Data analytics technology is already doing great work in fraud detection and prevention within organizations. For example, fraud investigators are able to gather evidence from populations rather than the samples. This makes fraud evidence quality and more reliable than evidence gathered using traditional sampling methods (Dong, et al., 2018).
Given increasing digitization of fraud, complexity and automation, data analytics has a great future in detecting and preventing such sophisticated fraud cases. Data analytics provides the perfect match for the increasingly sophisticated fraud. It provides continuous monitoring of organizational data to identify any anomalies as the data streams. Data analytics also provides platform through which data patterns can be established through which potentially fraudulent trends can be established. Such information gathered is crucial in directing fraud investigations as well as providing basis for making recommendations on how to improve aspects such as internal control structures to prevent future fraud (Baranek & Sanchez, 2018).
However there are challenges of big data as applied in fraud. Such challenges are related to the four dimensions of big data. First, it could be hard for organizations analyze massive data generated every other second. The increasingly diversified data sources make it even harder to sort out which data is appropriate for specific purposes such as fraud. Velocity of the data can as well be high such that organizations may not be able to manage the data so that it helps them on fraud aspects. Finally, on veracity it is possible that the data collected through big data analytics is biased and this is likely to lead to poor decisions being made (McCafferty, 2014).
The original question was:
Now that you have looked at the history of data in accounting, think about the future of data analytics and data management in accounting. Select an area of accounting that interests you (governmental, financial, fraud, etc) and discuss the challenges of big data as they relate to the 4 dimensions of big data discussed in your text. Also discuss how new technology and data analytics can work to overcome the challenges you identified in the area of accounting you selected. Be sure to give specific examples and back up your statements with peer reviewed literature from the library.