Exposing the Iceberg

Parker recognized that the existing programs were only analyzing apparent situations with minimal consideration to potential submerged fraud “icebergs.” She didn’t realize that her quest to improve her fraud detection plans would lead her to instituting cutting-edge analytics involving the venerable Fraud Triangle and company e-mails. (Our fictitious Bonnie Parker represents all fraud examiners looking for the truth.)

ECONOMIC DOWNTURN CHANGES EVERYTHING 

Due to recent company layoffs, the economic downturn, and increased pressure to meet analysts’ expectations, Parker knew traditional fraud awareness programs and automated tests wouldn’t suffice to weed out significant fraud at its earliest stages. Under normal circumstances, her company would seek to identify fraud-risk areas and develop high-level mitigating factors. However, in these uncertain times, additional efforts are required, which include the assessment of the controls that address each risk factor as well as substantive testing using data analytics.