The fraud triangle is a framework designed to explain the reasoning behind ones decision to commit fraud. The three stages; perceived pressure, opportunity and rationality (ACFE. 2017). The primary purpose of data analysis is to evaluate and test data using the logical reasoning of each component of information provided in relations to what happened and when. When fraud occurs; you need solid proof that will stand up in the court of law which includes an audit trail.

With todays technology often computer-assisted audit techniques (CATTs) software such as ACL is used for fraud detection, prevention, and risk management (SNHU.edu. 2017). The idea of fraud risk assessment will further help to identify the area where fraud could occur within an organization and the related schemes such as inventory fraud, account payable fraud, payroll fraud, or cash receipts fraud and it was used to commit the crime.

CAATs provides the ability to analyze, compute, and sort a mass amount of data within an organization at one time through commands such as identifying duplication, gaps, cross-tabulating between sub-folders, dollar amount limits, or cut-off dates to mention a few. Each time an activity is done a log is created within the project organized by date; while indicating where additional information is needed within a folder header.

Audits continue to be conducted at periodic intervals and express opinions on historical data. To remain a valuable and relevant service to investors, creditors, and others who use audited financial statements, auditing must find a way to evolve. Softwares such as ACL are designed to identify irregularities or patterns in transactions that could indicate the likelihood fraud or internal control weakness by identifying red flags.

Question :

How computer-assisted audit software such as Audit Command Language (ACL) can assist in these investigations.