Chapter 11 Flashcards
Using IT for Fraud Exam & Fin Forensics (27 cards)
What does an informational technology audit consist of:
- Planning
- Test of Controls
- Substantive Testing
General Framework for viewing IT risks and Controls
- IT ops, data management systems
- New system development & integration
- system maintenance
- System back up & Contingency planning
- Electronic Commerce
- Control over computer operations
- Big Data, Data Analytics, Computer aided Audit tools and techniques
- Application controls,: source docs, data coding, batch, validation, record, examination of application input system
- Processing Controls: Ensure processed data maintain s integrity as moves withing systems
- Output controls: Spooling, print programs, monitor waste, identify responsibility
IT Audits and Asurrance Activs
Black box approach vs White Box Approach
Black Box Approach:
- Develop understanding of system
- Test integrity of data & system
White Box Approach:
- System Walk Throughs
- authencity
- accuracy
- completeness
- redundancy
- access audit trail
- rounding error test
Shortcomings w/ IT audits and assurance
- IT personnel can collude to conceal fraud
- Professiona may susbtitute inapprop versionof software to change data
- Mus ensure entire control environment is examined
Shortcomings of Digital Evidence
- Files and docs can easily be given misleading or coded names and words encrypted
- Hard to get search warrant to gather evidence
- Must follow warrant details to properly execute and collect valid data
- Warrant and subpeona required to obtain digital evidence
Benefits of Digital Evidence
- Helps sift through and organize large amounts of evidence - w/ speed and accuracy
- Electronic imaging
- Computer forensics
- Help maintain good work paper
Tools Commonly used to Gather Digital Evidence
Road Masster & EnCase
RoadMasster:
- Portable computer forensic lab
- Acquire and Analyze electronic data
- Preview & image hard drives
- Completely remove & ERase stored files and programs from hard drives
EnCase
- Investigate & analyze electronic data in multiple plateforms
- Identify info despite efforts to hide, cloak, or delete data
- Manage large volumes of computer evidence
How to recover deleted files?
Deleted files are not removed from hard drive
- Until comp reuses space where file resides, the data in the file will remain intact
Defrag command
- reogranize hard drive for more efficient data storage
- may make deleted files unrecoverable
Undelete Software
- Search for clues about location of disk space where deleted file resides
- Examin unallocated disk space
How to recover deleted emails?
- Emails are stored in mail folders
- Each folder is a sep file
Prior to compaction, deleted emails may be recovered using software
E-discovery rules: require orgs to provide electronic files going back in time
- Probability of detailed email recovery is greatly enhance
Caveats of Restoring Data
- More sophisticated approach
- restoring lost file under more challenging circumstance
- Stop Writing to drive to increase recoverability
- High security or privacy software make harder to restoring files
- ## Manual restoration may be needed - Cost Benefit Analysis
Targeted approach for Detection in the Digital Env
- Examiner should consider more clearly defining the characteristics of data identified as anomolie
- May stratify preliminary results to identify subgroups more likely to be of concern
- Examiner may determing that a particular data analytics technqiue is not effective and data should examine diff
- Risk assessment necessary: identify major concerns and focus points
- Scope Limitation: Serve to focus and shape examination
Consider data sources and accuracy
Examples of Data extraction and Analysis Software Function
- Sorting
- Record selection and extraction
- Joining files
- Multifile processing
- Verify multiples of number
- Compliance verification
- Duplicate searches
- Horizontal and vertical ratio analysis
- DAte Functions
- Recalc
- Transac and balances exceeding expectation
Sales Analysis: Example of Queries
- Report of all system overrides and sales exception
- Returns and allowances by sotre
- Summarize trends by customer type, products, sales person
- Compare sales to outstanding receivables
- Generate correlation btw demand or supply and sales price
General ledger Analysis: Example Queries
- Select specific journal entries
- Actual to budget comp
- Analyze and confirm ledger accounts for legit transac
- Speed through reconciliation
- Calc fin ratio
- % ratios btw account
en Ledger analysis: Ex
Cash Disbursement Queries Examples
- Sumamrize cash disbursement by account, bank, dep, and vendor
- Verify audit trail for all disbursement by purchase order, dep, or vendor
- Generate vendor cash acativity summary analysis
- Identify disbusement by dep, supervisor approval, or amnt limits
Excel Use
Staple Analytical and presentation tool
- helps run benfords law test
Use of Idea Data Analysis Software
Interactive Data Extraction and Analysis
- Generalized audit software
- import diff file formats
- benfords law analuses
- Compare and recalc invoice
What is the Audit Control Language tool?
Audit analytics and continuous monitoring software
- Ensure int controls compliance
- Investigate and detect fraudulent activity
- Continuous auditing
- indep verification of transactional data
- helps with regulatory compliance
- held secure data access
Role of Graphics and Graphics Software in an investigation
- Investigative tool
- Identify holes
- Communicate investifative findings, conclusion and Result
4 types of graphics software
- Association matrix
- Link Charts
- Flow Diagrams
- Timeline
Use and function of Association Matrix
- Identifies Major Players who are central to an investigation
- Idenify linkages between players
- Starting point for reflecting important data in a simplified format
- Helps investigator visually see important links
Use and Function of a Link Chart
- More complex than assoc matrix
- Graphically represents important relationship between ppl businesses, and orgs
- Creates graphic rep of known and suspected associations involved in crim activ
Use and Function of Flow Diagrams
Analyze movement of events, activs and commodities
* Help discover meaning of activs and importance to the investigation
Use and Function of Timelines
Chronologically organize info about events or activs
- Helps determine what has or may occur and the impact the actions had
