by Noah Green CPA CFE | Mar 21, 2026 | DD Tech Lab
An ownership chain that nests beyond three levels is the point at which the DD analyst’s tooling has to change. A natural person owns 51 percent of Entity A; Entity A owns 80 percent of Entity B; Entity B reaches a 40 percent indirect interest in Entity C...
by Noah Green CPA CFE | Mar 19, 2026 | DD Tech Lab
The first-order Markov apparatus from First-Order Markov Modeling for Transaction-Stream Analysis in Audit worked cleanly on a 5-state synthetic dataset with 1,000 transitions and a known baseline. Production audit work breaks each of those assumptions. The chart of...
by Noah Green CPA CFE | Mar 16, 2026 | DD Tech Lab
Duplicate disbursements erode 0.8 to 1.1% of organizational spending annually (ACFE, Report to the Nations, 2024 ed., p. 47). Excel’s COUNTIFS function detects these control failures through systematic pairwise comparison: records matching on vendor and invoice...
by Noah Green CPA CFE | Mar 12, 2026 | DD Tech Lab
Financial-statement auditors and DD analysts work with sequences: journal-entry posting streams, period-over-period account-reconciliation states, customer-vendor transaction chains, adjusting-entry timing through close. The standard analytical toolkit, descriptive...
by Noah Green CPA CFE | Mar 9, 2026 | DD Tech Lab
The first-digit distribution of naturally occurring numerical populations follows a logarithmic pattern. Auditors leverage this pattern to screen transaction datasets for anomalies. The implementation requires precise Excel formulas, statistical validation, and...
