Fraud and non-compliance cause significant losses to organisations each year. In fact, data shows that organisations lose %5 of revenue to fraud each year. This number stands at an estimated loss of $4.7 trillion on a global scale.

Auditors need cutting-edge technology solutions to navigate a rapidly evolving risk and fraud landscape. In fact, companies globally are investing billions in audit technology and quality management systems to strengthen audit quality and prevent fraud. 

The auditor's role in identifying and preventing audit fraud is extending beyond providing reasonable assurance as businesses become data rich. This uniquely positions auditors to identify unusual transactions and patterns that might indicate fraud. 

Strategies to Detect and Prevent Fraud

1. Digital Audit Tools to Reduce Manual Process Errors

Falsified documents are the weak link impacting auditors' capacity to conduct quality audits. Digital audit tools that help auditors ensure document authenticity and automate manual processes are key to strengthening audit quality. 

These tools tighten processes, such as audit confirmations, that stand open to exploitation. They further accelerate audit velocity and help identify and prevent fraud.. 

Technology solutions like Thomson Reuters Confirmation ensure information authenticity, upgrade ineffective and dated confirmation processes, and improve investor confidence in audit statements. 

Confirmation eliminates manual and error-prone methods, streamlines processes, and decreases audit confirmation time from weeks to days. Auditors also enjoy accelerated workflows and globally validated networks for information integrity, reducing the window of exposure that fraudsters usually exploit. 

2. Automation Reduces Document-Handling Processes

Automated APIs deliver significant value to auditors in document handling processes, keep audits on track, and reduce workload creep during peak reporting seasons. They help free up auditors' time and allow them to spend more time providing high value, strategic advisory services to clients.  

Automation APIs, such as Confirmation APIs, reduce auditor load, provide greater data visibility, complete faster and more accurate audits, and simplify tasks of client authorisation, confirmation initiation, and reconciling charges. 

APIs synchronise client signers and reduce manual work while ensuring that critical documentation goes to the right place. 

3. AI Systems Are Helping Firms Detect Fraud

It is becoming increasingly challenging for auditors to identify anomalies and audit risks as the volume and complexity of business data grows. Favourably, AI systems can now assist audit and compliance by upgrading time-consuming and manual document-centric systems and processes. 

AI systems can process large volumes of data and detect anomalies, suspicious behaviour, and data inconsistencies faster, thereby increasing time savings, ensuring compliance, and helping auditors mitigate risks and fraud faster. 

As the fraud landscape becomes more sophisticated, audit firms need systems and processes that can proactively detect and prevent fraudulent occurrences. Technology applications are now critical for upgrading audit processes, helping auditors recognise suspicious transactions, identifying fraudulent documentation, and improving audit quality to drive investor and stakeholder confidence.