LITMIR.BIZ

      Cover image: ©iStock.com/Mr.Vi

      Cover design: Wiley

      Copyright © 2015 by Sunder Gee. All rights reserved.

      Published by John Wiley & Sons, Inc., Hoboken, New Jersey.

      Published simultaneously in Canada.

      No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, (978) 750-8400, fax (978) 646-8600, or on the Web at www.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, (201) 748-6011, fax (201) 748-6008, or online at http://www.wiley.com/go/permissions.

      Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. You should consult with a professional where appropriate. Neither the publisher nor author shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.

      For general information on our other products and services or for technical support, please contact our Customer Care Department within the United States at (800) 762-2974, outside the United States at (317) 572-3993 or fax (317) 572-4002.

      Wiley publishes in a variety of print and electronic formats and by print-on-demand. Some material included with standard print versions of this book may not be included in e-books or in print-on-demand. If this book refers to media such as a CD or DVD that is not included in the version you purchased, you may download this material at http://booksupport.wiley.com. For more information about Wiley products, visit www.wiley.com.

       Library of Congress Cataloging-in-Publication Data:

      Gee, Sunder.

      Fraud and fraud detection: a data analytics approach/Sunder Gee.

      pages cm. – (Wiley corporate F&A series)

      Includes index.

      ISBN 978-1-118-77965-1 (hardback) – ISBN 978-1-118-77967-5 (ePDF) – ISBN 978-1-118-77966-8 (ePub) – ISBN 978-1-118-93676-4 (oBook) 1. Fraud. 2. Managerial accounting. 3. Data mining. I. Title.

      HV6691.G44 2014

      658.4′73 – dc23

      2014021352

      Foreword

      I MET SUNDER MANY YEARS ago when he was researching advanced methods to improve his work through Benford’s Law analysis. He immediately displayed a passion and excitement for thinking outside of the box that inspired a professional relationship based on our common enthusiasm for IDEA. Being a long-time IDEA user with experience in various types of audits, I have always been keen on learning new and innovative ways to use the tool and push it to its limits, especially now working on the development side of the product.

      Today’s fast-paced society has enabled most actions, transactions, and activities to be captured and saved on various databases in a matter of minutes. Because of this, fraud has grown in sophistication and become increasingly difficult to identify. However, this influx of technology and data capturing has also provided fraud examiners with the ability to use fraud detection methods that rival perpetrators of fraud in both complexity and innovation. The increased amount of data collected by innumerable systems in turn increases the possibilities available to fraud examiners. It is through the use of data analytics that fraud examiners can combat fraud and detect anomalies in a timely and efficient manner.

      This book will lead you through the possibilities I have mentioned and will explain in full detail the different mathematic models and advanced analytics available for use in the identification of suspicious transactions. It is with great enthusiasm that I recommend this book to enhance your fraud detection process. I am certain that this book will inspire all who read it to approach fraud creatively regardless of experience level. While the subject matter within this book may appear to be complex, Sunder eloquently outlines his ideas and experience along with research into various theoretical concepts that result in an easily digested guide by even the most novice of auditors while still providing valuable insight to seasoned auditors as well.

      Sunder’s experience in electronic commerce audit is highly recognizable in this book as it reveals countless real-life examples of applying innovative fraud detection methods. Sunder’s longstanding expertise as an IDEA user since the days of DOS prevails in the pages of this book. His knowledge of computer-assisted audit technology and techniques combined with an ability to think creatively will lead readers on a journey that opens their eyes to the various possibilities available when a thirst for knowledge and an analytic mind-set are combined.

      Preface

      FRAUD AND FRAUD DETECTION takes a data analytics approach to detecting anomalies in data that are indicators of fraud. The book starts by introducing the reader to the basics of fraud and fraud detection followed by practical steps for obtaining and organizing data in usable formats for analysis. Written by an auditor for auditors, accountants, and investigators, Fraud and Fraud Detection enables the reader to understand and apply statistics and statistical-sampling techniques. The major types of occupational fraud are reviewed and specific data analytical detection tests for each type are discussed along with step-by-step examples. A case study shows how zapper or electronic suppression of sales fraud in point-of-sales systems can be detected and quantified.

      Any data analytic software may be used with the concepts of this book. However, this book uses CaseWare IDEA software to detail its step-by-step analytical procedures. The companion website provides access to a fully functional demonstration version of the latest IDEA software. The site also includes useful IDEAScripts that automate many of the data analytic tests.

      Fraud and Fraud Detection provides insights that enhance the reader’s data analytic skills. Readers will learn to:

      • Understand the different areas of fraud and their specific detection methods.

      • Evaluate point-of-sales system data files for zapper fraud.

      • Understand data requirements, file format types, and apply data verification procedures.

      • Understand and apply statistical sampling techniques.

      •

Скачать книгу