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13 Cards in this Set
- Front
- Back
Fraud
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Gaining an unfair advantage over another person.
1. False statement or representation 2. Material fact to induce person 3. Justifiable reliance; person relies on. 4. Injury or loss suffered by victim |
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Misappropriation of Assets
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theft of company assets
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Fraudulent Financial Reporting
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Intentional or reckless conduct, that results in materially misleading financial statements to deceive investors, creditors and increase a company's stock price.
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SAS No. 99
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Requires auditors to:
-Understand fraud -Discuss the risks of material fraudulent misstatements -Obtain information -Identify, assess and respond to risk -Evaluate the results of audit tests -Document findings -Incorporate a technology focus |
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Fraud Triangle
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-Pressure
-Opportunity -Rationalization (Justification) |
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Lapping Scheme
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Perpetrator steals the cash or checks. Customer A mails in to pay its account receivable and later funds from customer B to pay off customer A's balance.
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Kitting
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Cash is created using the lag between the time a check is deposited and the time it clears the bank.
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Input Fraud
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Simplest way to commit a computer fraud is to alter or falsify computer input.
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Processor Fraud
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Unauthorized system use, including the theft of computer time and service. Ex: employees using company computers to run an illegal gambling web site.
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Computer instructions Fraud
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Modifying company software, copying software illegally, using software in an unauthorized manner, and developing software to carry out an unauthorized activity.
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Data Fraud
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Illegally using, copying, browsing, searching, or harming company data.
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Output Fraud
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Stealing of displayed or printed output. Ex: printing fictitious checks.
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Common threats to AIS
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-Natural Disasters and Terrorist Threats
-Software Errors and/or Equipment Malfunction -Unintentional Acts (Human Error) -Intentional Acts (Computer Crimes) |