From Chaos to Clarity in Financial Investigations
by Tracy L. Coenen, CPA, CFF |
 When the volume of financial documentation in a case exceeds the bandwidth of a forensic accounting firm, firms have traditionally relied on a technique called "scoping" or "sampling." The investigator selects a threshold below which no transactions are examined. For example, he might decide that all transactions under $1,000 are too small and insignificant to the investigation, and will only examine transactions larger than this threshold. Alternatively, the investigator might examine only transactions of a certain type or involving certain parties. There is an obvious problem with employing a scoping or sampling technique, however: important information can be overlooked.
Technological innovations have now made it possible for financial investigators to examine 100% of data, making their investigations more accurate and more thorough. The use of such sophisticated software in financial investigations represents a major paradigm shift for forensic accountants and their clients, as what initially may have looked chaotic becomes usable and clear.
Read 'From Chaos to Clarity in Financial Investigations' here.
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