![]() ![]() The risk assessments discussed earlier need to be tailored specifically to the function under review. For instance, one area may be dealing with cash or payments and another with access controls and authorities. Each area has different elements and risks. You need to break down the organization to at least the business-unit level to be able to focus on a more detailed level. It would be impossible to perform this task on the business organization as a whole. With this knowledge, the next step is to identify weaknesses or areas where potential fraud may exist within the business systems. You cannot apply all the same steps and procedures universally to every business, as business practices in different industries, as well as within the same industries, differ greatly. This knowledge allows you to tailor your evaluation strategies to the organization. This cycle includes evaluating areas of potential fraud and identifying symptoms or red flags for frauds. ![]() A good understanding of the industry in general, along with the business environment, will give you a baseline for comparison purposes. To start the cycle one must understand the whole business well and, specifically, the subsidiary, division, or business unit being reviewed. The stages are evaluation and analysis, software and technology, and the audit and investigation stage. THE DATA ANALYSIS CYCLE is a three-stage cycle that is constantly changing, and which must be adjusted to in order to be effective. ![]()
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