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

6. Transitioning to Evidence

When you have eliminated the impossible, whatever remains, however improbable, must be the truth.

—Arthur Conan Doyle (Sherlock Holmes)

6.1. Introduction

When examining patterns derived from data mining, the pressing question is what do these patterns indicate? That is, what does the data suggest in relation to the propositions? When presented with information or data, a forensic accountant has to assess whether the information supports, negates, confirms, or disconfirms an assertion or hypothesis of financial impropriety. The forensic accountant’s assessment of information and data is not limited to reporting the features of the data, otherwise known as descriptive statistics, but to demonstrate how the data or ...