CENTRAL AUDIT ACTIVITIES AS A CONTINUOUS AUDIT APPROACH IN THE TURKISH BANKING SECTOR: A CASE STUDY ABOUT FRAUDS IN SAVINGS ACCOUNTS

Abstract

Developments in information technology constitute the core of a fundamental transformation of internal audit approaches. The traditional concept of internal audit on periodic and traditional auditing with the inclusion of concepts such as data mining, artificial intelligence, and machine learning is replaced by modern continuous, risk-focused auditing. Recently, in sectors that have high transaction volume such as banking, continuous audit activities combined with data mining applications have become prominent in effectively managing fraud risk. In this study, an example of the examination process related to savings account fraud in Turkey has been presented by providing basic information about the central audit activities applied as a continuous audit approach in the banking sector. The banking transactions used as data in this fraud auditing were generated realistically and at random. Data mining techniques have been applied to these transactions to detect fraud risks.