Professional Documents
Culture Documents
Computer Fraud
Copyright 2012 Pearson Education
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Learning Objectives
Explain the threats faced by modern information systems. Define fraud and describe the process one follows to perpetuate a fraud.
Discuss who perpetrates fraud and why it occurs, including: the pressures, opportunities, and rationalizations that are present in most frauds.
Define computer fraud and discuss the different computer fraud classifications. Explain how to prevent and detect computer fraud and abuse.
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What Is Fraud?
Gaining an unfair advantage over another person
A false statement, representation, or disclosure A material fact that induces a person to act An intent to deceive
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Forms of Fraud
Misappropriation of assets
Theft of a companies assets. Largest factors for theft of assets: Absence of internal control system
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Establish environment which supports the integrity of the financial reporting process.
Identification of factors that lead to fraud. Assess the risk of fraud within the company. Design and implement internal controls to provide assurance that fraud is being prevented.
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SAS #99
Auditors responsibility to detect fraud
Understand fraud Discuss risks of material fraudulent statements Among members of audit team
Obtain information
Look for fraud risk factors Identify, assess, and respond to risk Evaluate the results of audit tests
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Pressure
Motivation or incentive to commit fraud Types:
1. Employee
Financial Emotional Lifestyle
2. Financial
Industry conditions Management characteristics
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Opportunity
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Rationalizations
1.Justification
I am not being dishonest.
2.Attitude
I dont need to be honest.
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Computer Fraud
Any illegal act in which knowledge of computer technology is necessary for:
Perpetration Investigation
Prosecution
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4.
5. 6. 7.
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Processor Fraud
Unauthorized system use
Data Fraud
Illegally using, copying, browsing, searching, or harming company data
Output Fraud
Stealing, copying, or misusing computer printouts or displayed information
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