Data Analysis for Corporate Fraud Risk: Ratio Red Flags for Fraud
The ratio red flags for fraud analysis provide indicators that are meaningful at varying levels such as store versus consolidated. It incorporates both the balance sheet and income statement for a complete analysis. The analysis has indicators for a company experiencing economic difficulty which can trigger potential earnings management in the future. It provides indicators of fraud currently occurring for broad categories of fraud as well as for specific fraud schemes. Finally, the analysis includes an initial assessment that can then transition to the continuous monitoring process as part of the on-going anti-fraud program.
Whether you are a forensic accountant interested in where to start an investigation, an internal auditor interested in due diligence for fraud, an analyst interested in identifying aggressive accounting tactics, or an external consultant interested in adding value for your clients, ratio red flags for fraud analysis will give you an effective tool for your anti-fraud process.