Textbook Notes (368,566)
Canada (161,966)
Administration (1,247)
ADM4346 (10)
Chapter 5

Chapter #5.docx

5 Pages
56 Views
Unlock Document

Department
Administration
Course
ADM4346
Professor
Sheldon Weatherstone
Semester
Fall

Description
Chapter 5: Computer Fraud Common Threats to AIS • Natural Disasters and Terrorist Threats • Software Errors and/or Equipment Malfunction • Unintentional Acts (Human Error) • Intentional Acts (Computer Crimes) What Is Fraud? • Gaining an unfair advantage over another person o A false statement, representation, or disclosure o A material fact that induces a person to act o An intent to deceive o A justifiable reliance on the fraudulent fact in which a person takes action o An injury or loss suffered by the victim • Individuals who commit fraud are referred to as white-collar criminals. Forms of Fraud • Misappropriation of assets o Theft of a companies assets. o Largest factors for theft of assets:  Absence of internal control system  Failure to enforce internal control system • Fraudulent financial reporting o “…intentional or reckless conduct, whether by act or omission, that results in materially misleading financial statements” (The Treadway Commission). Reasons for Fraudulent Financial Statements • Deceive investors or creditors • Increase a company’s stock price • Meet cash flow needs • Hide company losses or other problems Treadway Commission Actions to Reduce Fraud • Establish environment which supports the integrity of the financial reporting process. • Identification of factors that lead to fraud. • Assess the risk of fraud within the company. • Design and implement internal controls to provide assurance that fraud is being prevented. SAS #99 • Auditors responsibility to detect fraud o Understand fraud o Discuss risks of material fraudulent statements  Among members of audit team o Obtain information  Look for fraud risk factors o Identify, assess, and respond to risk o Evaluate the results of audit tests  Determine impact of fraud on financial statements o Document and communicate findings  See Chapter 3 o Incorporate a technological focus The Fraud Triangle • Pressure o Work, family. • Opportunity o No control to catch them • Rationalization
More Less

Related notes for ADM4346

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit