Fraud Auditing, Detection, and Prevention Blog

While auditors are often experts in accounting and auditing it is not reasonable to assume your team are also highly skilled experts in fraud auditing, forensic accounting, or even litigation when the time comes for further action. Many cases of fraud have the capability to go undetected for years if the proper controls are not in place, and so it is likely your team of auditors are not commonly dealing with fraud in their working lives beyond the creation of controls and preventative measures.

Let’s take a look at the advantages of using experts in fraud auditing and litigation to support your team while detecting and addressing matters of fraud.

Knowing where and how fraud occurs can be a crucial step towards improving your fraud detection and prevention policies, saving you or the company you are investigating a significant amount of money and time.

Here are five common fraud schemes and how to better identify them. Auditors and management may utilize knowledge of these schemes to help their teams better identify fraud as it happens by understanding key patterns in data.

 I was a Keynote Speaker for the IDEA Innovations Conference in Houston recently exploring Breaking the Code of Fraud. My keynote presentation covered my experience in using data analytics over my 30 years of professional work, with an emphasis on how we as an industry need to move away from experience-based fraud detection to a scientific-based model of fraud detection and prevention.

Every organization and business system has inherent vulnerabilities to fraud. Taking advantage of vast amounts of data is exactly how organizations and individuals are able to conceal a fraud for years. Staying ahead of them is all about how you approach that data and what systems you have in place to identify potential weaknesses. Let’s examine this.