The data-driven method of fraud detection does not include which of the following characteristics:
A) Determining symptoms that the most likely frauds would generate
B) Understanding the business
C) Understanding and using Benford's law to analyze company databases
D) Understanding what kinds of frauds could occur

Question

Quizplus · Accepted Answer

A: A is incorrect because the proactive method of fraud approach does include determining symptoms that the most likely frauds would generate. This occurs during the deductive approach because you are searching for specific frauds that could occur and do find these frauds, you must know the symptoms.
B: B is incorrect because understanding the business is the first step in performing the proactive approach. Again, you are trying to find what kind of fraud could take place in the company or business; therefore, the initial step is to understand the business.
C: C is correct.
D: D is incorrect because you must understand what kinds of frauds could occur to properly perform the proactive approach.

The Data-Driven Method of Fraud Detection Does Not Include Which