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LECTURE 12 - AUIDITING FRAUD AND FORENSIC - Coggle Diagram
LECTURE 12 - AUIDITING FRAUD AND FORENSIC
“Any act involving the use of deception to obtain an illegal advantage”
(ISACA Irregularities and Illegal Acts Guideline 30)
Characteristic of Fraud
Asset misappropriation (85.7%)
Theft or misuse of company’s assets
Corruption (12.8%)
Misuse of personal power or position
Fraudulent financial statements (5.1% )
Misinterpreting organization’s assets and revenues
Responsibility to Prevent Fraud
Ethical tone at the top
Policy on computer use and abuse
Network security policy
Corporate fraud policy
Consequence
Bankruptcy
Legal suits
Terminated or forced to resign
Serve prison sentences
Fraud Prevention
Strong internal controls
Background checks on new employees
Ethics training for employees
Forensic Auditing
The use of computer technology to investigate fraud
Gathering evidence
Suspect identified
Working hypothesis developed
Obtain evidence
Careful plan and execution
Chain of custody critical
Freeze audit log
Seize computer