Forensic Accounting in the Fraud Auditing Case

Open access


This paper presents a real case of digital forensic analysis in organizational fraud auditing process investigated using two different forensic tools, namely Tableau TD3 Touch Screen Forensic Imager and Access Data FTK Imager. Fraud auditing is more of a mindset than a methodology and has different approaches from financial auditing. Fraud auditors are mostly focused on exceptions, accounting irregularities, and patterns of their conduct. Financial auditors place special emphasis on the audit trail and material misstatements. A fraud case investigation of non-cash misappropriations committed by an employee, the warehouseman, will be presented herein in order to highlight the usefulness of fraud auditing, which can reveal many forms of financial crime and can be used in both private and public sector companies. Due to the computerized accounting environment, fraud investigation requires a combination of auditing, computer crime and digital forensic investigation skills, which can be achieved through joint efforts and cooperation of both digital investigator and fraud auditor as proposed herein.

If the inline PDF is not rendering correctly, you can download the PDF file here.

  • Alden M.E. Bryan D.M. Lessley B.J. & Tripathy A. (2012). Detection of Financial Statement Fraud Using Evolutionary Algorithms. Journal of Emerging Technologies in Accounting 9(1) 71-94. doi:10.2308/jeta-50390

  • Arežina N. Knežević G. Simeunović N. & Vukićević S. (2014). Forensic Accountant: Innate Trait or Acquired Skill? Singidunum University International Scientific Conference Financial Reporting Function of the Corporate Governance Belgrade December 5 (pp. 131-134). Belgrade: Singidunum University. doi:10.15308/finiz-2014-131-134

  • Association of Certified Fraud Examiners. (2016). Report to the Nations 2016 Global Fraud Study. Retrieved April 14 2016 from

  • Bhasin M. (2015). An Empirical Investigation of the Relevant Skills of Forensic Accountants: Experience of a Enveloping Economy. Retrieved April 04 2016 from

  • Chabot Y. Bertaux A. Nicolle C. & Kechadi M.T. (2014). A Complete Formalized Knowledge Representation Model for Advanced Digital Forensics Timeline Analysis. Digital Investigation 11 S95-S105. doi:10.1016/j.diin.2014.05.009

  • Chan D.Y. & Vasarhelyi M.A. (2011). Innovation and Practice of Continuous Auditing. International Journal of Accounting Information Systems 12(2) 152-160. doi:10.1016/j.accinf.2011.01.001

  • Coderre D.G. (2009). Computer-Aided Fraud Prevention and Detection: A Step-by-Step Guide. New Jersey: John Wiley & Sons.

  • Elyas M. Maynard S.B. Ahmad A. & Lonie A. (2014). Towards a Systemic Framework for Digital Forensic Readiness. Journal of Computer Information Systems 54(3) 97-105. doi:10.1080/08874417.2014.11645708.

  • Gao L. & Srivastava R.P. (2011). The Anatomy of Management Fraud Schemes: Analyses and Implications. Indian Accounting Review 15(1) 1-23.

  • Gbegi D.O. & Adebisi J.F. (2014). Forensic Accounting Skills and Techniques in Fraud Investigation in the Nigerian Public Sector. Mediterranean Journal of Social Sciences 5(3) 243. doi:10.5901/mjss.2014.v5n3p243

  • Gray G.L. & Debreceny R.S. (2014). A taxonomy to Guide Research on the Application of Data Mining to Fraud Detection in Financial Statement Audits. International Journal of Accounting Information Systems 15(4) 357-380. doi:10.1016/j.accinf.2014.05.006

  • Grubor G. Ristić N. & Simeunović N. (2013). Integrated Forensic Accounting Investigative Process Model in Digital Environment. International Journal of Scientific and Research Publications 3(12) 1-9.

  • Harlan C. (2009). Windows Forensic Analysis DVD Toolkit Ch. 8 p. 411: Syngress Publishing. Inc. Retrieved April 12 2016 from

  • IBM. (2013). Big Data at the Speed of Business. Retrieved November 25 2015 from

  • ISO/IEC 27001. (2013). Information Technology: Code of Practice for Information Security Management. Retrieved November 27 2015 from

  • ISO/IEC 27002. (2013). Information Technology: Code of Practice for Security Controls. Retrieved November 27 2015 from

  • Jans M. Lybaert N. & Vanhoof K. (2010). Internal fraud risk reduction: Results of a data mining case study. International Journal of Accounting Information Systems 11(1) 17-41. doi:10.1016/j.accinf.2009.12.004.

  • Jones J.R. (2006). Document Metadata and Computer Forensics. James Madison University Infosec Techreport Department of Computer Science. Retrieved January 15 2016 from

  • Jones K.J. Bejtlich R. & Rose C.W. (2005). Real Digital Forensics: Computer Security and Incident Response. Upper Saddle River NJ: Addison-Wesley.

  • Keman D. (2004). Hidden Data in Electronic Documents GIAC GSEC Practical (v.1.4b Option 1) SANS Institute InfoSec Reading Room. Retrieved January 25 2016 from

  • Keszthelyi A. (2013). About Passwords. Acta Polytechnica Hungarica 10(6) 99-118. doi:10.12700/APH.10.06.2013.6.6

  • King J.R. (2009). Document Production in Litigation: Use an Excel-Based Control Sheet. National Association of Valuation Analysts. Retrieved December 19 2015 from

  • Kwok B.K.B. (2008). Forensic Accountancy. Ohio: Lexis-Nexis.

  • Michelberger P. & Lábodi C. (2012). After Information Security: Before a Paradigm Change (A Complex Enterprise Security Model. Acta Polytechnica Hungarica 9(4) 101-116.

  • Microsoft Knowledge Base. (2007). How to minimize metadata in Microsoft Excel Workbooks Article ID: 223789. Retrieved January 15 2016 from

  • Microsoft Knowledge Base. (2013). Microsoft Office and Forensic Accounting: Advanced Techniques Effective Tests & Valuable Tips for Excel OneNote Word PowerPoint & Access. Retrieved January 15 2016 from

  • Milosavljević M. & Grubor G. (2009). Digitalna forenzika računarskog sistema. Beograd: Univerzitet Singidunum. In Serbian.

  • Milosavljević M. & Grubor G. (2009). Istraga kompjuterskog kriminala. Beograd: Univerzitet Singidunum. In Serbian.

  • National Institute for Standards and Technology. (2013). Security and Privacy Controls for Federal Information Systems and Organizations. doi:10.6028/NIST.SP.800-53r4

  • Nigrini M. (2009). Benford’s Law Excel 2007/2010 Software. Retrieved December 10 2015 from

  • Nigrini M. (2011). Forensic Analytics: Methods and Techniques for Forensic Accounting Investigations. Hoboken NJ: John Wiley & Sons.

  • Panigrahi P.K. (2006). Discovering Fraud in Forensic Accounting Using Data Mining Techniques. The Chartered Accountant April(2006) 1426-1430. Retrieved February 16 2016 from

  • Perols J. (2011). Financial Statement Fraud Detection: An Analysis of Statistical and Machine Learning Algorithms. Auditing: A Journal of Practice & Theory 30(2) 19-50. doi:10.2308/ajpt-50009

  • Ravisankar P. Ravi V. Raghava Rao G. & Bose I. (2011). Detection of financial statement fraud and feature selection using data mining techniques. Decision Support Systems 50(2) 491-500. doi:10.1016/j.dss.2010.11.006

  • Seward J. (2011). Forensic Accounting: The Recorded Electronic Data Found on Computer Hard Disk Drives PDAs and Numerous Other Digital Devices. Retrieved November 22 2015 from

  • Singleton T.W. & Singleton A.J. (2010). Fraud Auditing and Forensic Accounting. Hoboken NJ: John Wiley & Sons.

  • Vasarhelyi M.A. Alles M.G. & Kogan A. (2004). Principles of Analytic Monitoring for Continuous Assurance. Journal of Emerging Technologies in Accounting 1(1) 1-21. doi:10.2308/jeta.2004.1.1.1

  • Vasarhelyi M.A. Alles M.G. Kuenkaikaew S. & Littley J. (2012). The Acceptance and Adoption of Continuous Auditing by Internal Auditors: A Micro Analysis. International Journal of Accounting Information Systems 13(3) 267-281. doi:10.1016/j.accinf.2012.06.011

  • Winch D. (2007). Finding and using a forensic accountant. Retrieved December 5 2015 from

Journal information
All Time Past Year Past 30 Days
Abstract Views 0 0 0
Full Text Views 1758 617 42
PDF Downloads 827 272 35