ETI Micro Project Sample

MAHARASHTRA STATE BOARD OF TECHNICAL EDUCATION
INSTITUTE CODE: - 1241
Report on
Forensic Accounting in the Fraud Auditing Case

Subject: - ‘Emerging Trends in Information Technology”
(Subject Code: -22618)
Guided by: -
Prof. V. B. Kale
SUBMITTED BY:
Roll no Name Enrollment no

20 Avinash S. Patil 2012411200
22 Pallavi U. Phirke 2012411203
23 Manthan K. Ragade 2012411204
DIPLOMA IN INFORMATION TECHNOLOGY

GOVERNMENT POLYTECHNIC MURTIZAPUR
COLLEGE
2022-23
1
Maharashtra State
Board of Technical Education
Certificate
This is to certify that Mr_____________________________________

from Government Polytechnic, Murtizapur having Enrolment No:
____________has completed Microproject having of topic “Emerging Trends
in Information Technology” Group under the guidance of Prof. V. B. Kale
Place:- Murtizapur. Enrollment no:- __________
Date:- Exam Seat No:-__________
Subject Teacher Head of Department Principle
2
Index
SR.NO. CONTENT PAGE NO.
1 Rational 04
2 Aim of the project 04
3 Course Outcomes Achieved 04
4 Introduction 05
5 Digital Forensic Investigation In Fraud Auditing Process 06
6 Fraud Auditing Principles: 07
7 Fraud Case - Forensic Analysis 08
8 Results Of Forensic Analysis 08
9 Actual Resources Required 09
10 Applications of the Project 09

11 Conclusion 10
12 Reference 11
3
 Rationale
Digital forensic is a branch of forensic science encompassing the

recovery and investigation of material found in digital devices, often in
relation to computer crime.
The term digital forensics was originally used as a synonym for

computer forensics but has expanded to cover investigation of all devices
capable of storing digital data. With roots in the personal computing
revolution of the late 1970s and early 1980s, the discipline evolved in a
haphazard manner during the 1990s, and it was not until the early 21st
century that national policies emerged.
In this project we will study Fraud Auditing Case incident to study

use of digital forensics to solve real world cases of hacking and computer
attacks.
 Aim of the project
1. To analyze real world use of Digital Forensics

2. To address importance Digital Forensics in case solving.
3. To study Adriano Fraud Auditing Case and how digital forensics was used to solve
the case.
 Course Outcomes Achieved
1. Compare Models of Digital Forensic Investigation.

2. Describe evidence handling procedures.
4
 Introduction
Auditing is a process that enables determining reliability of recorded, classified and

summarized financial data.
Accounting differs from auditing, as a process of recording, classification and
summarizing of economic events to help the management make informed decisions
based on the sound financial data.
Fraud, as a criminal offence, is a generic term that includes surprising, tricking, cunning,
and unfair behavior by which someone else is cheated. Corporate fraud is any fraud
perpetrated by, for, or against some business corporation (Singleton & Singleton, 2010).
An occupational fraud and abuse, or employee fraud is: “the use of one’s occupation for
personal gain through deliberate misuse or theft of the employing organization’s
resources or assets” (Nigrini, 2011).
Economic motives are the most common reason for committing despite the presence of
other reasons such as egocentric, ideological, emotional etc. Essentially, every fraud
includes motivation, opportunity and rationalization. Many researchers have
demonstrated that the fraud triangle can be of great help in profiling employees
committing fraud.
In the computerized accounting environment, fraud could be committed at the input,
throughput or output processing phases. How- ever, entering fraudulent data at the input
state is the most usual fraudulent behavior by ordinary employees, including account
payables, benefits, or expense claims. Frauds within organizations are mainly associated
with the absence of internal controls rather than their weaknesses.
In a legal fraud investigation, the intent is the most difficult aspect to be proved, because
it occurs in one’s mind and the proof is becoming circumstantial. In any and all cases,
fraud must be considered an economic, social and organizational and in this fraud case,
the internal auditor could not detect any irregularities, but remained suspicious due to
his business experience and previous knowledge that the related item was not needed in
such quantity.
Therefore, he took the case over to digital forensic examiner. In this paper, the
aspects of the digital forensic investigation and analysis of the case are described.
5
 Digital Forensic Investigation In Fraud Auditing Process
Digital forensic investigation, by its nature, is a dichotomy

phenomenon; it is as much an art as it is a science. At the same time, it
represents both an intuitive process and the formal analytical and scientific
methodology. Therefore, it is difficult to be taught and learned. Similarly,
fraud auditing process depends more on intuition and thinking as a thief
would, than on various formally learnt subjects.
A digital forensic examiner, like a fraud auditor, looks for

relevant information without presumption, organizes it and tries to
discover relevant data and make a pattern they create in order to
reconstruct what may have occurred.
Event reconstruction is one of the most important steps in digital

investigation. It allows investigators to understand the timeline of a
criminal case (Chabot et al., 2014). Also, in the computerized
environment, fraud auditors should be familiar with relevant legislation,
applicable standards and other requirements within the organization.
However, investigating fraud related to computers or networks as

well as the Internet requires a combination of auditing, computer crime
and digital forensic investigation skills. In the current reporting
environment, forensic accountants are undoubtedly in great demand for
their accounting, auditing, legal, and investigative skills. They can play a
vital role in coordinating the company‘s efforts to achieve a cohesive
policy of ethical behaviour within an organization. Unfortunately, it is
quite difficult to encounter all these skills in one person.
A digital forensic investigator applies forensic rules, principles,

techniques and tools to investigate the computer related fraud. On the
other hand, auditors could provide forensic investigators with the
knowledge of accounting and auditing rules, principles, techniques, and
methods. Since generic fraud involves many variables such as fraud
types, victim types, crime methods, techniques and tools, it seems almost
impossible to create a unified and comprehensive theory or solution.
6
 Fraud Auditing Principles:
1. Being at the same time an art and a science, fraud auditing is
different from financial auditing.
2. Fraud auditors place emphasis on the exceptions, irregularities,
and oddities of accounting conduct patterns.
3. Essentially, any fraud is an intentional change of financial or
material facts in order to gain some benefits.
4. Despite some fraud theories, fraud auditing is learned primarily
from experience.
5. There are many reasons for committing fraud such as
economic, emotional, egocentric, psychotics etc.
6. Places where fraud could be committed in digital environment
are at input, transition or output of transaction.
7. Some financial gains are the most usual among internal frauds
made by employees.
8. The lack of or poor control is most often the cause of
accounting frauds.
9. Accounting frauds are more often discovered by reactive than
proactive actions.
10. Proactive fraud measures mainly depend on adequate internal
controls, personal honesty and fair business.
7
 Fraud Case - Forensic Analysis
In this fraud case, the senior accountant from the inventory team, getting suspicious
about the unusual excess of the subject item, made the first step in the investigation
process. He collected the data from video monitoring system and acquired the suspected
computer as electronic evidence. However, he couldn’t prove his suspicions due to the
lack of digital forensic knowledge. Thereafter, he hired a DFA who took forensic image
of the suspected computer’s hard disk. In order to verify the digital evidence, two
forensic analysts from the Association (AFTWIT) performed an independent analysis
using two different forensic tools (Figure 1).
 Results Of Forensic Analysis
Forensic analysts produce a forensic report (King, 2009), including their opinions and
recommendations. In this fraud case, somebody under the user name “Kosa” used the
computer with accounting application and financial data of the company between June
24, 2013 at 08:19:45AM and June 24, 2013 at 08:37:13AM. The MS Access data base
“GSD2013.mdb” was changed and accounting application “ rvi2005.exe” was used.
It was proved that there were two versions of the inventory report from the ledger list
– one from Friday and the other one from Sunday. In the report from Sunday, there
were 60 pieces of the item No. 1034, which is more than in the previous one It was
necessary to identify who visited the office on Sunday 24, June 2013, and whether
he/she knew the credentials for the access to the computer and accounting application,
and to investigate his/ her motives for such manipulation.
8
 Actual Resources Required
The resources used during the completion of project are mentioned in
the below
Sr.no Name of resources Specifications Quantity Remarks

material
1. YouTube MP4-file format, 640 x 1

360 pixels
2. Microsoft Word 1
3. Laptop Dell, RAM 8 GB, 1

Harddisk 1 TB, i3
processor
4. Efficient communication skills.
5. Working as a team member for developing c program.
6. Developing leadership qualities.
 Applications of the Project

1. This project can be used in the implementation of Digital Forensics in solving the
criminal cases.
2. The project can be also used to understand the concept of Digital forensics.
3. The project can be used in learning the case study on particular case and put forth
our conclusions.
9
 Conclusion
Taking into consideration previously explained case study and

available literature, it is blatantly obvious that ICTs (Information and
Communications Technologies) play an increasing role in capturing
accounting and overall business processes in an organization. It could
be observed from the available fraud statistics and relevant history
that fraud can occur anywhere and it continues to grow, especially in
terms of losses and frequency.
Therefore, in order to successfully investigate fraud, joint

efforts of both digital investigator and fraud auditor is required by
combining their auditing, computer crime and digital forensic
investigation skills, which can be hardly encountered in a single
person. Both of these two roles, fraud auditing and digital forensics,
require skills, knowledge and abilities exceeding the traditional
financial auditing.
One of the ways to fight fraud is to provide forensic readiness

of companies in order to ensure a healthy business environment for
development of national economies.
10
 Reference
 Joon, Veenu; Shahrawat, Renu; Kapahi, Meena (September 2017). "The Emerging
Environmental and Public Health Problem of Electronic Waste in India"
 E-waste (Management and Handling) Rules, 2011http://www.ecoraksha.com/index.php?
 Pandit, Virendra (3 June 2016). "India likely to generate 5.2 million tonnes of e-waste by 2020:
Study - Business Line". The Hindu Business Line. Archived from the original on 12 July 2018.
 Assessment
Group assessment Individual Assessment Total Dated sign of

Marks obtained Marks obtained (10) faculty
(6) (4)
Thank you…..!
11

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MAHARASHTRA STATE BOARD OF TECHNICAL EDUCATION

INSTITUTE CODE: - 1241

Forensic Accounting in the Fraud Auditing Case

Roll no Name Enrollment no

DIPLOMA IN INFORMATION TECHNOLOGY

This is to certify that Mr_____________________________________

Place:- Murtizapur. Enrollment no:- __________

Date:- Exam Seat No:-__________

Subject Teacher Head of Department Principle

SR.NO. CONTENT PAGE NO.

2 Aim of the project 04

3 Course Outcomes Achieved 04

5 Digital Forensic Investigation In Fraud Auditing Process 06

6 Fraud Auditing Principles: 07

7 Fraud Case - Forensic Analysis 08

8 Results Of Forensic Analysis 08

9 Actual Resources Required 09

10 Applications of the Project 09

Digital forensic is a branch of forensic science encompassing the

The term digital forensics was originally used as a synonym for

In this project we will study Fraud Auditing Case incident to study

 Aim of the project

1. To analyze real world use of Digital Forensics

 Course Outcomes Achieved

1. Compare Models of Digital Forensic Investigation.

Auditing is a process that enables determining reliability of recorded, classified and

Digital forensic investigation, by its nature, is a dichotomy

A digital forensic examiner, like a fraud auditor, looks for

Event reconstruction is one of the most important steps in digital

However, investigating fraud related to computers or networks as

A digital forensic investigator applies forensic rules, principles,

 Results Of Forensic Analysis

Sr.no Name of resources Specifications Quantity Remarks

1. YouTube MP4-file format, 640 x 1

3. Laptop Dell, RAM 8 GB, 1

 Applications of the Project

Taking into consideration previously explained case study and

Therefore, in order to successfully investigate fraud, joint

One of the ways to fight fraud is to provide forensic readiness

Group assessment Individual Assessment Total Dated sign of

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