NCJ Number
70393
Date Published
1980
Length
9 pages
Annotation
Following descriptions of how computers may be used to perpetrate various types of management fraud for and against a company, steps that must be taken to improve auditing that involves computers are discussed.
Abstract
Although the development of computers has not changed the essential nature of management fraud, it has made the detection of fraud much more difficult, since the perpetrators often cloak their fraud behind complex computer operations obscure to the would-be fraud detector. Further, computer operations can overcome the geographic and time constraints that hampered many instances of fraud under manual business systems. Several efforts must be undertaken to deal with computer-related fraud. First, auditors need their own independent specialized computers to reduce reliance on the client's computers. Second, audit tools and techniques must be further developed beyond the present state-of-the-art, as presented in the report 'Systems Auditability and Control,' produced by SRI International and available from the Institute of Internal Auditors. Third, computer systems and business application systems must be included at the time the systems are designed to ensure full integration. Fourth, specialization of the auditor and team auditing must be realized through training programs and staffing. Footnotes are not provided.