Assignment:
This module you learned about the different ways to detect fraud. Fraud examiners and investigators are now employing different approaches to fraud detection, data-driven analysis, especially when analyzing massive amounts of data and information to identify fraud symptoms and red flags.
Given what you have learned in this module and the required reading assignments, answer the following questions:
- How are the six (6) steps of the data-driven analysis approach to fraud detection different from the traditional approach to fraud detection?
- Why is data-driven analysis more effective than the traditional approach to fraud detection?
- What are some drawbacks to using the data-driven analysis approach to fraud detection?
Please make sure that your post answers each question completely and comprehensively. Be detailed in your discussion response. Be sure to support your statements with logic and argument, citing any sources referenced.
References
Albrecht, W. S., Albrecht, C. O., Albrecht, C. C., & Zimbelman, M. F. (2018). Fraud examination Sixth Edition. Mason, OH: South-Western Cengage Learning.
Albrecht, W. S., & Hoopes, J. L. (2015). Why audits cannot detect all fraud. (cover story). CPA Journal, 84(10), 12-21.
Association of Certified Fraud Examiners (ACFE). (2014, May 13). Red flags of fraud. ACFE IIA Austin Chapter.
McNeal, A. (2012a). What's your fraud IQ? Additional red flags. Journal of Accountancy, 214(2), 32-37.
McNeal, A. (2012b). What's your fraud IQ? Data analysis. Journal of Accountancy, 214(6), 42-46.
McNeal, A. (2017). What's your fraud IQ? This month: Effective fraud risk management. Journal of Accountancy, 223(6), 32-35.
Tschakert, N., Needles Jr., B., & Holtzblatt, M. (2016). The red flags of fraud: Internal auditors' knowledge of the business makes them ideal candidates to detect unethical behaviors. Internal Auditor, 73(5), 60-65.