Final answer:
Data analytics facilitate fraud detection in accounting by analyzing journal entries for unusual patterns, such as terminology, unauthorized access, and volume near approval limits.
Step-by-step explanation:
The use of data analytics allows for an algorithm that searches for questionable terminology in journal entries, entries from unauthorized employees and systems, and a high number of journal entries just under an authorization limit. Utilities leveraging data analytics, particularly in the field of accounting and audit, can significantly enhance the detection and prevention of fraud. These sophisticated tools analyze data patterns and outliers that may indicate fraudulent activity. By setting up rules and patterns for the algorithm to look for, such as entries just below an approval threshold or alterations by unauthorized personnel, companies can proactively monitor transactions and mitigate the risk of financial irregularities.