This innovative tool was developed from our extensive experience with forensic accounting matters on behalf of the country's largest AMLAW 100 law firms, involving hundreds of thousands of transactions.
According to a a recent study by the Association of Certified Fraud Examiners, the typical organization loses 5% of revenues in a given year as a result of fraud. The median loss for all cases in the ACFE study was $150,000, with nearly a quarter of cases causing losses in excess of $1 million. Fraud is real – and often undetected – and especially evident in smaller companies with oftentimes limited controls and processes.
Periscope's standard anaylsis, which utilized IDEA Data Analysis software from Audimation Services, Inc., can conduct analytical procedures to detect the following:
- Duplicate Payments – a possible indicator of fraud or error that combines data variables such as payment amount, invoice date, and invoice number
- Journal entries posted on weekends or holidays
- "Vendors" with same/similar addresses as employees
- Potential Excess Payroll – which can be indicated by duplicate Social Security numbers or out of the ordinary "bonus" payments
- Potential anomalies per Benford's Law – this analysis predicts the frequency with which certain digits should appear in a data set and can alert you to possible errors, fraud, biases, or processing inefficiencies.
- We can also create custom data analytics designed to assist with industry or incident-specific issues or benchmark your performance vs. your peer group.
With the advent of big data, companies of all sizes now have the opportunity for an improved view into the financial operations of their companies, so they can focus more on customers and higher value work and worry less about financial fraud, lack of controls, or other common issues facing growing middle market companies.