Real-Life Communication
A large business has called you in to investigate the theft of millions
of dollars from its checking account.
As a forensic accountant, you
know to look for the three key ingredients for crime: motive, opportunity
and method. Whoever perpetrated the crime must have had all three.
You
also know there are systems a company can implement to help stop theft and
fraud.
They are:
- Develop a comprehensive set of policies for all aspects of computer systems
usage, from appropriate access control software to a clear statement that
the systems can be used only for business purposes.
- Identify a person or group in the company who is responsible for computer
security.
- Use encrypted passwords -- especially passwords that aren't real words
-- to protect sensitive data.
- Assess the risk of everyone who has access to the computer system and
pay attention to whether or not they develop financial problems.
- Perform a complete security audit to identify systems at risk and to assess
opportunities for misuse.
Large Monies Inc. issues hundreds of checks each day. The checks cover
all sorts of items, so they range in size from $25 to $10,000.
Because
so many checks were issued each day, the corporation introduced an automated
system. The system handled the check authorization and signing (like those
stamped signatures on the bottom of government checks). The system issued
checks in batches and once it finished issuing them, it destroyed the data
that prompted their creation. Generally, it took 15 minutes for a batch to
be issued.
You discover that for one hour each day, an external computer
could access the check authorization routine without being registered.
"Communication skills are vital," says Douglas Kalesnikoff, a forensic accountant.
"[You must] be able to articulate your findings in a report that is understandable
and complete, yet not in so much detail that it's bogged down."
Explain
to the corporation's management -- in a written report -- what the method
and the opportunity were for the misuse. Also suggest ways to prevent this
from happening in the future.