Unearthing Fraud, Waste, Misuse
Data analysis may boost recoveries, plug cash leaks
Restructuring specialists commonly analyze books and records, cash journals, check registers, vendor master files, and accounts payable ledgers to identify potential avoidance actions to augment recoveries. This work is a common exercise for restructuring specialists and may prove fruitful for an ongoing operation where funds could continue to evaporate through ongoing forms of fraud, waste, and misuse. Today’s analytical tools and techniques, in the hands of capable professionals, can shine a fresh light on the same books and records used to identify avoidance actions, often revealing three key areas of possibly value erosion:
- Employee and/or vendor-related fraud
- Overpayments to vendors
- Vendor list inefficiencies, anomalies, and oversights
In addition to pinpointing potential additional recoverable funds, advanced data analysis can help identify not only where potential fraud, waste, and misuse might be happening, but why it’s happening and how to stop it. In fact, the tests described briefly in this article can help lay the foundation for deploying continuous fraud monitoring systems.
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