Audit Detection Risk Reduction Using Machine Learning: Evidence from 3.3 million Transactions
This study introduces and validates a four-layer machine learning framework that significantly reduces audit detection risk and processing time compared to traditional methods by leveraging unsupervised and supervised models on 3.3 million real-world transactions from a Mongolian energy utility, while also uncovering a novel "aggregation masking effect" in Benford's Law anomalies.