The Disclosure and disposal of fraud in IT environment

1
The Disclosure and disposal of fraud in IT
environment

• China National Audit Office
• May 2008

2
the series

• 15th Committee meeting Characteristics of the
  fraud in IT environment
• 16th Committee meeting Measures Taken to
  Counter Fraud in IT Environment
• 17th Committee meeting Disclosure and
  disposal of fraud in IT environment

3
Framework

• Special considerations on the disclosure of fraud
  in IT environment
• The form and contents of disclosure to different
  recipients
• CNAOs investigation and disposal of IT-related
  fraud

4
Special considerations on the disclosure of fraud
in IT environment

• Consideration based on the diversity of subjects
  who make fraud in IT environment
• The disclosure covers beyond the untruthful
  reflection of financial statements

5
Special considerations on the disclosure of fraud
in IT environment(contd)

• audit institution should consult more with
  external specialists
• There should be some distinction of notification
  to the public among the frauds of different
  nature

6
Framework

• Special considerations on the disclosure of fraud
  in IT environment
• The form and contents of disclosure to different
  recipients
• CNAOs investigation and disposal of IT-related
  fraud

7
The form and contents of disclosure to different
recipients

• SAS No.99 by AICPA
• Independent Auditing Professional Standard No.8
  ---- Errors and Fraud by CICPA
• Chinese Audit Law

8
The form and contents of disclosure to different
recipients(contd)

• The disclosure to the public
• The disclosure to the management
• The disclosure to the authority

9
Framework

• Special considerations on the disclosure of fraud
  in IT environment
• The form and contents of disclosure to different
  recipients
• CNAOs investigation and disposal of IT-related
  fraud

10
CNAOs investigation and disposal of IT-related
fraud

• make the disposal by audit institution within the
  limits of its statutory functions
• put the case forward to related departments

11
CNAOs investigation and disposal of IT-related
fraud(contd)

• Never too old to learn
• Never too late to turn

12
Thank you.