Why Fraud Left Undiscovered?

·         Limited time

–      Our most precious resource is our attention

·         History

–      Heavy use of sampling - lack of detail

–      Lack of historical fraud detection instruction

·         Lack of fraud symptom expertise

·         Lack of fraud-specific tools

·         Lack of analysis skills

·         Lack of expertise in technology

·         Auditors do find 20-30 percent of fraud

from  ACFE 2004 Report to the Nation