Evidence investigation methodologies for detecting financial fraud based on forensic accounting

Jaemin Choi, Kwangwon Choi, Sangjin Lee

Research output: Chapter in Book/Report/Conference proceedingConference contribution

7 Citations (Scopus)

Abstract

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.

Original languageEnglish
Title of host publicationProceedings of the 2009 2nd International Conference on Computer Science and Its Applications, CSA 2009
DOIs
Publication statusPublished - 2009
Event2009 2nd International Conference on Computer Science and Its Applications, CSA 2009 - Jeju Island, Korea, Republic of
Duration: 2009 Dec 102009 Dec 12

Publication series

NameProceedings of the 2009 2nd International Conference on Computer Science and Its Applications, CSA 2009

Other

Other2009 2nd International Conference on Computer Science and Its Applications, CSA 2009
CountryKorea, Republic of
CityJeju Island
Period09/12/1009/12/12

Keywords

  • DB forensic
  • Financial fraud
  • Forensic accounting
  • Fraud detection

ASJC Scopus subject areas

  • Computational Theory and Mathematics
  • Computer Science Applications

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