CFE – Investigation — Question 74

Management at Oak Company has asked Arthur, an internal auditor, to implement a data analysis program to search for warning signs of potential fraud within the company. Which of the following steps should Arthur conduct first to MOST EFFECTIVELY use data analysis techniques for such an initiative?

Answer options

• A. Cleanse and normalize the data.
• B. Build a profile of potential frauds.
• C. Obtain the data.
• D. Analyze the data.

Correct answer: C

Explanation

The first step in using data analysis techniques effectively is to obtain the data, as it is essential to have access to relevant information before any analysis can be performed. Cleaning and normalizing the data, building a profile of potential frauds, and analyzing the data are important steps that follow but cannot be executed without first acquiring the necessary data.