Woodbury, NY (PRWEB) January 27, 2014
Gettry Marcus CPA, P.C. reveals frequently employed digital analysis techniques and data mining software used by forensic investigators.
Companies and individuals that try to conceal their thefts tend to develop non-conforming digit (number) patterns that violate the blueprint of randomness. These patterns can be detected with the use of Digital Analysis techniques.
Digital Analysis is a method of analyzing groups of data to identify non-conforming patterns or anomalies within a data set. The anomalies detected can assist in leading the forensic accountant to areas where further investigation may be necessary. The growing benefit of these techniques has resulted in many computer-related applications for the forensic accountant to effectively perform financial forensic accounting investigations. This allows the forensic accountant to take an unbiased look at 100% of the data set, regardless of the volume of transactions. In addition, the use of Data Mining Software affords the forensic accountant the ability to read, analyze, compare, sample or extract data from almost any electronic source, even reports in readable PDF or printed to a file.
For example, a common type of business fraud is where a dishonest employee creates a fictitious vendor entity to funnel payments out of the victim entity. The fraudulent entity may very well contain attributes that match that of the dishonest employee, such as the same address or telephone number. Given these circumstances, Data Mining Software could provide a means to search databases and detect these attributes.
Suppose, in the example provided above, the forensic accountant is able to obtain two company reports, a list of employees containing hundreds of names and addresses of current and past employees, and an extensive list of company vendors. Both of these reports are located in only readable PDF, not in Excel or any other searchable format. The forensic accountant would need to compare these two reports in order to determine where potential non-conforming patterns exist.
With the use of Data Mining Software, the pertinent data from the two reports can be imported into separate databases. A procedure can then be completed to compare certain attributes between the two reports, specifically, in this situation, addresses and telephone numbers. If a duplicate is detected, this information can be segregated for further investigation.
Although fraudulent activity continues to grow more complex, certain aspects remain the same. People trying to conceal fraud tend to develop non-conforming digit patterns that will not generate random numbers. Digital analysis techniques, and the use of Data Mining Software, provide effective tools for the forensic accountant in the fight against fraud.
“The perpetrators of financial crimes often times use state of the art technologies to commit their wrongdoings. In order to catch these individuals, it is up to the forensic accountant to match these advanced technologies with techniques of their own. Digital Analysis and Data Mining are just two of the tools in the forensic accountants’ arsenal,” says Andrew P. Ross, Partner at Gettry Marcus CPA, P.C. and a member of the firm’s Business Valuation & Litigation Services Group.
Gettry Marcus CPA, P.C. is a Top 200 firm nationally with offices in Woodbury, Long Island and New York City. We provide accounting, tax, and consulting services to commercial businesses, high net worth individuals and various industries which include Real Estate and Health Care. We have one of the premier and most credentialed Business Valuation, Litigation and Forensic Accounting Groups in the New York Area. Our experience in diverse industries and a highly talented and experienced professional staff gives us the ability to share valuable insights into our clients’ businesses, to better understand their goals and problems and to help them attain the vision they have for their company.
Gettry Marcus is "Always Looking Deeper" to build value for our clients.
Media inquiries: Contact Fayellen Dietchweiler at 516-364-3390 ext. 225 or at fdietchweiler(at)gettrymarcus(dot)com.