Big Data Analytics Tackle Tax Evasion

Erica Brogna, Verrazano Honors Class of 2019, is earning a degree in Accounting with minors in Business Marketing and Business Finance

Who really wants to write a 20 page paper on “math?” I have always been a hardworking student, and ever since I was young, my education was always my main focus. I love numbers and math; they just click. As a result, I decided to become an Accounting Major, with a minor in Business Finance and Business Marketing. As an Accounting Major, I dreaded completing the Capstone Project. Even as a lover of accounting, I can even say that accounting is not one of the most interesting topics to research. So over the past three years, I kept telling myself I had more time. Then, the scariest thing happened: senior year came. I had no idea how I would even begin to approach this project with schoolwork and extracurricular activities, like the Accounting Club, competing for my attention.

Erica putting the finishing touches on her capstone

Luckily, some of my fellow classmates had already written and presented their projects at the Undergraduate Research Conference, so I finally understood that it was possible to juggle both schoolwork and outside research at the same time. Being a member of the Verrazano Honors Program, I was also encouraged to obtain Departmental Honors in Accounting, my major. I had 20 pages to write in four months, along with the 5 classes I was taking, so I knew it was time to get to work. Picking a topic had to be one of the most stressful parts of the project, since accounting is a very broad topic. I decided to narrow it down to the materials I fully grasped. I understood Taxation, since I had gained hands-on experience by completing an internship preparing free tax returns for individuals who could not afford their own tax accountant. Taxation, however, was not enough for me; I needed more pizzazz. One of the classes I was taking was Accounting 422, an Auditing class, which drew my interest. I was also curious about the new up and coming technological advancements in accounting, also known as Big Data Analytics. I combined these topics to create my own theme: “Big Data Analytics Tackle Tax Evasion”.

With the help of my faculty advisor, an auditor herself, I delve into the research of how the ever-changing, cost effective technology tools, otherwise known as Big Data Analytics, are being applied in order to enhance auditors’ detection of tax fraud and taxpayer identity theft. This project brought to my attention information that is often hidden from the public: modern day auditors are encountering monumental obstacles, including the fact that they are dealing with thousands of tax evading employees, yet investigators are equipped with limited resources and obsolete learning strategies that have become ineffective. However, due to the creation of Big Data Analytics, auditors have begun to use new and improved software suites and applications, such as the Statistical Analysis System (SAS) and Microsoft Excel, in order to efficiently manage and review enormous amounts of data. I do not work well with computers; however, learning how to use SAS and Microsoft Excel was a breeze, making these applications advantageous to use due to their easy to read instructions and controls.

An Accounting Club meeting reviewing CPA studying techniques with Mansour Farhat, an educational YouTuber

No one ever said writing this paper would be easy, but it was worth all of the exhausting hours. I learned more than I ever would have just simply sitting in a classroom! I am very grateful for all of the knowledge I can use toward my future career. I am also very thankful for my faculty advisor who pushed me to my limits; she helped to give me a feeling of satisfaction when I completed the project. Lastly, I am beyond thankful for the Verrazano Honors School for all of the amazing opportunities and wonderful memories.  

As for one last word of advice: never wait until the last minute!