Fraud Detection in Supply Chain Using Excel Sheet

Abstract

Fraud occurs due to intentionally manipulated data in complex and dynamic supply chains cyberspace being a complicated task for detecting or auditing agencies. However, prevention from vulnerable manipulation is the best way to reduce frauds. The application of Excel sheet as decision supporting tools, leads to identify abnormally mismatch or hidden pattern of data, and its depth analysis helps agencies to scientifically examine the feasibility of implementing one ‘trust-but-verify’ method in supply chain network using a probability distribution called Benford’s distribution within a short span of time to detect and prevent fraudulent transactions. This paper demonstrates how to use Excel Sheet to perform Benford distribution statistical test as an effective tool for locating red flags in suspected data from decision-making data-set of supply chain network.

Keywords: Benford Distribution, Excel sheet, Fraud, Supply Chain Management