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Auditing Fraud and Forensic - Coggle Diagram
Auditing Fraud and Forensic
Understanding fraud
Why fraud Occur
Any act involving the use of deception to obtain an
illegal advantage.
Fraud Triangle
Rationalization
justify theft
Perceived Pressure
personal circumstances
Opportunity
insufficient internal controls
Major Fraud Studies
KPMG Fraud Study
COSO Fraud Studies
Wells Report
Responsibility to prevent fraud
Proactive positive security model vs negative security model- understand risks and threats
Positive security model
Ethical tone at the top
Management commitment
Policy on computer use and abuse
Lending of laptops to others
Network security policy
To protect corporate network
Corporate fraud policy
Whistle blower protection
Consequence
Bankruptcy, legal suits, terminated or forced to resign, serve prison sentences
Fraud Prevention
Strong internal controls
Regular audit
Establish fraud policies
Forensic auditing
Computer forensics - The use of computer technology
to investigate fraud
Gathering evidence
Interviewing
Invigilation
Indirect financial profile
Forensic auditing allows auditors to retrieve deleted
data and files, even after those files have been deleted
Characteristic of Fraud
Asset misappropriation
Theft or misuse of company's assets
Larceny or stealing
Skimming schemes
Fraudulent disbursement schemes
Corruption
Misuse of personal power or position
Personal gain, ignoring fiduciary duty to employer
Fraudulent financial statements
Financial and non-financial
Misinterpreting organization's assets and revenues
Misinterpreting organization's expenses and liabilities