Business Process Mining for Internal Fraud Risk Reduction: Results of a Case Study

Abstract

Corporate fraud these days represents a huge cost to our economy. Academic literature merely concentrates on the fight against external fraud, while internal fraud also represents a huge cost to our economy. In this paper we discuss the use of process mining to reduce the risk of internal fraud. Process mining diagnoses processes by mining event logs. This way we can expose opportunities to commit fraud in the process design. We present a methodology as a complement to the internal control framework of the COSO and apply this methodology in a case company.