Computer Frauds in Accounting: Applications in UK Companies

This report investigates computer fraud within the accounting environment of companies in the United Kingdom. It addresses key research questions regarding the types of computer frauds prevalent in UK companies, the techniques employed to detect and prevent these frauds, the impact of computer usage on the frequency and magnitude of fraud, and the role of Information Technology in fraud detection and prevention. The report also explores potential improvements in internal controlling systems. The literature review highlights perspectives on defining accounting fraud, the Fraud Triangle theory, and the applicability of forensic accounting. The methodology proposes qualitative in-depth interviews with relevant individuals in the UK commercial domain, with results to be analyzed both quantitatively and qualitatively using SPSS.

Computer Fraud In
Accounting Environment
Applications in the companies of the
United Kingdom

Introduction
 The contemporary business world, with the advent of new
technologies, new modes of operation, newer players and new
types of specialization, is becoming more and more diverse and
complex (Cooper, Dacin & Palmer, 2013).
 Accounting, being a practice closely attached to the commercial
operations, is also affected by these technological innovations,
especially that of the usage of computers.
 The new age technologies have also made the accounting
practice vulnerable to various frauds and unfair practices and this
is one of the primary concerns in the accounting environment
(Hutchings, 2013).

Research Questions
 What type of computer frauds usually occur in the accounting
environment of the companies in the UK?
 What are the techniques that are usually used by the companies
in the concerned place to tackle detect and prevent the computer
frauds in the accounting environment?
 Has the usage of computer for accounting operations led to an
increase in the number and the magnitude of frauds occurring in
the commercial organizations of the country?
 What role does the Information Technology aspect actually play in
the detection and prevention of computer frauds?

Research Questions
 Is there any scope of improvement in the aspect of the internal
controlling systems in the commercial organizations, with respect
to the current technologies existing in this aspect, which can be
undertaken to detect as well as to prevent the accounting frauds
done with the help of computers (Salem, 2012)?

Literature Review
 Hall, (2012) in his research paper, tries to define the accounting
fraud with respect to computer usage, as the deliberate misuse of
the technology in omitting financial amount from the account of a
commercial enterprise, with the help of the financial statements
that are in their disposal.
 Kassem & Higson, (2012) in this context, takes into account the
Theory of Fraud Triangle, according to which, frauds in a general
context occur in steps.
 Nigrini, (2012) tries to focus on the applicability of the new type
of accounting, like that of the forensic accounting and the
application of the same for the purpose of auditing and detection
of frauds which occur commonly in the current times.

Literature Review
 Salem, (2012), in the research article, talks about the effective
ways of fraud detecting and managing the problems in the
contemporary business world. The author asserts on the need for
a monitored, detailed and regulated framework of assessing risks,
under which the fraud schemes, internal to the organization can
be identified.
 Pedneault et al., (2012), incorporates the idea of the prospects of
the implementation of the forensic accounting as a way out for
the detection of frauds in the new age digital market.

Methodology
 The paper intends to take conduct a qualitative in depth interview
with the relevant individuals in the commercial domain of the UK.
 The questionnaire to be used will incorporate questions regarding
their views regarding the common problems of fraud in the UK
companies, their perceptions regarding these problems and what,
according to them, can be done to eradicate or at least diminish
the degree of severity of the problem in the concerned place
(Sharma & Panigrahi, 2013).
 The results are proposed to be both quantitatively (Using relevant
statistical software, SPSS) and qualitatively analyzed.

References
 Cooper, D. J., Dacin, T., & Palmer, D. A. (2013). Fraud in accounting,
organizations and society: Extending the boundaries of research.
 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.
 Hall, J. A. (2012). Accounting information systems. Cengage
Learning.
 Hutchings, A. (2013). Hacking and fraud: A qualitative analysis of
online offending and victimisation. Global Criminology: Crime and
Victimization in the Globalized Era, 93-114.
 Kassem, R., & Higson, A. (2012). The new fraud triangle
model. Journal of Emerging Trends in Economics and Management
Sciences, 3(3), 191.

References
 Nigrini, M. (2012). Benford's Law: Applications for forensic accounting,
auditing, and fraud detection (Vol. 586). John Wiley & Sons.
 Pedneault, S., Silverstone, H., Rudewicz, F., & Sheetz, M. (2012). Forensic
accounting and fraud investigation for non-experts. John Wiley & Sons.
 Salem, M. S. (2012). An overview of research on auditor's responsibility to
detect fraud on financial statements. Journal of Global Business
Management, 8(2), 218.
 Sharma, A., & Panigrahi, P. K. (2013). A review of financial accounting
fraud detection based on data mining techniques. arXiv preprint
arXiv:1309.3944.
 Taylor, R. W., Fritsch, E. J., & Liederbach, J. (2014). Digital crime and digital
terrorism. Prentice Hall Press.
 Willis, L. E. (2017). Performance-Based Remedies: Ordering Firms to
Eradicate Their Own Fraud. Law and Contemporary Problems, 80(3), 7-41.

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