Internal Audit Training, IT Audit Training Courses, Information Security Training - CPE Interactive

Continuing Professional Education for Audit, Assurance, & Info Security

Course Description

If robust data analytics programs had been the norm twenty years ago, would Enron, WorldCom or the countless other major corporate fraud scandals have every reached the magnitude they did? Or even have occurred at all? All organizations are subject to fraud risk. ACFE studies show that on average 5% of revenue is lost to internal fraud schemes within an organization…every year. Utilizing effective data analytics as part of an organization’s fraud management program can reduce the average fraud scheme’s duration from 18 months down to mere weeks, or almost eliminate it. More importantly a robust fraud data analytics program can be the strongest deterrent in an organization.

This course is designed to introduce the participants to the techniques currently being used by leading data analytics programs through the use of case studies, best practices and interactive exercises. Participants will gain a basic understand of fraud and how it occurs in organizations and the specific techniques used to identify and quantify fraud.

Learning Objectives

  • Understand how data analytics can be used in a fraud management program
  • Understand Fraud basics and assessing fraud risk
  • Learn techniques for detecting and preventing fraud in your organization
  • Understand professional standards regarding the use of data analytics in fraud management
  • Learn how to start a fraud data analytics program

Course Outline

Understanding Fraud

  • The Fraud Triangle
  • ACFE 2014 Report to the Nation – Fraud Trends
  • Fraudsters – characteristics and behaviors
  • Fraud Schemes and Scenarios
    • Management override
    • Corruption
      • Financial Statement
      • Asset Misappropriation

Principals for Fighting Fraud in an Organization

  • Governance
  • Fraud Risk Assessment
  • Prevention
  • Detection
  • Reporting

Using Data Analytics for Fraud Management

  • Detection
    • Using Analytics in Detection of Fraud
  • Fraud Focused Continuous Auditing and Monitoring
  • Fraud Investigations
    • Gathering Evidence
    • Data Integrity
    • Legal requirements
    • Who should conduct investigations
  • Prevention
  • Deterrence

New IIA and ISACA Fraud-Detection Standards

  • IIA GTAG #13 and GTAG #16
  • ISACA “Data Analytics: A Practical Approach”
  • AuditNet Survey results on Data Analytics for Fraud Among Auditors

Getting Started with Data Analytics/CAATs

  • Data Analytics Terminology
    • Continuous Auditing vs. Continuous Monitoring
    • CAAT’s vs Data Analytics
    • Big Data
  • Conducting a Fraud Risk Assessment
    • Identifying the fraud universe
    • Identifying and Assessing Risks
      • Inherent Risk
      • Likelihood and Significance
      • People / Departments
      • Responses to Risks
      • Residual Risk
  • Scoping the use of data analytics based on the Fraud Risk Assessment results
  • Identifying the Data to be Mined
    • Identify investigation objectives
    • Feasibility assessment on how to get the data
    • Involving data custodians and/or owners Define the required data parameters
    • Identify the data fields/files needed
  • Acquiring the data
    • Data Mapping
    • Clean Data
    • Vetting the Data
    • Working with IT
  • Physically accessing and importing the data
  • Risks of using data originals or copies
  • Where to import the data
  • Avoid corrupting data

Fundamental Data Analysis Techniques

  • Duplicates
  • Matching
  • “Like” attributes and transitions
  • Gap Testing
  • Compliance testing & verification
  • Red Flag attributes

The Next Level – Advance Techniques

  • Regression Analysis
  • Benford’s Law
  • Reasonableness Testing
  • Fuzzy Logic

Understanding Trends and Patterns in Data

  • How to spot them
  • Understanding what the data is telling you
  • Red Flags versus changes in the business

Specific Data Analytics techniques for:

  • Payroll
  • Accounts Payable & Expenses
  • Cash
  • Inventory
  • Corruption
  • Financial Statement Fraud

Additional Information

Who Should Attend
  • Internal and external auditors
  • Internal control professionals
Learning Level






Advanced Preparation


Recommended Prerequisites

General understanding of fraud schemes, fraud auditing techniques and computer-based auditing.

Session Duration

Online: N/A

On Site: 2 days

CPE Credits: 16