Date of Award

Spring 5-19-2016

Degree Type

Thesis

Degree Name

Master of Science (MS)

Department

Computer Science

First Advisor

Paul Zikmund

Abstract

This paper focuses on proactive fraud detection software tools and how these tools can help detect and prevent possible fraudulent schemes. In addition to relying on routine audits, companies are designing proactive methods that involve the inclusion of software tools to detect and deter instances of fraud and abuse. This paper discusses examples of companies using ACL and SAS software programs and how the software tools have positively changed their auditing systems.

Novelis Inc., an aluminum and recycling company, implemented ACL into their internal audit software system. Competitive Health Analytics (Division of Humana) implemented SAS in order to improve their overall health analytics and databases. The use of these tools enabled them to monitor the safety of their products and detect red flags of healthcare fraud.

Though fraud is rampant through our systems, this paper will investigate how these different software programs have helped detect fraud in schemes such as asset misappropriation, bribery and corruption, and financial statement fraud. This paper posits that companies can quickly uncover potential fraud schemes without exhausting a lot of significant amounts of time and money by implementing proactive fraud detection software tools. The paper will also address software tools used for managing the risk of fraud along with specific benefits incurred through use of these tools.