• Short written response connecting internal controls to fraud prevention

• Century 21, Accounting, General Journal, 11th edition
• News article excerpts or teacher-created fraud scenarios
• Fraud Triangle diagram
• Scenario analysis worksheet
• Class notes, Do Now, Exit Tickets
• Projector for guided discussion