What is advanced analytics?

Advanced analytics is a data analysis methodology that uses predictive

modeling, machine learning algorithms, deep learning, business process
automation and other statistical methods to analyze business information from a
variety of data sources.

Advanced analytics uses data science beyond traditional business intelligence (BI)
methods to predict patterns and estimate the likelihood of future events. This in turn
can help an organization be more responsive and significantly increase its accuracy in
decision-making.

Why is advanced analytics important?

Advanced analytics is a valuable resource to enterprises because it enables an
organization to get greater functionality from its data assets, regardless of where the
data is stored or what format it's in.

What are the benefits of advanced analytics?

In addition to enabling greater use of data assets and providing decision-makers with
greater confidence in data accuracy, advanced analytics offers the following benefits:

 Accurate forecasting. Using advanced analytics can confirm or refute prediction

and forecast models with a greater level of accuracy than traditional BI tools that
still carry an element of uncertainty.
 Faster decision-making. With predictions that feature a high level of accuracy,
executives can act more quickly, confident their business decisions will achieve
the desired results and that favorable outcomes can be repeated.
 Deeper insight. Advanced analytics offers a deeper level of actionable insight
from data, including customer preference, market trends and key business
processes, which empowers stakeholders to make data-driven decisions that can
directly affect their strategy.
 Improved risk management. The higher level of accuracy provided by advanced
analytics predictions can help businesses reduce their risk of costly mistakes.
 Anticipate problems and opportunities. Advanced analytics uses statistical
models to reveal potential problems on the business' current trajectory, or identify
new opportunities, so stakeholders can quickly change course and achieve better
outcomes.
What are some advanced analytics techniques?
Advanced analytics can help provide organizations with a competitive advantage.
Some commonly used advanced analytics techniques include the following:
 Data mining. This process sorts through large data sets to identify patterns and
establish relationships to solve problems through data analysis.
 Sentiment analysis. This technique uses natural language processing, text
analysis and biometrics to identify the emotional tone behind a body of text.
 Cluster analysis. This process matches pieces of unstructured data based on
similarities found between them.
 Complex event processing. This technique uses technology to predict high-level
events likely to result from specific sets of low-level factors.
 Big data analytics. This is the process of examining large volumes of structured,
semi-structured and unstructured data to uncover information such as hidden
patterns, correlations, market trends and customer preferences.
 Machine learning. The development of machine learning has dramatically
increased the speed at which data can be processed and analyzed, facilitating
disciplines like predictive analytics.
 Data visualization. This process of presenting data in graphical format makes
data analysis and sharing more accessible across organizations.

What is Correlation Analysis?

Correlation analysis in market research is a statistical method that identifies the

strength of a relationship between two or more variables. In a nutshell, the process
reveals patterns within a dataset’s many variables.

It's all about identifying relationships between variables–specifically in research.

Using one of the several formulas, the end result will be a numerical output between -
1 and +1.

Let’s say you are interested in the relationship between two variables, Variable
A and Variable B.

 Results close to +1 indicate a positive correlation, meaning as Variable A

increases, Variable B also increases.
 Outputs closer to -1 are a sign of a negative correlation, these results mean
that as Variable A increases, Variable B decreases.

A value near 0 in a correlation analysis indicates a less meaningful relationship

between Variable A and Variable B.

While you are technically testing two variables at a time, you can look at as many
variables as you would like in a grid output with the same variables listed as both
columns and rows.
How to Measure Correlation

You must first conduct an online survey to analyze the correlation between two
variables. The process includes writing, programming, and fielding a survey. The
results are later used to determine strength scores.

You are likely to find a useful application for them in customer satisfaction
surveys, employee surveys, customer experience (CX) programs, or market surveys.

These surveys typically include many questions that make ideal variables in a
correlation analysis.

Below is the process our online survey agency follows to measure correlation.

Step 1. Write the survey

The first step in running a correlation analysis in market research is designing the
survey. You will need to plan ahead with questions in mind for the analysis.

This includes anything that yields data that is both numerical and ordinal.

Think of metrics such as:

 Agreement scales
 Importance scales
 Satisfaction scales
 Money
 Temperature
 Age

Step 2. Program + field the survey

Once the survey is finalized, you will need to program and test it to ensure the
questions are functioning correctly.

This is important because mislabeled scales or improper data validation in the

programming will taint the data used for correlation analysis.

Use our online survey testing checklist for what to look for because launching the
questionnaire into fieldwork.

Once everything checks out, it's time to administer the fieldwork of the survey.

Step 3. Analyze the correlation between 2 variables

Next, clean the survey data after the target number of responses is reached. This
protects the integrity of the data for analysis.

The two most common ways to run a correlation include:

1. The Pearson r correlation is best used when the relationship between

variables is linear, quantitative, and has no outliers.
2. The Spearman rank correlation is best used when you want to see when one
ranked variable increases if the other ranked variable increases or decreases.

Though, most data analysis software features a tool to run a correlation analysis after
you enter the inputs automatically.

What Is Trend Analysis?

Trend analysis is a technique used in technical analysis that attempts to predict future
stock price movements based on recently observed trend data. Trend analysis uses
historical data, such as price movements and trade volume, to forecast the long-term
direction of market sentiment.

Types of Trends to Analyze

There are three main types of market trend for analysts to consider:

. Upward trend: An upward trend, also known as a bull market, is a sustained

period of rising prices in a particular security or market. Upward trends are
generally seen as a sign of economic strength and can be driven by factors
such as strong demand, rising profits, and favorable economic conditions.
. Downward trend: A downward trend, also known as a bear market, is a
sustained period of falling prices in a particular security or market.
Downward trends are generally seen as a sign of economic weakness and can
be driven by factors such as weak demand, declining profits, and unfavorable
economic conditions.
. Sideways trend: A sideways trend, also known as a rangebound market, is a
period of relatively stable prices in a particular security or market. Sideways
trends can be characterized by a lack of clear direction, with prices
fluctuating within a relatively narrow range.

How to Perform a Trend Analysis

In order to begin analyzing applicable data, it is necessary to first determine which

market segment will be analyzed. For instance, you could focus on a particular
industry, such as the automotive or pharmaceuticals sector, as well as a particular
type of investment

Advantages and Disadvantages of Trend Analysis

Advantages

Trend analysis can offer several advantages for investors and traders. It is a powerful
tool for investors and traders as it can help identify opportunities for buying or
selling securities, minimize risk, improve decision-making, and enhance portfolio
performance.

Disadvantages

Trend analysis can have some potential disadvantages as a tool for making
investment decisions. One of these disadvantages is that the accuracy of the analysis
depends on the quality of the data being used. If the data is incomplete, inaccurate, or
otherwise flawed, the analysis may be misleading or inaccurate.

GEL-1 AND GEL-2

The purpose of the GEL tests (GEL-1 and GEL-2) is to detect the relationship or link
within the data file as potential indicators of fraud.

The GEL tests establish the link between two selected fields with the first field being
the key field and the second field being the element factor over the entire data set.

GEL is short for the gestalt element link. Gestalt is defined by the online Merriam-
Webster dictionary as: a structure, configuration, or pattern of physical, biological, or
psychological phenomena so integrated as to constitute a functional unit with
properties not derivable by summation of its parts. 1

An example for using GEL tests is to detect bribery or improper relationships. Since
most entities do not have access to the records of the payer company, their own data
can be analyzed to detect improper relationship patterns.

The following GEL-1 example depicts testing of potential links between the sales
representatives and their customers. A high GEL factor may be an indicator of an
improper relationship or merely that certain sales representatives are assigned certain
customers. A good understanding of the business practices and procedures is
necessary to properly interpret the results.

GEL-1

The example uses the "Sales Transactions" database that contains the fields
SALESREP (sales representative) and CLIENT_NO (client or customer number). We
want to know the number of transactions each sales representative had with each
client expressed as a ratio. The higher the GEL-1 ratio, the more transactions were
done with the particular client that may indicate a special relationship.
Step 1. Summarize by SALESREP and then CLIENT_NO and name the new file
"Summarization G1-1." Note that the file name contains the step identification to keep
tracking simpler as shown in Figure 6.11. This step creates a file that shows how
many records or transactions there are for each sales representative by client.

Step 2. Append a field named REC_NO using the @Recno( ) function shown in
Figure 6.12. Associating the record number is necessary to properly join the ifile
together later.

Step 3. Obtain the highest number of records or transactions by sales representative.

Use the Top Records Extraction feature to obtain the top-most record for NO_OF_
RECS grouped by SALESREP as in Figure 6.13. Name the file "Top Records G1-3.

FIGURE 6.12 Create a Record Number Field

FIGURE 6.13 Obtain the Highest Number of Transactions for Each Sales
Representative
FIGURE 6.14 Create a File That Excludes the Top-Most Transactions for Sales
Representatives

Step 4. Join the "Summarization G1-1" database with the "Top Records G1-3"
database as the primary and secondary database respectively, as in Figure 6.14. The
Match Key Fields are REC_NO for both the primary and secondary files. Use the
match option of "Records with no secondary match." Name the file "Join G1-4." The
result is those records that are not top transactions.

Step 5. Summarize the "Join G1-4" ifile by SALESREP using NO_OF_RECS as the
numeric field to total as shown in Figure 6.15. This obtains the total number of
records or transactions by SALESREP, excluding the top transactions. Name the file
"Summarization G1-5."

Step 6. Summarize original database of "Sales Transactions" by SALESREP to obtain

total number of transactions for each sales representative as displayed in Figure 6.16.
Name this file "Summarization G1-6."

Step 7. Join as primary database, "Summarization G1-5" with the "Top Records G1-
3" database. Join using the "Matches only" option and the Match Key Fields as
SALESREP, as shown in Figure 6.17. We do not need all the fields from both the
primary and secondary files. In fact, retaining all the fields would create confusion.
By selecting
FIGURE 6.15 Obtain the Total Number of Transactions by Sales
Representatives Excluding the Top-Most Transactions

FIGURE 6.16 Obtain the Total Number of Transactions for Each Sales
Representative from the Original Sales File

the Fields button for the primary file, choose the SALESREP field. Fields to include
from the secondary file are NO_OF_RECS and CLIENT_NO. This results in a file
that has the top transactions for each client. Name this file "Join G1-7."
FIGURE 6.17 Create a File with the Top Transactions for Each Client

Step 8. Rename the field NO_OF_RECS to TRAN_PER_FREQ_CLIENT_NO to

display the number of transactions with the sales representatives' most frequent
clients. Refer to Figure 6.18.

FIGURE 6.18 Identify the Number of Client Transactions by Renaming the

Number of Records Field

Step 9. Make "Join G1-7" as the primary database and join it with "Summarization
G1-6" as the secondary file using the "Matches only" option shown in Figure 6.19.
The Match Key Fields is SALESREP. Include from the primary database all fields
and only the NO_OF_RECS field from the secondary file. Name the file "Join G1-9."
The resulting file will have total transactions and top-items transactions.
FIGURE 6.19 Put All the Transactions Together

Step 10. Rename the NO_OF_RECS field to TOTAL_FOR_SALESREP as in Figure

6.20.

FIGURE 6.20 Rename the Number of Records Field to Identify the Total
Transactions for Each Sales Representative

Step 11. There is one final step to obtain the ratio that we are looking for. Append or
create a field called GEL_1 with four decimal places, using the equation of TRAN_
PER_FREO_CUSTOMER_NO/TOTAL_FOR_SALESREP as shown in Figure 6.21.
FIGURE 6.21 Create the GEL-1 Field and Perform the Calculation

The final file is shown in Figure 6.22 with the GEL_1 ratio indexed by descending
order to display the highest to the lowest. A high GEL_1 ratio shows an overview of
the link between the sales representative and clients.

FIGURE 6.22 Resulting File with the GEL-1 Ratio Indexed by Descending
Order

The auditor may decide to further review transactions and relationships for those with
a GEL_1 ratio of 0.6000 or more.

For instance, SALESREP 105 falls into this criterion with a GEL_1 factor of 0.7500.
He had a total of 160 transactions but 120 of them were with CLIENT_NO 30608. In
other words, 75 percent of SALESREP 105 transactions or sales were with one
customer. He only had 40 transactions with other customers. Further analysis is
needed.

Cash Larceny vs. Skimming

Cash larceny and skimming are both common types of fraud that are perpetrated by
the company’s employees. They differ in the time of occurrence. While cash larceny
involves the theft of cash that has been recorded on the employer’s books, skimming
refers to the theft of money that has not been captured on the employer’s books of
accounts or accounting system.
Larceny is often easier to detect than skimming because the stolen funds have already
been captured in the accounting system and, therefore, leave an audit trail that can be
discovered during reconciliations and cash audits.

Types of Cash Larceny

There are various types of cash larceny that employees use to steal cash from an
employer. They include:

1. Stealing cash from the register

A high percentage of employee cash theft occurs at the cash register (or alternative
cash collection points like cash drawers) because that is where the cash and receipts
are stored. When money is being passed back and forth, the employee may pick some
cash and slip it into his pockets when no one is watching.

The employee may also wait for an opportunity when there is less activity at the cash
register to open the till and dig in to remove some notes. However, since the
employee steals cash that has already been recorded at the register log, an imbalance
between the cash recorded and the cash stored indicates possible cases of fraud.

2. Reversing cash transactions

After stealing money from the employer, some employees may reverse certain
transactions as a way of hiding the cash larceny. They achieve this by recording
fraudulent returns and false voids as a way of decreasing the amount of cash balance
that is reflected in the register log.

For example, after stealing the cash received by a customer as a payment for a product
purchase, the employee may destroy the receipts that reflected the transaction. To hide
the larceny, the employee may go back to the cash register and void the transaction
that has been entered at the time of purchase. Reversing the transaction serves as a
way of decreasing the balance shown on the register log so that it equals the cash on
hand.

3. Altering cash counts

Employees may get an opportunity to alter the cash count if they are in charge of
recording the cash payments and reconciling the cash on hand and the cash captured
on the cash register log. It gives them an opportunity to reconcile the cash register to a
figure that conceals their theft footprints, allowing them to steal without getting
noticed.

Ideally, an employee that deals with the cash register should not be the same person
charged with verifying the cash on hand and the amount captured on the register log,
since this creates a loophole for stealing money.

4. Writing personal checks to cover theft

This type of cash theft involves covering the cash balance with a personal check as a
way of reconciling the cash difference. This practice aims at concealing the cash
shortage when reconciling the cash register with the cash on hand. However, the
employee faces the risk of the check being unmasked when an auditor is reviewing
the cash trail. Also, when the check is cashed, it will counteract the cash they had
taken, or bounce and alert the employer of the scheme that the employee is involved
in.

5. Destroying cash register logs

If employees are unable to balance the cash recorded on the cash register and the cash
received, they may resort to destroying register logs to avoid being implicated in a
crime. Destroying the logs would prevent the employer or auditors from reviewing the
logs to identify any discrepancies with the cash received.

Prevention of Cash Larceny

Below are some of the steps that employers can take to prevent cash larceny:

1. Separation of duties

Employers should have a clear organizational structure that separates the duties
assigned to employees. Ideally, each employee should not be given control over an
entire accounting transaction, since this increases the risk of fraud. For example, when
one employee is in charge of recording cash payments, depositing the cash, and
reconciliations, it presents an easy opportunity to benefit fraudulently. Some of the
duties that should be separated include cash receipts, cash disbursements, bank
reconciliations, cash counts, posting of deposits, etc.

2. Assignment rotation and mandatory holidays

When an employee performs certain functions continuously, they may get too
comfortable and start finding ways of manipulating the system to their advantage.
This mainly applies to employees who are involved in receiving cash payments,
recording payments, payment authorizations, and cash reconciliations. The employer
should have a system in place that rotates assignments carried out by specific
employees, to reduce incidences of fraud.

The employer should also impose a mandatory holiday for employees so that they can
review their performance to determine if they are involved in any form of cash
manipulation or financial fraud. When the employee is absent, the employer may
assign another employee to carry out that function to ensure the continuity of the
business operations.

3. Surprise cash counts and procedure supervision

Another way of preventing cash larceny is to conduct surprise cash counts to detect
any incidences of fraud. Surprise cash counts help instill discipline among employees,
since they will be afraid that the employer will unmask their schemes. The cash
counts should target all the cash handling processes, from receipts to bank deposits.
Also, employees involved in these critical roles should be directly supervised, and the
supervisor must approve any refunds or voids.

BILLING SCHEMES ARE PERPETRATED on the business through the accounts

payable department. Businesses incur liabilities through the normal course of business
that must be settled within a certain time period. Almost all expenditures made by the
company are processed by accounts payable. The majority of the payments would be
for trade payable and expense payable accounts. Trade payables are for the purchases
of goods that are normally recorded as inventory and as part of the cost of goods sold.
Expenses payable are those spent for purchases of goods or services that are normally
expensed. Travel and entertainment expenses are also typically handled by accounts
payable.

Payments flow through the system in the same manner, whether they are legitimate or
fraudulent. Since so many transactions go through accounts payable and are the
largest outlay for most organizations, you need to be vigilant to detect bogus
payments. Not only is fraud of concern, but errors and inefficient payment processing
are also issues, and all are costly to organizations just the same. Errors may be
duplicate payments made or unnecessary charges paid for. Inefficient processing may
include unnecessary payments for late payment interest or fees, discounts for earlier
payment not taken, or individual payments of multiple invoices to the same provider
during the same period.

There are a number of ways to run a billing scheme. The costliest to the organization
are those where the corrupt

Thematic Analysis

Thematic Analysis is a flexible data analysis plan that qualitative researchers use to
generate themes from interview data. This approach is flexible in that there is no
specific research design associated with thematic analysis; it can be utilized for case
studies, phenomenology, generic qualitative, and narrative inquiry to name a few.
This data analysis plan is perfect for both novice and expert qualitative researchers
because the steps are easy to follow but rigorous enough to generate meaningful
findings from the data.

Thematic Analysis is a flexible data analysis plan that qualitative researchers use to
generate themes from interview data. This approach is flexible in that there is no
specific research design associated with thematic analysis; it can be utilized for case
studies, phenomenology, generic qualitative, and narrative inquiry to name a few.
This data analysis plan is perfect for both novice and expert qualitative researchers
because the steps are easy to follow but rigorous enough to generate meaningful
findings from the data.