Today’s TopicsData Analysis & Fraud DetectionData Analysis ProcessData Analysis SoftwareData Access Challenges and ToolsData Analysis TechniquesBenford’s LawFinancial Statement AnalysisFORENSIC ACCOUNTING - BA124 - Fall 2012 Slide 106-1Today’s TopicsData Analysis & Fraud DetectionFinancial Statement Analysis and DetectionFORENSIC ACCOUNTING - BA124 - Fall 2012 Slide 106-2Data Analysis & Fraud DetectionData Analysis ProcessData Analysis SoftwareData Access ChallengesData Analysis TechniquesFORENSIC ACCOUNTING - BA124 - Fall 2012 Slide 106-3Data Analysis ProcessUnderstand the businessBrainstorm fraudsIdentify fraud symptomsUse technology to collect symptom dataAnalyze the dataInvestigate selected symptomsFORENSIC ACCOUNTING - BA124 - Fall 2012 Slide 106-4Data Analysis SoftwareACLCaseWarePicaloMicrosoft + Active DataFORENSIC ACCOUNTING - BA124 - Fall 2012 Slide 106-5Data Access Challenges and ToolsOpen database connectivity (ODBC)Text importing-extensible markup language (XML)Data warehousingFORENSIC ACCOUNTING - BA124 - Fall 2012 Slide 106-6Data Analysis TechniquesBenford’s LawTime trendsFuzzy matchingMatosas and real time analysesFORENSIC ACCOUNTING - BA124 - Fall 2012 Slide 106-7Benford’s LawOccurrence of digits in a random number sequenceSeries starting with 1’s greater than 2’s; 2’s greater than 3’s etc.Effective for locating falsified trendsFORENSIC ACCOUNTING - BA124 - Fall 2012 Slide 106-8Financial Statement AnalysisMethodologyTrendsRatiosHorizontal analysisVertical analysisWhat looks out of the