Continuous fraud detection in enterprise systems through audit trial analysis

Best, Peter J. and Rikhardsson, Pall and Toleman, Mark (2009) Continuous fraud detection in enterprise systems through audit trial analysis. Journal of Digital Forensics, Security and Law, 4 (1). pp. 39-60. ISSN 1558-7215


Enterprise systems, real time recording and real time reporting pose new and significant challenges to the accounting and auditing professions. This includes developing methods and tools for continuous assurance and fraud detection. In this paper we propose a methodology for continuous fraud detection that exploits security audit logs, changes in master records and accounting audit trails in enterprise systems. The steps in this process are: (1) threat monitoring-surveillance of security audit logs for ‘red flags’, (2) automated extraction and analysis of data from audit trails, and (3) using forensic investigation techniques to determine whether a fraud has actually occurred. We demonstrate how mySAP, an enterprise system, can be used for audit trail analysis in detecting financial frauds, Afterwards we use a case study of a suspected fraud to illustrate how to implement the methodology.

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Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Additional Information: Awaiting advice from publisher (Association of Digital Forensics Security and Law).
Faculty / Department / School: Historic - Faculty of Business - School of Accounting, Economics and Finance
Date Deposited: 21 Dec 2009 03:15
Last Modified: 02 Jul 2013 23:26
Uncontrolled Keywords: continuous assurance; continuous audit; fraud detection; enterprise system; accounting information systems; mySAP; audit trails
Fields of Research : 15 Commerce, Management, Tourism and Services > 1502 Banking, Finance and Investment > 150205 Investment and Risk Management
08 Information and Computing Sciences > 0803 Computer Software > 080303 Computer System Security
15 Commerce, Management, Tourism and Services > 1501 Accounting, Auditing and Accountability > 150102 Auditing and Accountability
Socio-Economic Objective: B Economic Development > 90 Commercial Services and Tourism > 9001 Financial Services > 900199 Financial Services not elsewhere classified

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