BU486 Study Guide - Final Guide: Ip Address Spoofing, Caller Id Spoofing, Email Spoofing
Document Summary
Caused by human carelessness, failure to follow established procedures, and poorly trained or supervised personnel. Intentional act such as computer crime, a fraud, or sabotage which is deliberate destruction or harm to a system. Fraud is gaining an unfair advantage over another person. Estimated 75-90% of perpetrators are knowledgeable insiders with the requisite access, skills, and resources. Fraud takes 2 forms: misappropriation of assets, fraudulent financial reporting. Misappropriation of assets is the theft of company assets. Most commonly caused by the absence of internal controls and/or failure to enforce existing internal controls. Most frequently used schemes involve inflating revenues, holding the books open, closing the books early, overstating inventory or fixed assets, and concealing losses and liabilities. Four actions to reduce fraudulent financial reporting: Misappropriate is 17 times more likely, the $ amounts involved are much smaller. 99 the auditor"s responsibility to detect fraud: auditors must: Discuss the risks of material fraudulent misstatements. Evaluate the results of their audit tests.
