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IDEA Tech Tip: Using Benford's Law within IDEA

 

Benford's Law is a mathematical theory that has aided numerous professionals in solving fraud cases. In consultation with renowned Benford's Law expert, Dr. Mark Nigrini, IDEA's digital analytics have been updated and expanded to bring you more fraud fighting tests.

 

Last Two Digits Test

Useful in any situation where padding or number invention is suspected.

 

Second Order Test

Useful for indicating data integrity issues.

 

Summation Test

Allows you to identify significant amounts that do conform to Benford's Law.

 

Click here to see our recent interview with Dr. Mark Nigrini on the application of Benford's Law.    

 


Success Story: Washoe County's Internal Audit Department Takes a Proactive Stance on Fraud

As the lone auditor at Washoe County, Alison Gordon was faced with the responsibility of addressing high-risk issues within accounts payable, namely; segregation of duties and disbursement controls.

 

To meet these challenges, the county implemented an automated monitoring solution that acts as "a virtual super auditor and can look at multiple focus areas at any one time" according to Gordon.

 

Key Results Achieved:

  • Washoe County focuses on loss prevention as opposed to cost recovery
  • Problem identification is closer to the point of the control failure
  • 100% data coverage using IDEA as the data analytics tool


What Are You Reading? 

Good Internal Audits Focus on the Roots, Not Just the Trees

By Richard Chambers, President and CEO of The Institute of Internal Auditors

 

Benford's Law: Applications for Forensic Accounting, Auditing and Fraud Detection

Written by Dr. Mark Nigrini and Joseph T. Wells

 


As An IDEA User You May Be Interested In: 

AuditNet® Premium Content for Supported Users 
AuditNet® is the leading online portal for the global audit community, hosting a comprehensive catalogue of audit procedures. Their premium content is now available to supported IDEA users via the IDEA Support Site. 

Become a Certified IDEA Data Analyst
The CaseWare Analytics Certification provides a standard accreditation that distinguishes you as being able to utilize CaseWare Analytics technology in your daily analysis and/or audit work. The certification program is designed to aid in your professional development, by showcasing that you possess premium technical abilities and are capable of providing knowledgeable business analysis recommendations. Visit the CaseWare Analytics website to start the certification process or to learn more. 



Look For Us At These Events: 

IIA All Star Conference 
October 28th - October 30th 
Las Vegas, Nevada 

During the 2014 IIA All Star Conference the CaseWare Analytics team will be discussing how our solutions can help you move away from sampling techniques and towards auditing 100% of your data.
 

33rd World Continuous Auditing and Reporting Symposium

November 7th - November 8th

Newark, New Jersey


The World Continuous Auditing and Reporting Symposium is the leading forum for the discussion of research and practice into the application of technology to auditing and reporting. 


During the conference, Andrew Simpson, COO at CaseWare Analytics, will be presenting on "Using a Continuous Monitoring Platform for Anti-Money Laundering and Counter-Financing of Terrorism Compliance." Throughout the session, Andrew will share how continuous monitoring can help meet compliance requirements to mitigate reputational risk and prevent regulatory fines. 

    

IIA Philadelphia Fall Conference

November 24th  

Philadelphia, Pennsylvania

 

The IIA Philadelphia's Fall Conference offers a variety of educational opportunities for internal auditors on new technology, fraud and ethics, and governance risk and compliance.  

   

If you are attending the conference and interested in learning more about fraud detection and prevention we recommend you attend Andrew Simpson and Michel Caluori's session entitled: "Detect and Prevent Procurement Fraud Using Data Analysis and Continuous Monitoring Techniques". The session will be taking place from 11:20-12:35pm and earns you 1.5 CPE credits.

  

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