Forensics Journal - Stevenson University 2015 | Page 48

STEVENSON UNIVERSITY

is legally admissible as evidence in U.S. criminal cases at the federal,
state, and local levels. This fact alone substantiates the potential
usefulness of using Benford’s Law” (Singleton, 2011). Conversely,
one disadvantage of Benford’s Law is the large-scale approach used to
detecting fraudulent information. A Benford’s Law analysis populates
a broad view of where the fraud could be taking place, instead of a
narrowly focused view. This broad view could waste the time and
resources of forensic accountants who are searching through a wide
array of fraudulent possibilities.

DATA MINING SOFTWARE
Data mining software is a tool utilized by forensic accountants to
“look for patterns in large batches of data” (“Data Mining,” 2014).
Data mining is useful in tracking terrorist’s financial sources because
it is capable of discerning unusual patterns and identifying outof-the-ordinary transactions (not attributable to normal business
transactions).
The Department of Homeland Security (DHS) uses data mining
tools to collect an individual’s identifying markers. Some of these
markers include educational or employment background and
financial transactions “that contain [the] name or the identifying
number…assigned to the individual” (5 USC 552a, 1975). DHS
utilizes data mining software in an effort to protect citizens from
terrorists and national threats of terrorism. However, personal
information is sometimes used against the same citizens it was meant
to protect. One example of DHS using personal information against a
United States citizen was in 2012. DHS used social media monitoring
to single out a photographer for the local Miami-Dade Police. The
photographer, Carlos Miller, “was going to be taking photographs of
the protests at Occupy Miami. DHS said their [practice of ] Facebook
monitoring is a normal procedure” (Smith, 2013). However, Miller
felt DHS infringed on his Constitutional rights.

ACCOUNTING COMMAND LANGUAGE (ACL) SOFTWARE
Accounting Command Language (ACL) software aids forensic
accountants who analyze transaction data to identify risk and
compliance within an organization, and has transformed the way
“risk and compliance groups identify, investigate, and mitigate
business risks” (“Products,” 2014). Forensic accountants utilize
ACL software to uncover instances of fraud, lapses in internal
controls, and the misappropriation of funds, as well as quickly
analyze and log transactional data to seek instances of duplicate
and overpriced vendor invoices, employee mismanagement of
funds, fictitious vendors, and other instances of fraud, waste,
and abuse. The best use of ACL software is to analyze business
records (i.e. payroll and accounts payable and receivable) for
company fraud. ACL is also applicable in small businesses that
do not house a large amount of data such as small not-for-profits
and charities. Interactive Data Extraction and Analysis (IDEA)
software is better equipped to handle the size and brevity of large
data sets of information.

An audit report produced by the Government Accountability Office
(GAO) noted misuse by the DHS of data mining techniques. They
found DHS shared information from the Immigration and Customs
Enforcement Pattern Analysis as well as the Information Collection
program with state and law enforcement agencies thereby violating
privacy rules (United States Government, Accountability Office).
The GAO investigated the Analysis, Dissemination, Visualization,
Insight, and Semantic Enhancement (ADVISE) data mining
tool to determine if privacy risks and inadequate controls were
present. The ADVISE data mining tool analyzed the relational data
patterns among people, organizations and events, producin