Internal auditors and others involved in compliance-related diligence work should be using data-driven tools to become more empowered and efficient to better prevent, detect and remediate wrongdoing. After all, uncovering fraud can be difficult. It involves delving into the details, thinking like a fraudster and using in-depth knowledge of the organization’s processes and systems to increase awareness of where frauds may be hiding.
With in-person oversight of operations less practical now, fraud risk assessments and subsequent testing must consider how data analytics can play an integral role in preventing and uncovering misconduct.
In Accounting Today, Joshua Dennis, Eva Weiss and Valerie Loverro explain how auditors can leverage data analytics to make schemes and scenarios testing, as well as fraud brainstorming, most productive. The authors also outline how to use data analytics to help uncover those “needle in a haystack” areas for further consideration.