Case Study
You are in your first month as an internal auditor in the corporate offices of Cover-Up Fraud-Mart, a large regional variety store chain based in Los Angeles. Your manager has just given you a general overview of the company's problems with fraud. In fact, losses from fraud exceed losses from shoplifting by tenfold, and management wants your perspective on what it can do to proactively detect fraud. From your fraud audit- ing class, you know that the data-driven approach is one of the most effective detection methods.
1. Prepare a project plan for implementing the six- step data-driven approach. List the types of team members who should be involved in each step, how long each step will take, and cost estimates for each step.
2. What software package will you need to purchase to complete the process? Provide arguments for your decision.
3. What techniques should be run in Steps 4 and 5?