© D.L. Crumbley
Behavioral Concepts Important
“Not all fraud schemes can effectively be detected using data-driven approaches.
Instances of corruption-bribery, kickbacks, and the like – and collusion consistently involve circumvention of controls.
Searching relevant transaction data for patterns and unexplained relationships often fails to yield results because the information may not be recorded, per se, by the system.
Behavioral concepts and qualitative factors frequently allow the auditor to look beyond the data, both with respect to data that is there and the data that isn’t.”
Source: S. Ramamoorti and S. Curtis, “Procurement Fraud & Data Analytics, “Journal of Government Financial Management, Winter 2003, Vol. 52, No. 4, pp. 16-24.