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©2017

DATA ANALYTICS TOOLS, METHODS, AND REAL RESULTS

EFFECTIVELY COMMUNICATING COMPLEX DATA

When investigations leverage data analytics, which many do, figuring out how to communicate

those results is a challenge for many examiners, both experienced and novice. With the various

audiences that have need the results, it is important the communication be delivered effectively.

Through the use of examples and guides, this session equips attendees with the skills they need

for effective data communication.

JEREMY CLOPTON, CFE, CPA, ACDA

Director

BKD, LLP

As a member of BKD Forensics & Valuation Services division, Jeremy Clopton leads the

Big Data & Analytics and Digital Forensics practices. He specializes in data analytics with

applications in fraud prevention and detection, risk assessment and business intelligence.

Clopton has experience using ACL, IDEA and Tableau software for analysis, data visualization,

visual analytics and dashboard development. Working with both IT and finance/accounting, he

frequently assists with data gathering and extraction from accounting systems.

His project experience includes development and implementation of continuous auditing

programs for Fortune 500 companies, development of analytics for compliance with anti-bribery

and corruption regulations and investigative experience working with criminal justice

organizations. Clopton’s industry experience includes all major industries.

Clopton is a frequent speaker on the topics of data analytics, continuous auditing, data

visualization and the value data can bring to an organization. He has spoken at global and

national conferences, as well as regional and local conferences and webinars. He also contributes

to the Association of Certified Fraud Examiners’ Fraud Magazine and a variety of blogs on the

topic of data analytics. Clopton is an ACFE Faculty member, leading courses on data analytics

for fraud detection.

“Association of Certified Fraud Examiners,” “Certified Fraud Examiner,” “CFE,” “ACFE,” and

the ACFE Logo are trademarks owned by the Association of Certified Fraud Examiners, Inc. The

contents of this paper may not be transmitted, republished, modified, reproduced, distributed,

copied, or sold without the prior consent of the author.


28th Annual ACFE Global Fraud Conference ©2017 1

NOTES Introduction

Data is everywhere. Whether reading the news, analyzing

stocks or playing fantasy sports. Virtually everywhere you

look you are bound to see a large volume of data. Some is

easily understood, much of it is not. The difference is not

the data. The difference is in the presentation.

The same challenge exists in the realm of fraud examiners.

Organizations are experiencing an enormous growth in data

volumes, which is increasing the complexity of

examinations. As such, examiners face greater challenges

in communicating the results of their analyses. To be

successful in their roles, it is critical for examiners to

understand how to effectively communicate with data—

both simple and complex.

Changing the Nature of Investigations

Over the past decade or two, the prevalence of data in

investigations has increased dramatically. Gone are the

days of reviewing documents and conducting interviews

without looking at the data in organization’s systems.

Investigations are increasingly incorporating digital

forensics, data analytics, and a variety of data sources. With

that comes a need to be able to effectively communicate the

results of the increasingly complex analyses of this data.

This might mean internal communications, external

communications, presentations to law enforcement, and

educating juries.

Growth in Data

Every day the volume of data in organizations increases.

Couple that with the fact that organizations already have

more data than they have ever had before, and the

overwhelmed feeling they are already experiencing, and the

importance of learning how to effectively use the data

becomes even more apparent. There is a large number of



NOTES texts and resources available for review regarding analysis

of data. The remainder of this paper focuses on what to do

once you have analyzed the data.

At the end of the day, everyone who is analyzing and using

data needs to be able to effectively communicate the results

of their, often complex, analyses. Whether it is for internal

use to increase fraud risk mitigation efforts or a

presentation to law enforcement to begin prosecution

proceedings, there are design elements and communication

principles that are present.

Key Design Elements

Though the principles of data communication are

important, the elements of the communication are even

more important. (Note: Throughout this paper, I will refer

to visuals, graphs, charts, and other displays of data

collectively as data communications or communications.)

Commercially available tools for creating data

communications are quite common and have varied levels

of complexity. One thing common across the board is the

presence of templates. These templates are designed as a

starting point to help demonstrate what is available and

“see” how the communication method will look using

actual data. However, many individuals use templates as

the final product and do not take the time to customize

them to fit the needs of their communication. In fact, many

elements of a communication need to be considered and

tailored as appropriate before it is finalized.

Element 1: Message

The single most important element of any data

communication is not the data itself; rather, it is the

message. What are you trying to communicate to the

user of the communication? Consider the following

examples:



NOTES

Both of these communications display the same

underlying data, but they communicate different

messages. The first indicates increased cumulative

spending over time, while the second communicates a

drop in spending in Q4 2013. If this were applied to

cash receipts over the same period, the first chart would

raise no significant questions, while the second would

cause the user to focus questions around anomalous

activity in Q4 2013.

This example illustrates a somewhat contentious issue

related to data that Manoush Zamarodi, host of NPR’s

Note to Self podcast, summarized quite nicely: “The

data is neutral. It’s the people using it that have the

agenda.” Unless it is outright changed, the data is the



NOTES data. The presentation of the data conveys the agenda of

the author of the communication, or stated another way,

their message.

Element 2: Simplicity

This is one of the more overlooked elements of design,

thanks, in large part, to the templates discussed

previously. There are templates that offer legends, axes,

titles, descriptions, and a full data table. While it is

enticing to think about how much more can be added to

a communication to display the awesomeness of an

analysis, this mentality results in a large amount of

what is commonly referred to as chart junk. The next

time you are designing a communication, consider

asking yourself what else can be removed instead of

what more can be added. One of your guiding questions

throughout the design process should be, “Is it

necessary?” This guiding question will help streamline

your communications and eliminate the extras that run

the risk of creating more questions than adding clarity.

Element 3: Accessories

With design element number two being simplicity, it is

probably easy to see where the discussion of

accessories will lead. The intent is not to belabor the

simplicity element. With regard to accessories, we go

back to our guiding question of “Is it necessary?” and

apply that to the selection of accessories. There are

times when the necessary accessories do not exist in a

template or a chart option, but are elements added

through more creative means to provide context or

clarity. An example of a chart with the right balance of

traditional chart accessories and those from outside the

norm is below.



NOTES

Rather than using a legend or data table, the elements of

the communication are evident to the user, as is the

message. While text is many times not considered a

good accessory—using visuals will be discussed later—

there are times when it is the simplest accessory and the

best at communicating the message.

Element 4: Color Selection

Determining the proper colors for a communication can

help reinforce the message and improve the simplicity

of the overall communication. That said, color selection

isn’t always the easiest element. There are quite a few

issues to address when selecting colors for a data

communication, including:

Audience sensitivity to color (color blindness)

How the user will produce the communication

(color or black and white)

Predefined meaning of colors

Should the colors be complimentary or divergent?



NOTES Element 5: Visual Type

Determining the right chart type, or whether you should

even use a chart, can be a daunting decision. The

traditional types are the classics for a reason, though a

pie chart isn’t always the right choice. Careful

consideration should be given to the purpose of a given

visual type and how that relates to the overall objective

of your communication. You should select a visual type

that helps you accomplish your objective and

effectively deliver your message. For instance, the

following visual, a flow chart, effectively

communicates the options for selecting your visual.

While a couple of the visual types appear as options in

multiple categories, there are few that meet this criteria.

Each visual type has a particular purpose and should be

used as such. Though there is a growing industry related to

data visualization as art, effective communication in a



NOTES business sense is typically not designed in the same manner

as data art. Selecting a visual type for novelty purposes

does not help accomplish your objectives.

There are likely many more design elements to be

considered in the design of data communications. That said,

attentively addressing the five elements discussed

previously will help set your communication up to be

effective in meeting its objectives.

Communication Principles

To successfully design effective data communications, it is

important to have a framework through which to evaluate

all data communications. There are five key principles to

designing successful data communications.

Principle 1: Focus on Your Purpose

While data is important in communicating the results of

data analyses, it is not the primary area of focus.

Rather, the primary focus of any data communication

should be accomplishing your overall objective. Are

you trying to educate? Persuade? Explain? Entertain?

These are but a few of the potential objectives that

might be behind what you are communicating. Each

communication is going to have a unique objective.

Whatever the objective, it should be the primary focus

as you go about designing an effective data

communication.

Principle 2: The Audience Is More Important Than

the Data

Depending on what industry you’re in or your particular

role, the importance of the audience can vary.

Designing a communication in the public sector where

it might be subject to Freedom of Information requests

is different from designing a communication in a



NOTES private organization where it will stay internal.

Likewise, communications that are going to be used

internally by internal audit are going to be designed

differently than those presented to a jury for

consideration in a trial.

This is probably one of the most overlooked areas of

data communication, though it is easily one of the most

important. Once you have properly assessed the

objective of your communication, you must figure out

who is going to be using it. It is entirely possible the

results of an analysis will be used by a variety of

individuals, all with different needs from the standpoint

of using the communication. Some of the key

considerations of an audience include the following.

INTERNAL VERSUS EXTERNAL

You will need to assess where the users of the data

communication reside. Are they internal to the

organization, or are they external? If you are an

outside consultant or investigator, determine

whether the communication going to be used inside

your organization or outside. This determination

will be critical, as it will affect the level of detail

you need to include, additional context to provide,

and the amount of sensitive data that can be

included.

For example, internal audiences tend to have a

much greater understanding of corporate policies,

culture, and other nuances specific to an

organization. External users might not have the

benefit and require that the communication include

more of these elements.



NOTES EMOTIONAL VERSUS RATIONAL

In an ideal situation, all users of a communication

would be expected to behave similarly. We all

know that is not the case. Depending on the

individual, situation, or circumstances, people will

typically behave one of two ways—rationally or

emotionally. Those who behave in a rational way

are more likely to evaluate the full communication,

consider its meaning and your objective, and draw a

conclusion based on the totality of data. Emotional

individuals, on the other hand, are just about as

opposite as possible. They likely have an agenda

and are looking for data that supports that agenda or

provides “fuel for their fire.” Communications

where emotional users are involved might provide

less story around the data and a more concise

message.

AGREEABLE VERSUS CONFRONTATIONAL

In the same vein as the rationality of a user is their

predisposition to a particular conclusion. The

agreeability of a user base will affect your initial

objective. If someone is already agreeable, the

communication can be more concise and provide

only the minimum of what needs to be

communicated to get the message across. Whereas

if a user is confrontational, the communication

might take on more of a persuasive objective. These

typically have additional context and detail to

further emphasize the message of the

communication.

EXPERT VERSUS NOVICE

The final characteristic of the audience we will

address is the level of experience and knowledge of

the particular topic area. Complex topics



NOTES communicated to someone with years of experience

in that particular area can result in complex

communications because they have a desire to

understand the nuances of the situation. Conversely,

communicating the same topic to someone with no

experience in that area will result in a vastly

different communication.

As an example, consider explaining manipulation of

financial statements to an audience of non-

accountants. Instantly, this requires a different

communication than would be required with another

accountant. The communication between

accountants would undoubtedly include debits,

credits, T-accounts, and other accounting-specific

items. Using debits, credits, or T-accounts with a

non-accountant is a recipe for disaster. Instead, the

focus shifts from the accounting aspect of things to

the outcome. Debits and credits that move amounts

between accounts become a visual that shows the

movement of buckets from balance sheet to income

statement. Rather than communicating all of the

data and details in accounting language, you focus

on communicating the issue at hand in everyday

terms.

Principle 3: Be Selective—Not All Data Is Equal

An easy trap to fall into is communicating all of the

data back to the user of the communication. After all,

you analyzed thousands, if not millions, of records, and

it is important for the user to grasp the magnitude of

your analysis. Right? Wrong. Going to back to our first

objective, we first have to focus on our message and

determine what our objective is with the

communication. From there, select the data that helps

communicate the message and meet our objective. No



NOTES more, no less. As an example, consider the following

visuals:

Both visuals come from the same data source, a check

register, and the latter visual is fully contained within

the first. However, they provide very different

messages. With the first, it is clear to the user that the

organization issues checks on Thursday. This is great if

that is our message. However, if the message is that the

organization had checks dated on a weekend, the

message is lost in all the other data in the visual. The



NOTES second visual is much more effective at communicating

this message because we removed the unnecessary data.

This principle applies not only to the data presented in a

communication, such as days of the week above, but

also in the variety of detail presented. While it might

seem like a good idea to present every element possible,

careful consideration should be given to the detail

provided beyond the initial communication.

Principle 4: Think Visual

One of the more challenging approaches to

communication about complex data and analyses is the

narrative form of explanation. Although there are many

times when a report is required, the use of visual

elements can help simplify the complex nature of the

data. This is not to say that all narrative should be

replaced with visuals. Rather, the visuals serve as a

complement to the narrative nature of a report to help

clarify the conclusion to the user of the communication.

Principle 5: Determine the Role of Data Before You

Begin

One of the habits discussed in the book The 7 Habits of

Highly Effective People is also one of the five key

communication principles—begin with the end in mind.

Before you begin to design your communication, you

need to have a plan for how to use the data in the

communication. If you have considered the previous

four communication principles, you’ll have a pretty

good feel for the level of detail you will need and how

it will need to be presented. You don’t want to get

halfway through the design of a communication and

realize you’d rather not have all of the data displayed,

only a summary.



NOTES Applications to Fraud Examiners

Fraud examiners are in a unique position in that they can be

internal or external to an organization, proactively using

data for fraud prevention and risk mitigation, reactively

using data in an investigation, or even presenting to a

prosecutor, judge or jury in a trial. As such, all of the

principles and design elements might come into play at

some point in determining how to effectively communicate

complex data.

Conclusion

For years, fraud examiners have worked to become

effective communicators in interviews and testimony. And

over the past few years, examiners have been working to

improve their data analysis skills. Now is the time to bring

those two skillsets together. To determine how best to

communicate the analyses they have performed, how it

relates to the overall examination, and what it means.

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