Kế toán, kiểm toán - Chapter 5: Computer fraud

Chapter 5Computer FraudCopyright © 2012 Pearson Education5-1Learning ObjectivesExplain 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.Copyright © 2012 Pearson Education5-2Common Threats to AISNatural Disasters and Terrorist ThreatsSoftware Errors and/or Equipment MalfunctionUnintentional Acts (Human Error)Intentional Acts (Computer Crimes)Copyright © 2012 Pearson Education5-3What Is Fraud?Gaining an unfair advantage over another personA false statement, representation, or disclosureA material fact that induces a person to actAn intent to deceiveA justifiable reliance on the fraudulent fact in which a person takes actionAn injury or loss suffered by the victimIndividuals who commit fraud are referred to as white-collar criminals.Copyright © 2012 Pearson Education5-4Forms of FraudMisappropriation of assetsTheft of a companies assets.Largest factors for theft of assets:Absence of internal control systemFailure to enforce internal control systemFraudulent financial reporting“intentional or reckless conduct, whether by act or omission, that results in materially misleading financial statements” (The Treadway Commission).Copyright © 2012 Pearson Education5-5Reasons for Fraudulent Financial StatementsDeceive investors or creditorsIncrease a company’s stock priceMeet cash flow needsHide company losses or other problemsCopyright © 2012 Pearson Education5-6Treadway Commission Actions to Reduce FraudEstablish 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.Copyright © 2012 Pearson Education5-7SAS #99Auditors responsibility to detect fraudUnderstand fraudDiscuss risks of material fraudulent statementsAmong members of audit teamObtain informationLook for fraud risk factorsIdentify, assess, and respond to riskEvaluate the results of audit testsDetermine impact of fraud on financial statementsDocument and communicate findingsSee Chapter 3Incorporate a technological focusCopyright © 2012 Pearson Education5-8The Fraud TriangleCopyright © 2012 Pearson Education5-9Three conditions that are present when Fraud occurs.Pressure Motivation or incentive to commit fraudTypes:EmployeeFinancialEmotionalLifestyleFinancialIndustry conditionsManagement characteristicsCopyright © 2012 Pearson Education5-10Opportunity Condition or situation that allows a person or organization to:Commit the fraudConceal the fraudLappingKitingConvert the theft or misrepresentation to personal gainCopyright © 2012 Pearson Education5-11RationalizationsJustification of illegal behaviorJustificationI am not being dishonest.AttitudeI don’t need to be honest.Lack of personal integrityTheft is valued higher than honesty or integrity.Copyright © 2012 Pearson Education5-12Computer FraudAny illegal act in which knowledge of computer technology is necessary for:PerpetrationInvestigationProsecutionCopyright © 2012 Pearson Education5-13Rise of Computer FraudDefinition is not agreed onMany go undetectedHigh percentage is not reportedLack of network securityStep-by-step guides are easily availableLaw enforcement is overburdenedDifficulty calculating lossCopyright © 2012 Pearson Education5-14Computer Fraud ClassificationsInput FraudAlteration or falsifying inputProcessor FraudUnauthorized system useComputer Instructions FraudModifying software, illegal copying of software, using software in an unauthorized manner, creating software to undergo unauthorized activitiesData FraudIllegally using, copying, browsing, searching, or harming company dataOutput FraudStealing, copying, or misusing computer printouts or displayed informationCopyright © 2012 Pearson Education5-15