Duplicate-Payment Analysis
Definition
A data analytics test that identifies invoice payments made more than once for the same obligation, by matching on vendor, invoice number, amount, and date fields in various combinations. Duplicates may indicate fraud, error, or a control failure that enables either.
- Type
- Data analytics test in fraud examination
- Matched on
- Vendor, invoice number, amount, date
- Possible causes
- Fraud, processing error, control failure
Common questions
How does duplicate-payment analysis differ from general duplicate detection in an audit?+
Duplicate-payment analysis focuses specifically on payments already disbursed, using several field-matching combinations to catch near-duplicates such as slightly altered invoice numbers, whereas broader duplicate detection can also cover unpaid records like open invoices or purchase orders.
Why might duplicate-payment analysis be used as fraud evidence rather than just an accounting cleanup tool?+
A pattern of duplicate payments concentrated with one vendor or one approver, rather than randomly distributed, can indicate deliberate manipulation of the payment system, which shifts the finding from a bookkeeping error into evidence supporting a fraud investigation.
Related terms
- Benford's Law
- An empirical regularity in naturally occurring numerical datasets: the leading digit follows a logarithmic distribution, with 1 appearing about 30% of the...
- Pass-Through Scheme
- A billing scheme in which a legitimate supplier is used as a conduit. The fraudster, who controls or colludes with the supplier,...
- Shell Company
- A legal entity with no genuine business operations, created to receive fraudulent payments. In vendor fraud, the fraudster controls the shell and...
- Three-Way Match
- An accounts-payable control that requires a supplier invoice to match an authorised purchase order and a goods receipt note before payment is...
- Vendor Master File
- The master record of approved suppliers in the accounts-payable system, containing each vendor's name, address, tax identification, and payment bank account. Unauthorised...