TechGuard Innovations Inc. $($TechGuard$)$ is an innovative technology firm comprising a young

and vibrant team, specialising in cybersecurity and digital protection technologies. The companys

head office is based in Limpopo with five production hubs in the province and a total of $300$

permanent employees.

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 R$16\mathrm{.}5$ 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 $2024,$ 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.

The CEO indicated that the budget for the investigation should not exceed $20$ percent of the

probable fraud loss as estimated by the internal auditors. Management also expects regular

feedback as the investigation progresses.

You as a senior manager at JJ Forensics will manage the assignment at a rate of R$7250$ per

hour. You will be assisted by three senior forensic auditors Gilbert Mkhari, Veronica Fourie and

Salim Mohammed each with an hourly rate of R$5570,$ and a junior forensic auditor Rachel

Kennedy at an hourly rate of R$2500.$ These rates do not include VAT and other costs.

All senior forensic auditors will compile the draft report and submit it to you for a preliminary

review, whereafter you will submit it to Christinah Becker, the managing director of JJ Forensics

for a final review and authorisation. TechGuard does not require written progress reports, the

company prefers weekly PowerPoint presentations at its offices during the investigation.

AUE$4801/102/1/$B$/2024$

$6$

Based on the preliminary investigation by JJ Forensics into the allegations of cyberfraud at

TechGuard, it was decided and agreed upon with TechGuard that, in addition to the computer

specialist, the professional service of a certified ethical hacker would also be required to assist JJ

Forensics throughout the course of the investigation. The ethical hacker would need to inspect

patch installation and other related duties to ensure that TechGuard is not exposed or vulnerable

to exploitation.

Mr Salman bought all members of the investigation team tickets to watch an upcoming rugby

match this was appropriately declared and accepted in terms of the JJ Forensics gifts policy.

During half$-$time of the game, Mr Salman requested you to ensure that the opinion of the

investigation would be against the chief information officer of TechGuard.

REQUIRED MARKS

$1\mathrm{.}1$ Prepare a long$-$form letter of engagement between TechGuard and JJ

Forensics, using the information in the scenario. You may make any

assumptions you consider appropriate to draft the letter of engagement. $(35)$

$1\mathrm{.}2$ Write an e$-$mail to your lecturer and discuss the possible outcome$($s$)$ of this

cyberfraud investigation by JJ Forensics and their overall impact on the

conclusion. Furthermore, share your insights into the guiding principle$($s$)$

associated with Mr Salmans request. $(15)$

$1\mathrm{.}3$ Prepare a memorandum for the attention of Ms Rachel Kennedy, to explain the

roles and responsibilities of all the reviewers of the factual findings report for

TechGuard, and discuss the risks for JJ Forensics of not adhering to good

practice when reviewing reports. $(20$