5 COMPUTER FORENSICS
Today, almost every financial fraud incorporates the use of a computer, whether
the fraud is falsifying invoices or electronic money laundering (Smith, 2005). In the case
of financial statement fraud, entries probably exist as electronic journal entries, login
records found in log files, and electronic correspondence between involved individuals.
In recent years, auditors find themselves increasingly involved in evidence collection
through computer forensics.
As it pertains to fraud detection, computer forensics is the process of imaging data
for safekeeping and then searching cloned copies for evidence (Gavish, 2007; Dixon,
2005). Perhaps the most common example is seizing the computer of a suspect for
analysis. In gaining access to or auditing the data on a digital device, computer forensics
can also involve whitehat (legal) hacking, password and encryption cracking, key
logging, digital surveillance, and intrusion detection.
Arguably the most common form of electronic evidence is email correspondence. When an individual sends an email, a copy is normally kept in at least four places: on his
or her workstation, on the sending mail server, on the receiving mail server, and on the
recipient’s computer. Computer forensics on any location should provide the full text of
the email, including any attachments
5 COMPUTER FORENSICSToday, almost every financial fraud incorporates the use of a computer, whether the fraud is falsifying invoices or electronic money laundering (Smith, 2005). In the case of financial statement fraud, entries probably exist as electronic journal entries, login records found in log files, and electronic correspondence between involved individuals.In recent years, auditors find themselves increasingly involved in evidence collection through computer forensics.As it pertains to fraud detection, computer forensics is the process of imaging data for safekeeping and then searching cloned copies for evidence (Gavish, 2007; Dixon,2005). Perhaps the most common example is seizing the computer of a suspect foranalysis. In gaining access to or auditing the data on a digital device, computer forensicscan also involve whitehat (legal) hacking, password and encryption cracking, key logging, digital surveillance, and intrusion detection.Arguably the most common form of electronic evidence is email correspondence. When an individual sends an email, a copy is normally kept in at least four places: on hisor her workstation, on the sending mail server, on the receiving mail server, and on the recipient’s computer. Computer forensics on any location should provide the full text ofthe email, including any attachments
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