A Framework for Web Based Detection of Journal Entries Frauds using Data Mining Algorithm

A Framework for Web Based Detection of Journal Entries Frauds using Data Mining Algorithm

  IJCTT-book-cover
 		 International Journal of Computer Trends and Technology (IJCTT)          
 
© 2017 by IJCTT Journal
Volume-51 Number-1
Year of Publication : 2017
Authors : Awodele O., Akinjobi J., Akinsola J. E. T.
DOI :  10.14445/22312803/IJCTT-V51P101

MLA

Awodele O., Akinjobi J., Akinsola J. E. T. "A Framework for Web Based Detection of Journal Entries Frauds using Data Mining Algorithm". International Journal of Computer Trends and Technology (IJCTT) V51(1):1-9, September 2017. ISSN:2231-2803. www.ijcttjournal.org. Published by Seventh Sense Research Group.

Abstract -
Fraud detection has been a major challenge in the financial industry. The fraud menace has made a lot of organization lost billions of naira especially in multi-divisional and multi-branch enterprises. Hence, there is a need for pragmatic approach to proffer solution to this challenge. The methodological approach used in this work involves the development of framework which includes the remote extraction of financial Journal Entries (JE) from each branch location of multi-divisional multi-branch enterprises and integrated into an SQL Server database using a standard data format through SQL Server Management Studio. The extracted data is thereafter used to build a central data warehouse that is transmitted to the auditors at the corporate headquarters of the enterprise using web applications tools through Internet. A Decision Tree data mining algorithm constructed is applied by the auditors at the corporate headquarters on the data warehouse to detect possible financial JE fraud. The tasks are guided by the concept of a three tier client/server architecture in which the data extraction and data warehouse construction tasks constitute a data/backend tier, the transmission of the data warehouse through the web services constitutes the application/ middle tier while the decision tree data mining algorithm application for fraud detection through a user interface program of Active Server Pages (ASP.NET) constitute a presentation tier. Therefore, supervised predictive machine learning was employed in this study because the classes for fraud detection are user defined, they are ensured to conform to the classification hierarchy of the Journal Entries (JE). The use of training data improves the ability to differentiate between classes with similar journal profiles using the methods that are more reliable and produce more accurate results.

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Keywords
Data Mining, Data Warehouse, Decision Tree, Journal Entries, Machine Learning, Web Services.