Auditors Wield Mathematical Weapons to Detect Cheating
Auditors Wield Mathematical Weapons to Detect Cheating
This article is dedicated to the depiction of the case when the analysis of the accounting data may reveal the ethical misconduct and accounting fraud. The team of the forensic accountants has dedicated their activity to the assessment and evaluation of the refunds, which were issued by the national call center. The forensic accountants have identified that there was exceed number of ‘fours’ in the data – only accountants are able to reveal and address the pitfalls, implied by such issue.
It was identified that the lion share of the refund-related operations was represented by the fraudulent refunds, which were issued by the national call center to themselves or to the relative and friends. The lion share of refunds was amounted at $40. The case was analyzed while using the Benford analysis – for the data anomalies identification with the further explanation and investigation. It was revealed by the forensic accountants that not only the national regulation were breached by the accountants but in addition, the accounting ethics was violated - as the refunds were given on the basis of personal interest rather than because of the low quality of products and services purchased from the retailers or service providers (Mcginty, 2014).
The subject, covered in this article refers to the accounting ethics and fraudulent activity of eth accountants, it depicts one of the possible law breaches, which are actively applied by accountants, who violate their professional ethics and use their professional access to the data for gaining personal welfare rather than serving the population they work with. In addition, this article represents the core approaches, which may be used for detecting such fraud and violation of the accounting ethics. This example represents the fact that every illegal and unethical activity, which is covered by the set of accounting operations, may be detected by proficient and fair professionals, working in the similar areas.
References
Mcginty J.C. (2014) Accountants Increasingly Use Data Analysis to Catch Fraud. Retrieved from: http://www.wsj.com/articles/accountants-increasingly-use-data-analysis-to-catch-fraud-1417804886
