Excel Vs Fraud An AnalysisCA Saran Kumar [email protected]+91
9640208282Date: 22.03.2016 byICAI Hyderabad
CA Saran Kumar U +91 9640208282 [email protected] on
Facebook, Whatsapp, Candy CrushMS Excel and Fraud An
introductionSimple but SeriousDont believe what you see a Case
StudyData Summary PatternBenfords LawQ & AThis evening
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3CA Saran Kumar U +91 9640208282 [email protected] talk
fun
CA Saran Kumar U +91 9640208282 [email protected]
Excel and Fraud - Introduction
A Database Schema of a database system is its structure
described in a formal language supported by DBMSA Database Table is
a collection of related data held in a structured format within a
database. It consists of fields (columns) and rows.A queryis used
to extract data from thedatabasein a readable format according to
the user's requestA Report is the formatted result of database
queries and contains useful data for decision-making and analysisA
View is the result set of stored query on the data (SQL based)CA
Saran Kumar U4
CA Saran Kumar U +91 9640208282 [email protected] and
Fraud - Introduction
Fraud is deliberate deception to secure unfair or unlawful
gain
FraudsterFraud DetectorExcel can be used to manipulate the
numbersExcel techniques can be used to detect the manipulated
numbersExcel can be used to transform the Data into structured
tablesExcel can be used to create Summaries from structured
tablesExcel can be used as one of the medium to apply the
techniques like Benfords Law etc
A Database Schema of a database system is its structure
described in a formal language supported by DBMSA Database Table is
a collection of related data held in a structured format within a
database. It consists of fields (columns) and rows.A queryis used
to extract data from thedatabasein a readable format according to
the user's requestA Report is the formatted result of database
queries and contains useful data for decision-making and analysisA
View is the result set of stored query on the data (SQL based)CA
Saran Kumar U5
CA Saran Kumar U +91 9640208282 [email protected] but
SeriousSUM Case StudyMerged Cells Case StudySumif Case StudyImport
of Data Case Study
(Refer the Excel files)
A Database Schema of a database system is its structure
described in a formal language supported by DBMSA Database Table is
a collection of related data held in a structured format within a
database. It consists of fields (columns) and rows.A queryis used
to extract data from thedatabasein a readable format according to
the user's requestA Report is the formatted result of database
queries and contains useful data for decision-making and analysisA
View is the result set of stored query on the data (SQL based)CA
Saran Kumar U6
CA Saran Kumar U +91 9640208282 [email protected] Summary
Pattern Understanding the raw data sourceUnderstanding the raw data
formatImporting to MS Excel (either Fixed Width or Delimited)Clean
up activityDeletion of unnecessary rows and columnsClearing the
unnecessary contentPresenting in a proper tabular format with
suitable headingsAnalysing the data by using subtotal, sort, filter
and pivot table featuresInterpretation of clues taken out from the
data
CA Saran Kumar U +91 9640208282 [email protected] Analysis
FeaturesConsolidationPivot Tables
CA Saran Kumar U +91 9640208282 [email protected]
FunctionsSumif(s)IfVlookupReverse Vlookup
CA Saran Kumar U +91 9640208282 [email protected] Law
is also called the First-Digit LawBenfords Law predicts the
occurrence of digits in large sets of dataSimply put, this law
maintains that we can expect some digits to occur more often than
othersFor example, the numeral 1 should occur as the first digit in
any multiple-digit number about 30.1% of the time, while the
numeral 9 should occur as the first digit only 4.6% of the
timeBenfords Law
CA Saran Kumar U +91 9640208282 [email protected]
of x as first digit = Log10(1/x+1)Occurrence of 1 = Log10(1/1+1) =
30.10%Occurrence of 2 = Log10(1/2+1) = 17.61%Occurrence of 3 =
Log10(1/3+1) = 12.49%Occurrence of 4 = Log10(1/4+1) =
9.69%Occurrence of 5 = Log10(1/5+1) = 7.92%Occurrence of 6 =
Log10(1/6+1) = 6.69%Occurrence of 7 = Log10(1/7+1) =
5.80%Occurrence of 8 = Log10(1/8+1) = 5.12%Occurrence of 9 =
Log10(1/9+1) = 4.58%
Benfords Law Occurance
CA Saran Kumar U +91 9640208282 [email protected] someone
creates false transactions or commits a data-entry error, the
resulting numbers often deviate from the laws expectationsThis is
true when someone creates random numbers or intentionally keeps
certain transactions below required authorization levelsBenfords
Law Vs Red Flag
CA Saran Kumar U +91 9640208282 [email protected] numbers
in the data set should describe the same objectThere should be no
built-in maximum or minimum to the numbersThe numbers should not be
assignedExample: Invoice Numbers, Bank Account Numbers, Telephone
Number etcDoes not apply to uniform distributionBenfords Law
Conditions
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[email protected]://www.nseindia.com/products/content/all_daily_reports.htm
Practical Case Studies
CA Saran Kumar U +91 9640208282 [email protected] these
numbers in this particular order???
Think Box8549176320
EightFiveFourNineOneSevenSixThreeTwoZero
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