Also, computer-based data analysis tools can prove invaluable when addressing suspected fraud situations. The techniques and types of data interrogations in modern audit software are almost unlimited. For example, audit software has many commands that support the auditor's requirement to review transactions for fraud such as the existence of duplicate transactions, missing transactions, and anomalies. Audit software can be used to interrogate a company's data files and identify data patterns associated with fraud. Systems can even be built to monitor transactions on an ongoing basis.
Continuous monitoring is a proactive approach to the early detection of fraud.
Computerized techniques and interactive software can help auditors focus their efforts on the areas of greatest risk. Auditors can choose to exclude low risk transactions from their review and to focus on those transactions that contain a higher probability of fraud. Audit software also provides auditors with the ability to extract information from several files, with different database management systems, in order to search for underlying patterns or relationships among data. For example, reviewing data from the accounts payable and the contracting databases may reveal a concentration of contracts with one vendor all initiated by the same contracting officer, leading to concerns about possible kickbacks. Auditors can form an initial hypothesis, test that hypothesis, and revise it as necessary based on the results of interactive analyses.