Fraud Data Analytics

Fraud data analytics (FDA) is the process that allows the auditor/investigator to evaluate the entire set of data to identify fraud red flags, which are related to a specific fraud scenario; they will then alert the auditor/investigator to focus on certain transactions and areas to review controls, conduct interviews, and examine source documents to determine whether a fraud scheme is occurring or there is simply an error or mistake. Thus, fraud data analytics aims not to identify fraud but rather to identify red flags that would assist the auditor/investigator generate a sample of transactions to examine further in detail. Fraud data analytics does not replace the “old fashion” audit and investigative procedures of gathering relevant and sufficient evidence to conclude whether a fraud scheme has been perpetrated.

Why you should take this course

For users with an intermediate knowledge of this topic, and are searching for a deeper understanding of its evolving complexities.

Here are the topics we'll cover.

1. What is Fraud Data Analytics?

   • Fraud Overview
   • Fraud Schemes and Red Flags
   • Fraud Data Analytics Team
   • Tools and Resources
   • General Testing Methodologies

2. Fraud Data Analytics Program

   • Fraud Risk Assessment (FRA)
   • FRA Ratings and Response
   • FDA Development
   • Data Sources
   • Challenges in Using Data Analytics
   • Mitigating Skill Gaps with Tools

3. Cultivating Additional Skills

   • Soft Skills Development for Auditors
   • Privacy Concerns
   • Team Structure
   • Navigating Difficult Conversations

4. Travel and Entertainment

   • Schemes
   • Associated Red Flags
   • FDA Tests Design
   • Interpreting Test Results and Follow-Up

5. Payroll

   • Schemes
   • Associated Red Flags
   • FDA Tests Design
   • Interpreting Test Results and Follow-Up

6. Credit Cards and P-Cards

   • Schemes
   • Associated Red Flags
   • FDA Tests Design
   • Interpreting Test Results and Follow-Up

7. Accounts Payable and Disbursement

   • Schemes
   • Associated Red Flags
   • FDA Tests Design
   • Interpreting Test Results and Follow-Up

8. Shell Companies

   • Schemes
   • Associated Red Flags
   • FDA Tests Design
   • Interpreting Test Results and Follow-Up

9. Procurement

   • Schemes
   • Associated Red Flags
   • FDA Tests Design
   • Interpreting Test Results and Follow-Up

10. Anti-Bribery and Corruption (ABC)

    • Schemes
    • Associated Red Flags
    • Committed by Company
    • FDA Tests Design
    • Interpreting Test Results and Follow-Up

11. Financial Statements, Journal Entries, Revenue, and Liabilities

    • Schemes
    • Associated Red Flags
    • FDA Tests Design
    • Interpreting Test Results and Follow-Up

12. Findings and Value

    • Analyzing and Presenting Findings
    • Quantifying FDA Value