Data Visualization and Forensic Accounting

1. Data Visualization and Forensic Accounting Andrew L. Adkins MFAcc 603 Gathering & Analyzing Evidence January 20, 2017 University of Charleston

2. Topics to Be Discussed: • What is data visualization? • History of data visualization • Techniques of data visualization • How should data be visualized? • Data mining • Forensic accounting • Trends • Conclusion

3. How many times does the number 3 appear? 1269548523612356987458245 0124036985702069568312781 2439862012478136982173256

4. How many times does the number 3 appear? 1269548523612356987458245 0124036985702069568312781 2439862012478136982173256 Was it easier this time?

5. What is data visualization? • Taking extraneous sets of data • Filtering for important data • Communicating results of data in effective and efficient way • Multiple sets of data, extremely complex data, data that requires specialized knowledge to understand • Quantitative data can be boring and hard to understand

6. History of Data Visualization • Earliest examples DV geometric diagrams for map-making • Cartography and measurement tools of 16th century • Statistical thinking increase in 17th century • Analytic geometry, theories of errors, probabilities, demographic data collection • 18th and 19th century numbers represented people • Technology of 20th and 21st century

8. Techniques to Data Visualization • Ultimate Goal: allow user to have deeper understanding • Presentation is key • Data can be overwhelming and hard to understand • Static images can be misinterpreted & details overlooked • Computation of data • Display data in comprehensible and clear way • Ability to further understand and question

9. How Should Data be Visualized? • Pre-attentive visual processing • Eyes detect certain visual characters, combine to make single image • Picture Superiority Effect • Retaining information from pictures instead of words • 3 main principles: • Show the data • Select what is relevant, do not have to use ALL the data • Reduce the clutter • Integrate text • “Slideshow Effect”

10. Data Visualization in Data Mining & Forensic Accounting • Gather data via data mining • Basis for Financial Accounting Fraud Detection (FAFD) • Establishing patterns • Decision-making • Static v. Interactive Visualization • Static: pre-determined information and pre-defined way • Interactive: sort own data and sense of control • Confirmation bias • Management v. Accounting v. Auditing

11. Trends in Data Visualization • Positive Trends • Crucial operation in Business Intelligence • Curiosity moved from academia • Analytics benefits • Software continually available • Negative Trends • Knowledge • Misuse or misunderstand true purpose

12. Future of Data Visualization • Update at quicker pace then people can keep up with • Where does DV lack • Methods and sophisticated algorithms • True future…unknown

13. Conclusion • Communicating complex information effectively & efficiently • Started with ancient map making and cartography • Evolved with technology • Various techniques and trends exist today • Simple, precise, and communicate all data • Should aid the presenter, but stand alone • Finding place in Business Intelligence, but others? • Future…unknown

14. QUESTIONS?