Statistical Techniques for Forensic Accounting: Understanding the Theory and Application of Data Analysis

Master powerful statistical techniques for uncovering fraud or misrepresentation in complex financial data. The discipline of statistics has developed sophisticated, well-accepted approaches for identifying financial fraud and demonstrating that it is deliberate. Statistical Techniques for Forensic Accounting is the first comprehensive guide to these tools and techniques. Leading expert Dr. Saurav Dutta explains their mathematical underpinnings, shows how to use them properly, and guides you in communicating your findings to other interested and knowledgeable parties, or assessing others' analyses. Dutta is singularly well-qualified to write this book: he has been engaged as an expert in many of the world's highest-profile financial fraud cases, including Worldcom, Global Crossing, Cendant, and HealthSouth. Here, he covers everything professionals need to know to construct and conduct valid and defensible statistical tests, perform analyses, and interpret others' analyses. Coverage includes: exploratory data analysis to identify the "Fraud Triangle" and other red flags&; data mining tools, usage, and limitations&; statistical terms and methods applicable to forensic accounting&; relevant uncertainty and probability concepts&; Bayesian analysis and networks&; statistical inference, sampling, sample size, estimation, regression, correlation, classification, prediction, and much more. For all forensic accountants, auditors, investigators, and litigators involved with corporate financial reporting; and for all students interested in forensic accounting and related fields.

Dr. Saurav K. Dutta is an Associate Professor at the Department of Accounting, Business Law, and Taxation at the State University of New York at Albany, where he previously served as the Chairman of the Department. He has taught at the Graduate School of Management, Rutgers University, and at Zicklin College of Business, Baruch College, New York. He holds a Bachelor of Technology Degree in Aerospace Engineering from the Indian Institute of Technology (Bombay) and a Ph. D. in Accounting from the University of Kansas.

 

His research interests are in applying statistical and analytic methodology to accounting and auditing problems, and his current work involves analyzing problems in financial reporting, as well as studying the accounting aspects of corporate sustainability initiatives. He has published over 25 research papers in academic journals, including Auditing: A Journal of Practice and Theory; Journal of Accounting, Auditing, and Finance; Journal of Accounting and Public Policy; Issues in Accounting Education; Journal of Cost Management; Journal of Corporate Accounting and Finance; International Journal of Technology Management; The Quality Management Journal; Corporate Social Responsibility and Environmental Management; Strategic Finance; and others. Dr. Dutta has presented his research findings at numerous national and international academic conferences and has conducted research seminars at many universities including, Harvard, Oxford, New York University, Rutgers, University of Southern California, Michigan State, Bentley, and Maastricht. He has conducted professional teaching and training seminars at Dai-Ichi-Kangyo Bank, Merrill Lynch, Prudential Insurance Company, and KPMG LLP. He has been invited by the AICPA to conduct workshops on the use of statistics in forensic accounting, and he has also been the &;Featured Speaker&; for the Corporate Director&;s Group.

 

Dr. Dutta has been engaged to design and analyze statistical tests on numerous accounting/litigation projects under the jurisdiction of the New York State Attorney General&;s Office, U.S. District Court of the Southern District of New York, and the Securities and Exchange Commission, among others. Some of these engagements involved designing statistical procedures to verify claims for settlements of amounts ranging from $500 million to $6.1 billion and include the settlements for MCI-WorldCom, Global Crossing, Cendant Corp, and HealthSouth. He was involved with the reparations of more than 400 million CHF from the Swiss banks, under the purview of the U.S. District Court of Eastern New York. He has also been engaged to evaluate accounting systems related to hedge accounting, fair value accounting, and mergers and acquisition. Since 2006 he has served as the Subject Matter Expert (SME) for the IMA in their preparation and updating of the CMA examination study guide.