CPE Session 16: Sunday, August 5, 8:00 AM – 4:00 PM

Computer Assisted Fraud Examination and Detection

(Auditing)

Description/Objectives:
This workshop will present proactive approaches to fraud detection using the computer. The first half of the workshop will involve a hands-on demonstration of Picalo, an open-source software application for data analysis and fraud detection. Basics of the Python language, in which Picalo is written, will be discussed. Picalo is a cross-platform data analysis application that has routines specifically for fraud detection. Picalo supports scripting and it is extensible. The workshop will discuss and demonstrate the various Picalo "Level 1" routines for data analysis such as sorting, filtering, finding gaps and duplicates, grouping, stratifying, digital analysis (Benford's law), and trending. "Level 2" routines in Picalo are called "detectlets" that work like wizards in Microsoft Excel and allow nontechnical users to run advanced fraud detection routines without having to write programs or scripts. The process of creating a Picalo detectlet will be discussed and demonstrated with hands-on exercises. The second half of the workshop will present a set of instructional cases using Picalo for classroom use. The cases to be presented have been successfully used in a graduate computer-assisted fraud examination class.

Special Note: Participants are requested to bring a laptop computer to the workshop.

Presenters:
Conan Albrecht, Brigham Young University
Uday Murthy, University of South Florida

Note: CPE fields of study are in parentheses