Where most financial experts around the world stress the importance of establishing fraud detection as a key audit standard, many companies are affected by their inability to process the unfathomably large quantities of accounting journal entries and extract useful data that not only highlights fraudulent attempts in the company’s journals but also leads to elimination of such practices from the workplace. In the accounting world, it can indeed be very challenging for a company to dig massive amount of data and highlight the fraudulent activities that are nicely covered up. The good news is that there are indeed ways of achieving the impossible through a process known as data mining.
Understanding Data Mining:
Data mining is the process of digging into a large collection of data and identifying previously unknown patterns of potentially useful information. Data mining is a scientific and unconventional discovery of knowledge and information buried deep within piles of data. By applying data mining techniques to accounting entries, you can successfully uncover fraudulent entries made in the journals by establishing patterns that are otherwise unavailable.
Data is a packet of information that encloses a fact, number or text. Digital data can be processed by a computer. Over time, organizations