UNIVERSITAS TARUMANAGARA

Fakultas Ekonomi dan Bisnis – Magister Akuntansi

EA73015 – Sistem Informasi dan Pengendalian Internal
Prepared by: Dr. Julisar., SE., Ak., MM., CA
Chapter 5 - Computer Fraud
SESSION 01
Accounting Information Systems
Fourteenth Edition, Global Edition

Chapter 5
Computer Fraud

Copyright © 2018 Pearson Education, Ltd. All Rights Reserved

 Learning Objectives
• Explain the threats faced by modern information systems.
• Define fraud and describe both the different types of fraud
and the auditor’s responsibility to detect fraud.
• Discuss who perpetrates fraud and why it occurs, including
the pressures, opportunities, and rationalizations that are
present in most frauds.
• Define computer fraud and discuss the different computer
fraud classifications.
• Explain how to prevent and detect computer fraud and
abuse.

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 Threats to AIS
• Natural and Political disasters
• Software errors and equipment malfunctions
• Unintentional acts
• Intentional acts

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 Fraud
• Any means a person uses to gain an unfair advantage over another person;
includes:
– A false statement, representation, or disclosure
– A material fact, which induces a victim to act
– An intent to deceive
– Victim relied on the misrepresentation
– Injury or loss was suffered by the victim

Fraud is white-collar crime

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 Two Categories of Fraud
• Misappropriation of assets
– Theft of company assets which can include physical assets (e.g., cash, inventory) and
digital assets (e.g., intellectual property such as protected trade secrets, customer data)
• Fraudulent financial reporting
– “cooking the books” (e.g., booking fictitious revenue, overstating assets, etc.)

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 Auditor’s Responsibility
SAS No. 99 (AU-C Section 240) requires auditor’s to:
• Understand fraud
• Discuss the risks of material fraudulent misstatements
• Obtain information
• Identify, assess, and respond to risks
• Evaluate the results of their audit tests
• Document and Communicate findings
• Incorporate a technology focus

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 Conditions for Fraud
These three conditions must be
present for fraud to occur:
• Pressure • Opportunity to:
– Employee – Commit
 Financial – Conceal
 Lifestyle – Convert to personal gain
 Emotional
– Financial Statement • Rationalize
 Financial – Justify behavior
 Management – Attitude that rules don’t apply
 Industry conditions – Lack personal integrity

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 Fraud Triangle

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 Computer Fraud
• If a computer is used to commit fraud it is called computer fraud.
• Computer fraud is classified as:
– Input
– Processor
– Computer instruction
– Data
– Output

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Preventing and Detecting Fraud
1. Make Fraud Less Likely to Occur
Organizational Systems
• Create a culture of integrity • Develop security policies to guide and design
• Adopt structure that minimizes fraud, create specific control procedures
governance (e.g., Board of Directors) • Implement change management controls and
• Assign authority for business objectives and project development acquisition controls
hold them accountable for achieving those
objectives, effective supervision and
monitoring of employees
• Communicate policies

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Preventing and Detecting Fraud
2. Make It Difficulty to Commit
Organizational Systems
• Develop strong internal controls • Restrict access
• Segregate accounting functions • System authentication
• Use properly designed forms • Implement computer controls over input,
• Require independent checks and processing, storage and output of data
reconciliations of data • Use encryption
• Fix software bugs and update systems
regularly
• Destroy hard drives when disposing of
computers

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Preventing and Detecting Fraud
3. Improve Detection
Organizational Systems
• Assess fraud risk • Audit trail of transactions through the system
• External and internal audits • Install fraud detection software
• Fraud hotline • Monitor system activities (user and error
logs, intrusion detection)

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Preventing and Detecting Fraud
4. Reduce Fraud Losses
Organizational Systems
• Insurance • Store backup copies of program and data
• Business continuity and disaster recovery files in secure, off-site location
plan • Monitor system activity

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 Key Terms
• Sabotage • Pressure
• Cookie • Opportunity
• Fraud • Rationalization
• White-collar criminals • Lapping
• Corruption • Check kiting
• Investment fraud • Computer fraud
• Misappropriation of assets
• Fraudulent financial reporting

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Reference
• Chapter 05. Romney, Marshall B; Paul John Steinbart (2018). Accounting
Information Systems. 14th edition, Global Edition. ISBN: 978-1-292-22008-6

Fakultas Ekonomi dan Bisnis - Magister Akuntansi 18

End of Session 01