Forensic Data Mining / Red Flag Analysis / Journal Entry Testing

In case you want to know what unkown fraud risks are hidden inside of your financial systems or if you want to detect fraud in your transactions you should engage us to do a red flag analysis of your financial data. This way you might not only detect possible fraud but also see, if e.g. projects are split into several transactions to undermine underwriting limits and internal controls or if there are any unusually high transactions right before financial reports are issued.

Red Flag Analysis

We offer Red Flag Analysis (aka Journal Entry Testing) to uncover hidden risks in your financial data and to detected possible fraud that needs to be investigated. With a Red Flag Analysis every transaction in your financial systems will be analyzed for known patterns of fraud and statistical anomalies. Benford Analysis and Chi Square Test are only two of more than 170 known fraud patterns and statistical anomalies that every transaction will be tested and flagged against. This way you have a chance of identifying transactions related to fraud or that will lead to misstatements in your financial reportings and to mitigate the risk they pose to your company and to install apropriate controls to avoid further damage. The results from the red flag analysis can also be used for your internal audit plans and to create "richer" samples with more conspicuous transactions for all your internal and external audits. Also it can assist you with any Fraud Investigations or Compliance Audits by effectively reducing time and effort normally needed to investigate large sets of financial transactions to identify fraudulous ones.

Forensic Data Mining

Besides financial transactions there is lots of other data that could be analysed forensically for anomalies, process weaknesses or signs of fraud. This can be data from your sales department, procurement, materials management, logistics or from your production systems. Other individual or branch specific custom queries and analysis are possible, as there is almost no analysis that can not be run on "Big Data".

Fraud Monitoring

If you use Red Flag Analysis or Forensic Data Mining contiuously, you will also get a chance to monitor slow shifts in the structure of your companies processes and transactions. This allows to take appropriate measures against financial risks arising from these changes before severe damages happen.

If you are interested in a Red Flag Analysis or a Forensic Data Mining please contact us!