The number of accounting scandals is amazing. Most result in re-stating the accounts and some in major scandals. The issue of regulatory oversight is frequently in the press. However, even with enforcement increasing and getting penalties higher, a new accounting issue is never far behind. It continues to get worse. Just look at the impact on […]
On June 16th, after months of talking to awesome clients like yourself, we are happy to announce that we will soon be offering an in-app support (complete with in-app chat) feature to get you all the help you need to use the MindBridge Ai-Auditor effectively! Soon, you’ll log in to your accounts, and you will […]
It’s important to note that an unusual transaction depends on the context. An unusual transaction for one company might be completely normal for another company. The internal audit team has a better sense of what’s normal in an organization. In our fraud case, study the CFO reversed Cost of Goods sold. It was flagged as highly unusual. […]
We believe in the analysis of 100% of transactions to detect anomalies and not in the sampling of data. We also believe that sensible business rules based controls can help, to comply with existing audit recommendations. Vitally important is that these methods are combined with advanced analytics and data science. You don’t want to choose one […]
The MindBridge data scientist team consulted extensively with auditors to determined the default control points values. Remember, marking them all as 100% is like you saying everything is important to you. Not really conducive to finding what you don’t like. These values provided a reasonable risk profile. We recommend that you start out with the […]
What is the difference between the “Reversal” and “Reversed” control points? How do they work differently from each other?
The reversal control point flags transactions which are reversals of a previous transaction in the ledger. The reversed control point flags transactions which are reversed by a subsequent transaction in the ledger. The algorithm kind of finds both at once and then pairs them together. The earlier one is “reversed” and the later one is “reversal”. […]
Machine learning compares the data set by looking at Row 1 and its columns vs Row 2 and its column data. Then, Row 3, etc. The MindBridge Ai-Auditor ingests 100% of the file. It then analyzes 100% of the file with 100% of the rest of the file. This is hard to explain as this is […]
Due to the unique and creative ways employees “game” the system with purchasing cards and expense reimbursements, machine learning is also useful in identifying previously unknown schemes in these areas. These activities can create unusual combinations of debt and/or credit. Case experience has shown machine learning to be effective in identifying purchasing behavior such as frequent […]
Machine-based learning anomaly detection Machine learning is a useful type of artificial intelligence. Machine-based learning anomaly detection looks at all the numbers. It is able to learn without predefined decision rules. Machine learning constructs its own decision tree based on meta-tagged data, e.g., “red flag” or “not,” to decide how “red flag” transactions are related. […]
You can bulk create tasks for those reports, export and print them in the MindBridge Ai Auditor. You can also create reports by going to Transaction Table, Filter on what you want, then go to Bulk > Export, and voila!
MindBridge Ai-Auditor Local Yes. The MindBridge Ai-Auditor local on site installation is possible. The setup is a little involves, so your IT would work closely with experts at MindBridge AI. The minimum requirements to deploy the MindBridge Ai-Auditor in your environment are: 6 vCPU, 24 GB RAM 3 disks OS – 16 GB ○ Data […]
Are there any specific accounting packages that MindBridge Ai-Auditor cannot recognize the data set?
Technically, No. We’re able to ingest exports from most accounting software programs into the MindBridge Ai-Auditor and use it in our financial risk assessment services. However, some data massaging might be needed to have them conform to some requirements. Memo Account Number Account Description Posted Transaction ID Debit Credit If anything fails during upload, we’ll […]
Rules in the machine based learning anomaly detection in the MindBridge AI Auditor “if yes, then this”. They are specifically geared to check a use-case. If something falls outside of the scope because the rule was not geared to catch it, it’ll go unnoticed. Think of it this way, if I told you to only pay […]
Anomaly Detection Traditional analytics rely on rule-based methods for anomaly detection. These decision rules follow simple Boolean logic: if a vendor address matches an employee address and its wire transfer account matches the employee bank account, then it is likely a fictitious vendor. Machine learning is a useful type of AI that is able to learn without […]
What does machine learning mean in the context of MindBridge AI-Auditor? Can you tell me what specifically MindBridge AI-Auditor does?
The MindBridge Ai-Auditor machine learning translates every incoming GL into a language the machine understands (the 5 account mapping feature). Because of this translation, the machine is able to understand the monetary flows within a GL and identify unusual transactions. Traditional CAAT tools don’t do that, they simply scan numbers in isolated (for example show me […]
Existing practices in financial anomaly detection typically use rules-based systems to find breaches of control. An example of such a rule is a transaction amount limit. Using rules-based systems is the backbone of today’s auditing methods. However, often this approach fails to find material financial misstatements and fraud. Clever fraudsters understand these rules and get […]
Yes. CAS 240 is the Canadian Audit Standard that deals with the risk of management override of control. This standard needs to be met in all financial audits regardless if the auditor’s risk assessment gives concern for such an override or not. This risk is unpredictable and requires special audit considerations. The main approach suggested in […]
It is often the case that it is not a single transaction that indicates an anomaly but a group of transactions such as a recurring monthly event. As such, normal outlier detection does not work as it is often a set of transactions that individually may seem to be normal or acceptable practices but collectively […]
A prudent safeguard is always to consult experts. The MindBridge expert system — MindBridge Ai-Auditor — has been built in collaboration with audit professionals and engaged multiple experts in the field to augment its ability to find unusual and incorrect financial patterns. Generating a risk score that combines the “expert analysis” with transaction flow analysis, […]
Below is a comparison of MindBridge versus traditional audit analytics tools. Criteria Traditional Audit Analytics Tools MindBridge Winner Coverage of testing 100% of known areas of interest 100% of known and unknown cases MindBridge Proven usage Trusted, but outdated technology Breakthrough technology, with growing evidence of its effectiveness Tie (MindBridge positioned to surpass) Knowledge curve […]