Yeog Kim

Design and Implementation of a Tool to Detect Accounting Frauds

Accounting frauds of a company have direct and indirect effects on financial institutions. For instance, the well-known cases of Enron and WorldCom became a major scandal with worldwide repercussions in 2002. As a result, we began to pay attention to accounting transparency. Since then, many countries have established a law, a principle or a guide of accounting and accounting audit like Sarbanes-Oxley Act and Statements of Auditing Standards. However, some companies commit accounting frauds to manipulate, change or delete financial statements, despite these rules. The reason why companies do this is because they want to increase their stock prices. Thus, companies commit skillful frauds following accounting principles, which makes it difficult to detect a fraud unless one is a forensic accountant. In this paper we propose a method to detect accounts with fraud symptoms in financial statements which hide accounting frauds or attempts of tax evasions. Furthermore, we have implemented a tool to detect them and tested it using data of companies which committed accounting frauds.

Fraud Detection for Information Reliability from the Internet in Forensic Accounting

Internet is a main factor in a flood of information. There is great concerning about reliability of information from the Internet. Financial statements are opened annually and anybody can obtain them from the Internet. A company manipulates its accounting data in order to look like financially stable. An institutional or individual investor considers the company has a good state in finance part or in business activity from its financial reports. That makes investors failed due to faulty information. Therefore, personal, companies or even countries can become a very dangerous state by usage of incorrect information. To modify accounting data as false is an antisocial action. In forensic accounting, an investigation is conducted to find evidence relevant to accounting scandals that involve making money for use in secret, embezzling company funds, or evading taxes on purpose [1]. But most existing techniques are used for evidence discovery rather than fraud prevention. Fraud prevention in accounting part means to pre-detect frauds by analyzing financial statements. It helps information reliability from the Internet. In this paper, an algorithm is suggested for the detection of financial fraud via financial statements analysis and the test results using this algorithm will be presented.

Design and Implementation of a Tool for System Restore Point Analysis

When a digital investigation is carried out, the main goal of the forensic practitioner is to find out evidence related to a digital crime on the computer under examination. To make the situation more severe, the perpetrator might have destroyed the evidence, for instance, by deleting the software which has been used to commit illicit actions. Moreover, he/she might have used sophisticated anti-forensic techniques to deceive the forensic examination. Fortunately, on Windows XP-based computer systems, it is possible to observe such attack methods by means of system restore point (SRP) analysis. Although the suspect might have removed files or uninstalled applications related to a digital crime, it will be possible to find out traces by analyzing such SRP data structure. We have, therefore, developed an analysis tool that acquires information from the SRP database and analyzes it, by presenting results in a useful format for the forensic examiner. Finally, we have provided a case of study which exemplifies the implemented tool.

Design and implementation of the IMS-IPMP system in convergence home-network environment

The traditional contents distribution architecture was fixed pattern, as the distribution subjects – Contents Provider (CP), Contents Distributor (CD), and Contents Consumer (CC) – create, distribute, and consume the digital contents, while in Convergence Home-network Environment (CHE) it would be necessary for each subject to have the distribution system that can be flexibly changed. In this paper, we designed and implemented the Interactive Multimedia Service- Intellectual Property Management and Protection (IMS-IPMPS) by supplementing and expanding MPEG-21 DID, IPMP, REL, and the mechanism of OMA-DRM. In the proposed system, it is possible for CP to complete the appropriate authentication in CHE, generate the contents, and then register the packaged contents in safety for its distribution. In addition, it is the IMS-IPMP system where one can simultaneously consume the contents that the users from the different home network environments have generated and registered.

Notarization and Archive System of Web Postings for Litigation

Rumors or abusive postings in internet have become a social issue. Web postings may be evidence in form of a screenshot in libel suit. A screenshot is an image which is taken by a computer and can be easily modified by computer programs. Users can write their message and modify some parts of writing or delete it after user authentication on a web site. A web server saves only the latest postings generally. So a person can make ill use of the screenshot which is modified deliberately original contents to opposite meaning in a lawsuit. That makes an innocent person to be punished because it can have difficulties to verify despite analyzing the server data. A screenshot of web postings is likely to fail to prove its authenticity and it is not able to reflect matter of fact that the screenshot of web postings has been modified. If notarization is offered for web posting evidence, clear and convincing evidence can be submitted in a court. So, related techniques and policies should be established. In this paper, we propose some technical and legal conditions and design for notarization and archive system of web postings for litigation.

Detection of Hidden Information in Forensic Tools

Forensic tools are used to create critical evidence in computer-related crimes investigation. The evidence has an effect on judgment by the court and it requires verification of forensic tools. The verification should require an agreement of law enforcement organizations. Computer Forensic Tool Testing (CFTT) Verification project provides a measure of assurance that the tools used in the investigations produce valid results [1]. CFTT suggests requirements, assertions and test cases document for verification of forensic tools. There are hidden data in acquired image however CFTT do not deal with detection test on hidden data. Detection technology depends on cover carriers, such as images, audio, text or code represented digitally, hold the hidden data. This paper proposes preprocesses for detection of hidden data to be existed or not by forensic tools.