Expense Reports and Travel and Entertainment expenses are both common areas for fraud and challenging to find. These frauds are complex and contain a mix of prescriptive and behavioral analytics to detect and manage exposure.
There are 3 easy steps every company should follow to mitigate fraud risks in these areas:
Regardless of how strong your policies and enforcement are, fraud (and errors!) are still likely to occur. Data analytics techniques and emerging technologies are well suited to detect fraud of all kinds. The forensic accountant can effectively wade through data lakes and oceans to identify outliers in the data, making them red flags for investigation.
Below are 7 common schemes for these types of expenses:
How CaseWare IDEA can help:
Many companies use a combination of IDEA and applications such as Concur to electronically manage expenses. Concur can help provide spend reports, reduce document storage and decrease the approval and reimbursement cycles, and then use IDEA for the analytics. We can provide the ODBC driver for seamless data importation. Even without an expense management application, a data analytics tool such as IDEA can help you to audit the transactions, provide cost efficiencies through reporting, and identify outliers.
We specialize in using data analytics to uncover potential fraud schemes and weak controls to prevent unnecessary losses. Call us today to see how we can help you put data analytics to work!