week 10 - Ch5_computer_fraud_security

Week 10- - Networks Computer Security and Fraud Networks and Chapter 5 ACC 5130 1 INTRODUCTION Companies face four types of threats to their

Info iconThis preview shows pages 1–11. Sign up to view the full content.

View Full Document Right Arrow Icon
1 Networks, Computer Security and Fraud Networks and Chapter 5 ACC 5130
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
2 INTRODUCTION Companies face four types of threats to their information systems: 1. Natural and political disasters 2. Software errors and equipment malfunction 3. Unintentional acts 4. Intentional acts (computer crime)
Background image of page 2
3 Fraud Fraud is any and all means a person uses to gain an unfair advantage over another person. In most cases, to be considered fraudulent, an act must involve: 1. A false statement (oral or in writing) 2. About a material fact 3. Knowledge that the statement was false when it was uttered (which implies an intent to deceive) 4. A victim relies on the statement 5. And suffers injury or loss as a result
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
4 The Fraud Process Fraud against companies may be committed by an employee or an external party. Former and current employees (called knowledgeable insiders ) are most likely to perpetrate frauds. understand the company’s systems understand the company’s weaknesses Organizations utilize controls to make fraud difficult
Background image of page 4
5 Who commits Fraud? White-collar criminals Profile is more like general public than typical criminals
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
6 Three types of occupational fraud 1. Misappropriation of assets Involves theft, embezzlement, or misuse of company assets for personal gain. 2. Corruption Involves the wrongful use of a position, contrary to the responsibilities of that position, to procure a benefit. 3. Fraudulent statements Misstating the financial condition of an entity by intentionally misstating amounts or disclosures in order to deceive users.
Background image of page 6
7 Preventing Fraud The Treadway Commission recommended four actions to reduce fraudulent financial reporting: 1. An organizational environment that contributes to the integrity of the financial reporting process. 2. Identify and understand the factors that lead to fraudulent financial reporting. 3. Assess the risk of fraudulent financial reporting within the company. 4. Design and implement internal controls to provide reasonable assurance that fraudulent financial reporting is prevented.
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
8 Auditor’s Role SAS-99, issued in December 2002, requires auditors to: 1. Understand fraud 2. Discuss the risks of material fraudulent misstatements 3. Obtain information 4. Identify, assess, and respond to risks 5. Evaluate the results of their audit tests 6. Communicate findings 7. Document their audit work 1. Incorporate a technology focus
Background image of page 8
9 The “Fraud Triangle” Pressure Opportunity Rationalization
Background image of page 9

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
10 Fraud Triangle: Conditions 1. Pressure “perceived non-shareable need” could be related to finances, emotions, lifestyle, or some combination 2. Opportunity the opening or gateway that allows an individual to 3. Rationalization maintain their self image as principled individuals is to create rationalizations that recast their actions as “morally acceptable” behaviors.
Background image of page 10
Image of page 11
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 01/28/2011 for the course ACC 5130 taught by Professor Schmidt during the Fall '10 term at Wayne State University.

Page1 / 40

Week 10- - Networks Computer Security and Fraud Networks and Chapter 5 ACC 5130 1 INTRODUCTION Companies face four types of threats to their

This preview shows document pages 1 - 11. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online