Data Analytics

Which of the following is NOT a procedure that will be performed using Benford’s law:

• The first two digits test

• The random 2 digits test

• The first three digits test

• The last two digits test

All the following are drawbacks in using data analytics for fraud detection, EXCEPT:

• Reporting of ‘false trues’

• Usage of wrong technique

• Populations with extremely large volumes of data

• Areas involving high levels of judgment

The name of a tool to detect lies - commonly known as ‘lie detector' is:

• Polygraphs

• Regression plotter

• Mind charter

• Sedation graph

If the population has both positive and negative numbers, the Benford’s test is run using:

• 2 separate tests for positive and negative values

• Absolute values of the numbers in data base

• Netting of positive and negative numbers

• Benford’s law cannot be applied.

Primary responsibility for fraud prevention lies with:

• SFIO (Serious Fraud Investigating Office)

• Internal Auditor

• External auditor

• Management

Which of the following is a scheme of financial statements fraud:

• Fictitious Revenues

• Improper asset valuations

• Concealed liabilities and expenses

• Generally a combination of all the above

A Data Analytic exercise of General Ledger data using Tableau can be used to detect all the following frauds – EXCEPT:

• Completeness of trial balance produced for audit.

• Unauthorized sales made to related parties

• Forged cheque used to pay cash to a supplier

• Netting of a receivable balance with payable balance to conceal cash receipts

Select one BEST response. Embedding keyword search as a tool in GL module helps to identify which type of irregularities:

• Wrong depreciation calculated for a class of fixed assets

• Illegal gratification to a government official

• An error of omission in the bank reconciliation statement

• A missing disclosure in the financial statements

Tableau based tools can analyze volumes of data up to:

• 1 to 2 million line items

• 2 to 5 million line items

• 5 to 10 million line items

• More than 10 million line items

Journal Entry testing (JET) as a tool for identifying abnormal entries is effective for all the following types of abnormal entries – EXCEPT:

• Entries made on weekends and official holidays by chief accountant

• Entries made by marketing manager using the accountant’s credentials

• Entries made and reversed on next days.

• Entries made to rarely used accounts