Fraud Auditing, Detection, and Prevention Blog

Fraud Data Analytics: Designing the Fraud Test for the Plan

Jun 13, 2019 3:05:18 PM / by Leonard W. Vona posted in Fraud Data Analytics, Fraud Auditing, ...

In our first blog in a series on fraud data analytics, we identified a ten-step methodology for conducting a fraud data analytics project. In this blog, we will discuss steps nine and ten:

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Fraud Data Analytics: The Process of Selecting Transactions for Fraud Testing

May 21, 2019 8:00:27 AM / by Leonard W. Vona posted in Fraud Data Analytics, Fraud Auditing, ...

In our first blog in a series on fraud data analytics, we identified a ten-step methodology for conducting a fraud data analytics project. In this blog, we will discuss steps seven and eight:

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Fraud Data Analytics: Eight Critical Steps to Building Your Search Routines

Apr 18, 2019 8:29:16 AM / by Leonard W. Vona posted in Fraud Data Analytics, Fraud Risk Statements, ...

 

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Uncovering Fraud Using Fraud Data Analytics: Part 3 + 4

Mar 26, 2019 4:55:40 PM / by Leonard W. Vona posted in Fraud Data Analytics, Fraud Risk Statements, ...

Fraud Analytics: Planning considerations

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Uncovering Fraud Using Fraud Data Analytics: Part 1

Dec 1, 2018 7:45:04 AM / by Leonard W. Vona posted in Fraud Data Analytics, Fraud Risk Statements, ...

This blog is the first in a series of seven to explain how to perform fraud data analytics. It introduces a ten-step approach along with explaining the concept of fraud auditing.

For years, auditors, myself included, would launch a fraud detection project by getting the data and playing with the data. At least that was the expression. We hoped to trip across a fraud scheme.  We had no specific plan, just a simple goal: Find fraud. We did not know what we were looking for, but we were looking. Eventually, we hoped to find something. But, those days are over.

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Complex Fraud Scheme: Vendor Overbilling Part 2

Aug 6, 2018 9:47:00 AM / by Leonard W. Vona posted in Fraud Data Analytics, Fraud Risk Statements, ...

This is part two of a blog post series examining a worked exampled using fraud data analytics on a complex fraud scheme.

In this post we will look at how to use fraud data analytics designed to uncover the complex fraud scheme and the fraud audit procedures designed to provide creditable evidence that the scheme is being perpetrated by the budget owner.

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Complex Fraud Scheme: Vendor Overbilling Part 1

Aug 2, 2018 9:07:00 AM / by Leonard W. Vona posted in Fraud Data Analytics, Fraud Risk Statements, ...

In our fraud risk registers, we have identified over 100 procurement fraud schemes and over 100 overbilling fraud schemes. When these kinds of numbers are involved the idea of finding complex fraud schemes in your core business systems may seem overwhelming. However, fraud data analytics can simplify and improve the process.

In this blog we have selected a complex corruption scheme and a complex overbilling scheme to illustrate how fraud auditing can detect even the most complex schemes. The starting point is to identify the fraud risk statement and then understand how and where the scheme can occur in your organization.

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Fraud Data Analytics: A Worked Example for Ghost Employee Fraud Schemes

Jul 12, 2018 12:38:00 PM / by Leonard W. Vona posted in Fraud Data Analytics, Fraud Schemes, ...

Ghost employee schemes are a common fraud scheme during which there are people on the payroll who don’t work for the company in question but do collect a salary or remuneration.

Let’s take a closer look at how you can use fraud data analytics when creating an executing an audit program for ghost employees:

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Fraud Data Analytics for Shell Companies: A Worked Example

Jun 7, 2018 12:17:00 PM / by Leonard W. Vona posted in Fraud Data Analytics, Fraud Definitions, ...

Shell companies are a common fraud scheme you might come across when carrying out a fraud audit. Let’s take a look at how you can implement fraud data analytics into your audit when approaching shell company schemes in particular as a worked example.

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Using Fraud Data Analytics to Build a Fraud Data Profile

Mar 30, 2018 5:21:27 PM / by Leonard W. Vona posted in Fraud Data Analytics, Fraud Data Profile ...

When it comes to fraud, no audit plan is going to fit all. Each fraud scenario in your audit scope needs its own fraud data analytics plan and fraud audit procedures. An audit plan isn’t just a document to create and file away as a matter of process – any auditor involved in future detection and prevention will need this to have the correct information that will allow them to find and reveal which fraud scenario is occurring. In short, your fraud audit plan is an essential component in detecting and preventing fraud. 

Once an auditor has a plan and the fraud scenarios at their disposal, the best approach to building a fraud data profile involves using fraud data analytics. For many, this might feel like no more than a buzzword in the industry that adds little value to conversations on fraud but when we talk about fraud data analytics at Fraud Auditing Inc., we mean something very specific, with measurable outcomes, which are essential to any fraud-based approach. 

Here’s a look at the best practices when it comes to data analytics and how it can add real value to your approach.

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