...ACCOUNTING INFOMRATION SYSTEM TABLE OF CONTENT INTRODUCTION ............................................................................................................................................. 2 FRAUD ........................................................................................................................................................... 3 Internal Fraud ........................................................................................................................................... 3 Procurement fraud.................................................................................................................................... 4 Online safety ............................................................................................................................................. 5 Cheque Fraud ............................................................................................................................................ 5 INTRODUCTION OF COMPUTER VIRUS TO THE SYSTEM .............................................................................. 7 UNINTENTIONAL ACTS/MISTAKES. ............................................................................................................... 7 CONCLUSION................................................................................................................................................. 8 REFERENCES ......................................................................
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...becoming more prevalent. Security breaches and data disclosure increasingly arise from criminal behavior motivated by financial gain. 2. Suppose your business had an e-commerce Web site where it sold goods and accepted credit card payments. Discuss the major security threats to this website and their potential impact. What can be done to minimize these threats? E-commerce utilizes internal networks that interface with the World Wide Web. The nature of this kind of business, introduces internal and external risks to both the website and the business systems to which it is connected too. An E-commerce website can be faced some security threats that have to be addressed, to avoid any losses and intrusions. E-commerce websites are vulnerable to fraud from internal and external sources. Fraud incidents include credit card fraud, which exposes the website to threat from clients and any other external sources and internal fraud. Any fraudulent transactions being entered into the system from employees. Such transactions can also be introduced into the system by hackers or Trojan Horses, which resemble the real customers’ transactions. To prevent fraud, Fraud scoring must be used. It is a system of predictive fraud detection models or...
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...TABLE OF CONTENT Introduction 2 Threats 2 • State-sponsored espionage and sabotage of computer networks 2 • Monster DDoS attacks 2 • The loss of visibility and control created by IT consumerization and the cloud 2 • The password debacle 3 • The insider threat 3 UAE CASE 3 Precaution 4 Conclusion 4 Bibliography 5 Introduction As the requirement of the paper I will explain the types of fraud may face by the organisation computer networks. Along with I will discuss two cases of such fraud in UAE and finally I will discuss possible precautions to mitigate the risk of such frauds. In recent year the computer network threats become technically more advanced, sophisticated, more organised and at the same time difficult to detect. It is important to mention that these attacks not only damage network security for financial frauds but this also aim to disable and reliability of the infrastructure as well, which may cause worse type of threat to the national security. (Tom Cross and Eric Savitz, Forbes Staff, 2012) Threats Most respected financial magazine FORBES has mentioned five main security threats to the computer networks which includes. • State-sponsored espionage and sabotage of computer networks o In 2012 a very famous virus called Flame was discovered which was not traced by the software in years. Similarly virus named Shamon destroyed the data of oil and energy companies and made the machines unbootable. • Monster DDoS attacks o DDos stands for the...
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...There are numerous threats to auditor independence. Derived from Porter, Et Al (2014) - Firstly, Self-interest threat which are dangers that emerge from auditors acting to their own interest. Auditors may support, intentionally or intuitively, those self-intrigues over their enthusiasm for performing a quality review. The auditors’ relationship with bluebird limited creates a financial self-interest because they pay the auditors’ fees. Auditors also have a financial self-interest if they own stock in an auditee; as I have just inherited a 3% shareholding in bluebird, the quality of the audit may be lacking as a financial self interest may be obtained by me, for example excluding some pieces of vital information from the audit to serve my own financial interests. Another kind of threat, known as Self-review may be brought about. These are threats that emerge from inspectors inspecting their own particular work or the work done by others in their firm. It might be harder to assess without predisposition one's own particular work, or that of one's firm, than the work of another person or of some other firm. As the auditor has a 3% shareholding in bluebird, a self-review threat may arise if I was to review judgements and decisions I, or others within the firm, have made. Familiarity (or trust) threats are threats that emerge from auditors being impacted by a close association with an auditee. Such a risk is available when auditors are not adequately suspicious of an auditee's...
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...Curbing Fraud Through Risk Assessments Abstract The purpose of this paper is to discuss the psychology behind why people commit fraud and how a risk assessment can be used to mitigate fraud and risk towards a given organization. The risk assessments portion of the paper will discuss areas such as a process for an effective fraud risk assessment which includes defining a risk scope, risk treatments (acceptance, avoidance, transfer, mitigate, or a combination approach), and most importantly risk monitoring and review through controls. The paper then discusses in detail the importance of proper risk modeling then finished with an analysis on an actual fraudulent activity around the abuses with SNAP benefits. Risk Assessments: Merriam-Webster defines fraud as the “intentional perversion of truth in order to induce another to part with something of value or to surrender a legal right.” Some type of fraud scheme or business exploit is in the news headlines every day. Anything from employees stealing money out of cash register to multibillion dollar pyramid schemes is seeming becoming a common segment on the news right next to this week’s weather forecast. The opportunity for a common person or company to fall victim to fraud is paramount. Often times a business simply doesn’t know where their most susceptible operations reside. This limitation causes billions of dollars of fraud to commence every year, and often times the company won’t know they aren’t being scammed until it’s...
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...Electoral Malpractices Electoral fraud is illegal interference with the process of an election. Acts of fraud affect vote counts to bring about an election result, whether by increasing the vote share of the favored candidate, depressing the vote share of the rival candidates, or both. Many kinds of election fraud are outlawed in electoral legislation, but others are in violation of general laws, such as those banning assault, harassment or libel. Although technically the term 'electoral fraud' covers only those acts which are illegal, the term is sometimes used to describe acts which are legal but nevertheless considered morally unacceptable, outside the spirit of electoral laws, or in violation of the principles of democracy. Show elections, in which only one candidate can win, are sometimes considered to be electoral fraud, although they may comply with the law. The Election System: Structural Problems India is a Republic composed of 28 States and 7 Union Territories and governed by the constitution adopted in 1950. The Parliament consisting of the Upper House with 245 members and the Lower House with 545 members is the supreme law making body. The Lower House members are directly elected through universal adult franchise every five years unless the government loses its majority and mid-term elections have to be called. A similar structure exists at the State level where the Chief Minister and the Council of Ministers reign supreme. A three-tiered Panchayati Raj System,...
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...2. The Consent (continuare) As you know the juridical act, is the expression of smbdy's will meant to produce legal effects. From a juridical point of view, the juridical will of the parties is a complex issue. It is composed by two elements: - the consent; - the consideration. The consent means the externalized decision or intent to conclude a contract. In order to be valid, the consent must fulfill several conditions as follows; 1. To be expressed by person who is mentally capable to conclude the act. It means that the parties must have judgment or discernment, must be able to understand the nature of the act and its consequences. A pers that has a full concrete capacity is presumed by law to have judgment or discernment. This legal presumption may be overruled by proving the temporary lack of judgment of the person in question, as for example for temporarily mental illness, or influence of drugs. You can find this in the civil code Art. 1205 paragraph 1 2. To be expressed by a pers. who has the intention to produce legal effects. This condition is not fulfilled when for example the pers. Is only kidding, he has no real intention to conclude a contract – informal bet. 3. To be externalized. It means that the consent must result from the words or even the actions of the parties. In this respect several problems arise in case of silence. Generally in our law the consent cannot be implied and therefore in case of silence it is considered that there is no consent...
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...institutions use to carry out research, communicate and innovate. Even through this evolution has brought many benefits but also it has also brought serious threats such as cyber-attacks that has been demonstrated over the past few years through acts of cyber espionage and cyber-crime through the virtual space. In this context, the University of Dar es Salaam needs to develop policies towards cyber threats even through this has often be clustered and fragmented. Using theoretical and conceptual models this paper provides an informed understanding and critical assessment of the University of Dar es Salaam cyber security policy through addressing the following research questions: What are the IT risk management policy and systems that can be developed for the University of Dar es salaam? The primary data is collected through surveys, and interviews that are open ended and close ended. The results of the paper demonstrated that colleges and universities have been a target for cyber-attacks due to the fact that of the vast amount of computing power they possess, and they provide open access to their constituents and to the public. The research also showed that University of Dar es Salaam doesn’t have a comprehensive IT security risk management policy or guidelines that will guide the business process in the event of an IT security threat. Therefore the University needs to develop policiesthat provide roadmap for effectively protecting the availability, integrity and confidentiality of University...
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...Audit Week 2: Financial Statement Audits, Financial Statement Assertions and Audit Evidence Financial Statement Audit * A systematic process of objectively obtaining and evaluating evidence regarding assertions about the economic actions and events to ascertain the degree of correspondence between assertions and established criteria * Purpose: To enhance the degree of confidence of intended users in the financial statements by the expression of an opinion by the auditor Overall Objectives of the Auditor: * To obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, thereby enabling the auditor to express an opinion on whether the financial statements are prepared, in all material aspects, in accordance with an applicable financial reporting framework * To report on the financial statements and communicate in accordance with the auditor’s findings Audit Process Overview: * Step 1: Client Acceptance and Retention * Step 2: Risk Assessment (Through understanding client business environment and operations Assess risks of material misstatement Assess Audit Risk) * Step 3: Audit Procedures Planning * Step 4: Test of controls (IF reliance on controls) * Step 5: Perform substantive tests * Step 6: Audit Completion and Reporting Financial Statement Assertions: * Assertions are representations made by management, explicit or otherwise, that are embodied in...
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...Topic : CREDIT CARD FRAUDS Problem Statement : Analyse the effect of credit card frauds in today’s era of globalization Hyphothesis : Credit card fraud could damage the economy in the long run Research questions : 1)What are the different types of frauds 2)How fraudsters attempt to take advantage of loopholes 3)What are the impact of credit card fraud on card holders, merchants, issuers INTRODUCTION As for in today’s business environment, Credit Card Fraud has became one of the biggest threats to business establishments t. However, to fight the fraud effectively, it is important to first understand the mechanisms of executing a fraud. Credit card fraudsters employ a large number of techniques to commit fraud. In simple terms, Credit Card Fraud is defined as: When an individual uses another individuals’ credit card for personal reasons while the owner of the card and the card issuer are not aware of the fact that the card is being used. Further, the individual using the card has no connection with the cardholder or issuer, and has no intention of either contacting the owner of the card or making repayments for the purchases made. Credit card frauds are committed in the following ways: * An act of criminal deception (mislead with intent) by use of unauthorized account and/or personal information * Illegal or unauthorized use of account for personal gain * Misrepresentation of account information to obtain goods and/or services...
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...person responsible for keeping the members’ register or the register of debenture-holders of the company. a) b) c) d) e) f) g) Question 2 : For professional accountants in public practice, what are the circumstances that are likely to pose a conflict of interest with the client? Conflict of interest often arises in situation when a professional accountant in public practice competes directly with the client or is in business relationship with a major competitor of the client. Conflict of interest is also likely to arise when a professional accountant performs services for clients who are in dispute with each other or whose interests are in conflict. Question 3 : For each of the following situations, discuss whether it creates a threat to professional independence. What safeguards would you suggest? a) Heng, a sole proprietor in public practice, plans to establish a separate department that will provide internal audit services to her audit clients. Heng is a sole proprietor and this means he shall not have large capital base to reject clients nor does he has adequate staff force to rotate...
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...Threats to Computer Security Source: An Introduction to Computer Security: The NIST Handbook National Institute of Standards and Technology Technology Administration U.S. Department of Commerce Special Publication 800-12 Computer systems are vulnerable to many threats that can inflict various types of damage resulting in significant losses. This damage can range from errors harming database integrity to fires destroying entire computer centers. Losses can stem, for example, from the actions of supposedly trusted employees defrauding a system, from outside hackers, or from careless data entry clerks. Precision in estimating computer security-related losses is not possible because many losses are never discovered, and others are "swept under the carpet" to avoid unfavorable publicity. The effects of various threats varies considerably: some affect the confidentiality or integrity of data while others affect the availability of a system. 1. Errors and Omissions Errors and omissions are an important threat to data and system integrity. These errors are caused not only by data entry clerks processing hundreds of transactions per day, but also by all types of users who create and edit data. Many programs, especially those designed by users for personal computers, lack quality control measures. However, even the most sophisticated programs cannot detect all types of input errors or omissions. A sound awareness and training program can help an organization reduce the number and severity...
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...Introduction David S. Wall, author of Cybercrime: The Transformation of Crime in the Information Age, once said, “In a nutshell, we are shocked by cybercrime, but also expect to be shocked by it because we expect it to be there, but – confusingly – we appear to be shocked if we are not shocked (if we don’t find it)!” In today’s society, cybercrimes are considered a greater threat than ever. Computer crime can be defined as a crime that is committed where the computer or electronic data device is integral to the criminal act (Kranacher, Riley, and Wells 114). Although many do not believe that they can cause any vital damage, cybercrimes such as wiretapping, piggybacking, and computer viruses can have significant repercussions on various organizations. By identifying the type of cybercrime, discussing how organizations can protect themselves from it, and multiple real-life examples, an insightful analysis of the implications of cybercrime can be better understood. Wiretapping Wiretapping has become a very common way of committing computer fraud. This occurs when perpetrators read information being transmitted between an organization’s computers. In order to decrease this, companies can implement various encryption techniques to help ensure that confidential information does not reach the hands of a person who can use it with malicious intent (Kranacher, Riley, and Wells 120-21). This information that is obtained could be pertaining to an organization’s consumers, employees...
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...effect society these crimes put a major strain on the criminal justice system as well as the professionals within this system. Kidnapping is the act of removing an individual(s) through intimidation, threat(s) fraud or force from the place for which he or she is found. Kidnapping invades one`s privacy as well as disrupts his or her freedom. Kidnapping also considered a form of aggravated false imprisonment because of the moving and hiding an individual(s). Early common law says that abduction by force and transporting of individual(s) out of his or her country created an act of kidnapping. In today`s judicial system kidnapping cases look more upon the degree of movement in regard to the distance that the abductor(s) forcefully moved an individual(s) Movement must involve substantial amount of distance. For example, forcing an individual out of one`s way or even moving an individual across the street is not looked upon as kidnapping in the criminal justice system (Schmalleger, 2010). False imprisonment also known as fake arrest is very similar to kidnapping except that false imprisonment lacks the moving or the taking away of the individual(s) to another location by the abductor(s). False imprisonment is basically restraining, abducting, and forcing another by way of threat against his or her will without lawful authority. Even though false imprisonment is a serious crime many states...
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...to forge checks payable to her own name. According to the 2010 Report to the Nations on Occupational Fraud and Abuse the perpetrator committed fraud by an asset misappropriation scheme in which the perpetrator steals or misuses an organization’s resources. Asset misappropriation is broken down into some sub-schemes like skimming, cash larceny, billing, expense reimbursement, check tampering. She was a well-trusted employee and even had previously caught other employees involved in embezzlement and frauds. So there was no reason to expect her of committing a fraud, costing the Company $204,000.00. In the Reports to the Nations study, the average organization annually loses were 5 % of its revenues due to fraud. This is an important topic and individuals have been committing these acts for as long as records have been kept. It is important to implement fraud programs to help reduce or eliminate fraud loses. One of the major things the Company could do to help prevent any future fraudulent activities is start educating the employees on preventing and detecting fraud. Employees should be trained in what constitutes fraud, how it hurts everyone in the company and how to report any questionable activities. According to the Report to the Nations on Occupational Fraud and Abuse organizations that have anti-fraud training for employees and managers experience lower fraud losses. Another thing that the Company could do is start utilizing surprise audits. The case...
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