Fraud and Fraud Detection: A Data Analytics Approach, + Website

CHAPTER 18 Conclusion

THIS BOOK TAKES THE READER from the beginning to the end of applying data analytics with practical uses in mind. The first two chapters introduce fraud and fraud detection. The third chapter is a critical one to read before commencing any data analytics, as it details how to obtain good data for use with data analytical software. Chapter 4 provides the reader with a basic understanding of statistics. Statistical theory is the underlying basis of many analytical tests. Chapter 5 and onward details general data analytical tests and specific tests for various fraud scheme areas. Chapter 17 shows the reader how to automate procedures to simplify the data analytical process.

To conclude the book, we will take a look at financial statement fraud and learn why this important area of fraud was omitted from this book. We will also review a listing of features demonstrated with the IDEA software and end this book with a few additional words about data analytics.

FINANCIAL STATEMENT FRAUD

Financial statements are summarized transaction records obtained from detailed accounting records that are used to provide information about the financial position of the business entity. The main users of financial statements include:

• Prospective investors to determine whether to invest.
• Owners, managers, and shareholders who make business decisions.
• Lending institutions when ...