Auditing and fraud prevention

Improving the revenue stream

Governments continually seek innovative ways to increase revenues in a fair and efficient manner. Effective auditing and fraud prevention programs can help agencies achieve this goal. CGI has successfully helped many public sector clients identify taxpayers that have either not filed or under-reported their income or sales taxes. We also help them protect revenue by identifying and preventing fraud using proven tools and techniques.

Auditing

CGI has implemented successful auditing projects using data warehousing, case management and predictive modeling:  

  • Audit data warehouse—As the foundation of many successful audit departments and programs, the data warehouse contains the internal and external data needed to create, administer and maintain non-filer and under-reporter audit selection programs.
  • Case management—Centralized electronic case inventory tracking systems provide enhanced automated and manual case workflow, audit support tools and correspondence management, all of which are required for successful audit operations. 
  • Predictive modeling—Predictive modeling tools "score" each audit candidate to help identify which cases should be the focus of audit staff and in what priority order.

Fraud prevention

CGI has broad experience in detecting and combating sales tax and income tax refund fraud:

  • Income tax refund fraud prevention—Identity theft and fraud continue to increase as governments struggle to catch the fraud prior to issuing a payment. Identifying fraud early in the cycle is the key to deterrence and prevention. While many agencies use rules and filter-based systems to combat fraud with moderate success, moving to predictive modeling increases the likelihood of early fraud identification. Predictive modeling allows agencies to:
    • Compare and use more data in fraud detection, reducing reduce false positives to increase capacity and decrease cost
    • Model the outcomes of current fraud review, and adapt to evolving patterns
    • Identify trends and patterns much faster than with a rules-based system.

Also see: CGI business intelligence and data warehousing