The importance of Predication definition
Fraud examiners should not conduct or continue fraud examinations without proper predication definition; Data analytics is instrumental in helping a fraud examiner define predication. Predication definition is the totality of circumstances that would lead a reasonable, professionally trained, and prudent individual to believe a fraud has occurred, is occurring, and/or will occur.
Define predication is the basis upon which a fraud investigation begins. Internal fraud investigations should not be conducted without define predication.
Suppose someone has submitted a tip that gives the fraud examiner reason to believe a particular fraud has occurred. Before accusing someone of wrongdoing, the fraud examiner must perform some preliminary work, such as data analysis, to determine predication definition; however, he must do this carefully to avoid defamation.
To illustrate this predication definition, imagine a bull's eye representing a particular fraud. The fraud examiner must stay on the outside of the bull's eye during the predication check. That means he should avoid conducting any interviews or making accusatory statements and instead use data analytics techniques that do not infringe upon anyone's rights. Because the investigation of fraud deals with the individual rights of others, an investigation must be conducted only with adequate cause or predication definition.
