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    Chapter 5 computer Fraud is a guide to preventing and detecting computer 'raud and abuse. It explains the threats 'aced by modern in'ormation systems.

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    Chapter 5 computer Fraud is a guide to preventing and detecting computer 'raud and abuse. It explains the threats 'aced by modern in'ormation systems.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    273 views15 pages

    5 Computer Fraud

    Uploaded by

    ayutitiek
    Chapter 5 computer Fraud is a guide to preventing and detecting computer 'raud and abuse. It explains the threats 'aced by modern in'ormation systems.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    of 15

    Chapter 5

    Computer Fraud
    Copyright 2012 Pearson Education, Inc. publishing as Prentice all
    5!1
    "earning #b$ecti%es

    E&plain the threats 'aced by modern in'ormation


    systems.

    (e)ne 'raud and describe the process one 'ollo*s to


    perpetuate a 'raud.

    (iscuss *ho perpetrates 'raud and *hy it occurs,


    including+

    the pressures, opportunities, and rationali,ations that


    are present in most 'rauds.

    (e)ne computer 'raud and discuss the di-erent


    computer 'raud classi)cations.

    E&plain ho* to pre%ent and detect computer 'raud and


    abuse.
    Copyright 2012 Pearson Education, Inc. publishing as Prentice all 5!2
    Common .hreats to /I0

    1atural (isasters and .errorist .hreats

    0o't*are Errors and2or E3uipment 4al'unction

    5nintentional /cts 6uman Error7

    Intentional /cts 6Computer Crimes7


    Copyright 2012 Pearson Education, Inc. publishing as Prentice all 5!8
    9hat Is Fraud:

    ;aining an un'air ad%antage o%er another person

    / 'alse statement, representation, or disclosure

    / material 'act that induces a person to act

    /n intent to decei%e

    / $usti)able reliance on the 'raudulent 'act in *hich a


    person ta<es action

    /n in$ury or loss su-ered by the %ictim

    Indi%iduals *ho commit 'raud are re'erred to as *hite!


    collar criminals.
    Copyright 2012 Pearson Education, Inc. publishing as Prentice all 5!=
    Forms o' Fraud

    4isappropriation o' assets

    .he't o' a companies assets.

    "argest 'actors 'or the't o' assets+

    /bsence o' internal control system

    Failure to en'orce internal control system

    Fraudulent )nancial reporting

    >?intentional or rec<less conduct, *hether by act or


    omission, that results in materially misleading )nancial
    statements@ 6.he .read*ay Commission7.
    Copyright 2012 Pearson Education, Inc. publishing as Prentice all 5!5
    Aeasons 'or Fraudulent Financial
    0tatements
    1. (ecei%e in%estors or creditors
    2. Increase a companyBs stoc< price
    8. 4eet cash Co* needs
    =. ide company losses or other problems
    Copyright 2012 Pearson Education, Inc. publishing as Prentice all 5!D
    .read*ay Commission /ctions to Aeduce
    Fraud
    1. Establish en%ironment *hich supports the integrity o'
    the )nancial reporting process.
    2. Identi)cation o' 'actors that lead to 'raud.
    8. /ssess the ris< o' 'raud *ithin the company.
    =. (esign and implement internal controls to pro%ide
    assurance that 'raud is being pre%ented.
    Copyright 2012 Pearson Education, Inc. publishing as Prentice all 5!E
    0/0 FGG

    /uditors responsibility to detect 'raud

    5nderstand 'raud

    (iscuss ris<s o' material 'raudulent statements

    /mong members o' audit team

    #btain in'ormation

    "oo< 'or 'raud ris< 'actors

    Identi'y, assess, and respond to ris<

    E%aluate the results o' audit tests

    (etermine impact o' 'raud on )nancial statements

    (ocument and communicate )ndings

    0ee Chapter 8

    Incorporate a technological 'ocus


    Copyright 2012 Pearson Education, Inc. publishing as Prentice all 5!H
    .he Fraud .riangle
    Copyright 2012 Pearson Education, Inc. publishing as Prentice all 5!G
    .hree conditions that are
    present *hen Fraud occurs.
    Pressure
    4oti%ation or incenti%e to
    commit 'raud
    .ypes+
    1.Employee
    Financial
    Emotional
    "i'estyle
    2.Financial
    Industry conditions
    4anagement
    characteristics
    Copyright 2012 Pearson Education, Inc. publishing as Prentice all 5!10
    #pportunity
    Condition or situation that
    allo*s a person or
    organi,ation to+
    1.Commit the
    'raud
    2.Conceal the
    'raud
    "apping
    Iiting
    8.Con%ert the
    the't or
    misrepresentatio
    n to personal
    gain
    Copyright 2012 Pearson Education, Inc. publishing as Prentice all 5!11
    Aationali,ations
    Justi)cation o' illegal beha%ior
    1.Justi)cation
    I am not being
    dishonest.
    2./ttitude
    I donBt need to
    be honest.
    8."ac< o' personal
    integrity
    .he't is %alued
    higher than
    honesty or
    integrity.
    Copyright 2012 Pearson Education, Inc. publishing as Prentice all 5!12
    Computer Fraud

    /ny illegal act in *hich <no*ledge o' computer


    technology is necessary 'or+

    Perpetration

    In%estigation

    Prosecution
    Copyright 2012 Pearson Education, Inc. publishing as Prentice all 5!18
    Aise o' Computer Fraud
    1. (e)nition is not agreed on
    2. 4any go undetected
    8. igh percentage is not reported
    =. "ac< o' net*or< security
    5. 0tep!by!step guides are easily a%ailable
    D. "a* en'orcement is o%erburdened
    E. (iKculty calculating loss
    Copyright 2012 Pearson Education, Inc. publishing as Prentice all 5!1=
    Computer Fraud Classi)cations

    Input Fraud

    /lteration or 'alsi'ying input

    Processor Fraud

    5nauthori,ed system use

    Computer Instructions Fraud

    4odi'ying so't*are, illegal copying o' so't*are, using so't*are in an


    unauthori,ed manner, creating so't*are to undergo unauthori,ed
    acti%ities

    (ata Fraud

    Illegally using, copying, bro*sing, searching, or harming company


    data

    #utput Fraud

    0tealing, copying, or misusing computer printouts or displayed


    in'ormation
    Copyright 2012 Pearson Education, Inc. publishing as Prentice all 5!15

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