TY - GEN
T1 - Evidence investigation methodologies for detecting financial fraud based on forensic accounting
AU - Choi, Jaemin
AU - Choi, Kwangwon
AU - Lee, Sangjin
PY - 2009
Y1 - 2009
N2 - Many companies produce public financial statements as part of their annual accounts. These financial statements are audited by the Financial Supervisory Service (FSS) in Korea to identify their financial transparency [1]. However, even if financial risk has been evaluated using fraud symptom analysis, fraudulent acts committed by fabricating financial statements and transactions may lead to creative accounting. The adverse impact of financial fraud is rapidly increasing worldwide; it affects both individuals and national economic systems. For example, fraudulent companies may be unable to raise funds; in the worst case, they may go into bankruptcy. Generally, the financial accounts of companies exist as digital accounting data in computer system. Database systems efficiently manage this digital data. Therefore, we are conducting research on digital forensic accounting to detect fraud factors in financial transactions. In this paper, we suggest methodologies for forensic accounting investigation. We explain the process and cycle of financial fraud investigation. We also propose forensic accounting techniques that can detected the fraud factors. The techniques are representatively included in a covert resource detection system. This uses financial and business data extraction techniques in the company's server, a data acquisition tool in an external file server, a forensic accounting tool to detect financial fraud factors.
AB - Many companies produce public financial statements as part of their annual accounts. These financial statements are audited by the Financial Supervisory Service (FSS) in Korea to identify their financial transparency [1]. However, even if financial risk has been evaluated using fraud symptom analysis, fraudulent acts committed by fabricating financial statements and transactions may lead to creative accounting. The adverse impact of financial fraud is rapidly increasing worldwide; it affects both individuals and national economic systems. For example, fraudulent companies may be unable to raise funds; in the worst case, they may go into bankruptcy. Generally, the financial accounts of companies exist as digital accounting data in computer system. Database systems efficiently manage this digital data. Therefore, we are conducting research on digital forensic accounting to detect fraud factors in financial transactions. In this paper, we suggest methodologies for forensic accounting investigation. We explain the process and cycle of financial fraud investigation. We also propose forensic accounting techniques that can detected the fraud factors. The techniques are representatively included in a covert resource detection system. This uses financial and business data extraction techniques in the company's server, a data acquisition tool in an external file server, a forensic accounting tool to detect financial fraud factors.
KW - DB forensic
KW - Financial fraud
KW - Forensic accounting
KW - Fraud detection
UR - http://www.scopus.com/inward/record.url?scp=80655130269&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=80655130269&partnerID=8YFLogxK
U2 - 10.1109/CSA.2009.5404202
DO - 10.1109/CSA.2009.5404202
M3 - Conference contribution
AN - SCOPUS:80655130269
SN - 9781424449460
T3 - Proceedings of the 2009 2nd International Conference on Computer Science and Its Applications, CSA 2009
BT - Proceedings of the 2009 2nd International Conference on Computer Science and Its Applications, CSA 2009
T2 - 2009 2nd International Conference on Computer Science and Its Applications, CSA 2009
Y2 - 10 December 2009 through 12 December 2009
ER -