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CONCLUSION

Fraud occurs in any organization as it is not possible to invoke the level of control needed to eliminate fraud. If there are too many restrictions or controls in place, those restrictions prevent employees from doing their jobs properly.

As auditors or investigators, we can only test for red flags of fraud. Data analytical software can assist us in sifting through all the transactions to lag anomalies. Being able to recognize fraud may allow us to further refine our tests to reduce the number of anomalies to investigate.

Before we can perform data analytics, we must understand the data analysis cycle and know how to obtain the electronic data files for our audit or analysis. We must ensure that the data is usable, complete, and accurate.

NOTES

1. Financial Reporting Council, "FRC Prohibits the Use of Internal Audit Staff on the External Audit Team," accessed July 2, 2013, frc.org.uk/News-and-Events/ FRC-Press/Press/2013/June/FRC-prohibits-the-use-of-internal-audit-staff-on-t .aspx?goback=%2Egde_107948_member_251979920.

2. U.S. Securities and Exchange Commission, "Final Rule: Management's Report on Internal Control Over Financial Reporting and Certification of Disclosure in Exchange Act Periodic Reports; Rel. No. 33-8238," accessed June 30, 2013, sec.gov/rules/ final/33-8238.htm.

3. "Association of CertifiedFraudExaminers—2012 ReporttotheNations," accessedJune 17, 2013, acfe.com/rttn.aspx.

4. BusinessDictionary.com, "DataMining," accessed July 1,2013, businessdictionary .com/dei nition/data-mining.html.

5. BusinessDictionary.com, "Data Analysis?," accessed July 1, 2013, businessdictionary .com/dei nition/data-analysis.html.

6. Microsoft Office, "Access Database Software and Applications," accessed July 13, 2013, ofice.microsoft.com/en-ca/access.

7. Microsoft Office, "SpreadsheetSoftware, MicrosoftExcel," accessed July 13, 2013, ofice.microsoft.com/en-ca/excel.

8. 'ACL Compliance, Audit, Governance & Risk Software—Data Analytics and Cloud-Based GRC Management," accessed July 13, 2013, acl.com.

9. "Arbutus Audit and Compliance Analytics, and Continuous Monitoring Solutions," accessed July 13, 2013, arbutussoftware.com.

10. "IDEA-CaseWare International," accessed July 13,2013, caseware.com/products/ idea.

11. "InformationActive.com—Data Analytics for Excel and SQL Databases," accessed July 13, 2013, informationactive.com.

12. Richard Ainsworth, "Zappers&Phantom-Ware:AGlobal Demand forTaxFraud Technology," accessed November 20, 2013, taxblog.com/rainsworth/zappers-phantom-ware-a-global-demand-for-tax-fraud-technology.

 
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