AUE4801 Examination Answers 25 OCTOBER 2023

TechGuard Innovations Inc. (TechGuard) is an innovative technology firm comprising a young and vibrant team, specialising in cybersecurity and digital protection technologies. The company has a good reputation for safeguarding digital assets and ensuring secure online operations for its clients. Recent unusual digital activities and a series of security breaches have raised concern in the industry, prompting the business to appoint forensic auditors to investigate potential cyberfraud within TechGuard. Consequently, the internal audit team of TechGuard has conducted a series of data-analysis tests, and identified the following transactions or activities as potential instances of cyberfraud and/or money laundering: o Illegal access to its unique cybersecurity software that appears to have come from an unknown external source, jeopardising the software's integrity. o The company's financial department uncovered unusual financial activity, such as illicit fund transfers and cryptocurrency transactions, which were not consistent with normal financial operations. o An analysis of client data has unveiled discrepancies between their digital profiles and online behaviours, implying possible manipulation of their personal information contained in their profiles. The internal auditors indicated that the probable fraud loss is estimated at R16.5 million. Responding to the looming cybersecurity threats and potential lack of regulatory compliance, Mr Lubabalo Salman, chief executive officer (CEO) of TechGuard, approached Pro JJ Forensic Pty (Ltd) (JJ Forensics) on Monday, 9 January 2023, in consultation with the IT audit team, to perform a forensic audit into this alleged cyberfraud. The internal audit team will assist the forensic audit team by providing them with access to internal audit files, computer systems, supporting documentation, and any additional assistance.