IDEA Basics, Getting Started, and Basics of Importing Data

AuditNet® Training without Travel™IDEA Software Training via Practical Application

IDEA Basics, Getting Started, and Basics of Importing Data

Guest Presenter:Richard Cascarino, MBA, CIA, CFE,CRMA, CISMRichard Cascarino & Associates

About Jim Kaplan CIA CFE

President and Founder of AuditNet®, the global resource for auditors (now available on Apple, Microsoft and Android devices)

Auditor, Web Site Guru, Internet for Auditors Pioneer Recipient of the IIA’s Bradford

Cadmus Memorial Award. Author of “The Auditor’s Guide

to Internet Resources” 2nd Edition

Richard Cascarino MBA CIA CISM CFE

Principal of Richard Cascarino & Associates based in Colorado USA

Over 30 years experience in IT audit training and consultancy

Past President of the Institute of Internal Auditors in South Africa

Member of ISACA, ACFE, IIA Author of Auditor's Guide to IT

Auditing and Corporate Fraud and Internal Control

Copyright © 2014 AuditNet® and Richard Cascarino & Associates

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Today’s Agenda

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3

Starting a Project

4

Importing Data

1 About IDEA

Planning the Audit

Page 6


Computer Assisted Audit Solutions

IT needed because of large volumes of data in multiple locations

CAAS involves Merging software into an audit programme Predefining key control questions Use of the technology to analyze the data and

provide the answers Advantages Increased auditor productivity Increased audit creativity Consistent methodology

7


IDEA Interactive Data Extraction and Analysis 22 years youngDatabase limitations: • 2.1 billion records (100,000 records for IDEA Express) depending on the operating system

• 1.8 Exabytes file size (Tera, Peta, Exa) (Quintillion)

Some facilities not available in IDEA (Server)

8


Starting IDEA Pre Version 9

Start Programs IDEA Setting the Working Folder ‐ contains

data files Equations Views import definitions

File Set Working Folder C:\User\<username>\My Documents\IDEA\Samples


Starting IDEA Version 9

Start Programs IDEA Setting the Working Folder ‐ contains

data files Equations Views import definitions

Select Managed Projects Samples

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Basic Idea Screen

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12

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3

8

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Areas1.Menu Bar2.Operations Toolbar3.File Explorer Toolbar4.File Explorer Window5.Database Window6.Flyout Windows7.Status Bar8.Properties Window

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Polling Question 1


PropertiesDataHistoryField StatisticsControl TotalCriteriaResultsIndicesComments

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Results Window Gap Detection (optional) Stratification (optional) Summarization (optional) Aging (optional) Generate Random Numbers Pivot Table Monetary Unit Sampling Classical Variable Sampling Benford’s Law Chart Data

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Starting a ProjectSelect ProjectClick on SamplesChooseSample-Customers

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Pick Up Customer File• Build indexes for

– Company– Last Name– Credit Limit

• Reverse Index• Look for duplicate Last Names• Analysis• Duplicate Key• Detection• Key

– Last_Name– OK– OK

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More DuplicatesLook for Duplicate last and first

namesLook for Duplicate last and first

names in the same countryLook for Duplicate Credit Limits

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SummarizationAnalysisSummarizationCredit_LimitGo to the High ValuesFind out who they are

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Polling Question 2


Getting the DataDESKTOP (+)Microsoft AccessC:\Users\yourname\My IDEA

Documents\Projects\SAMPLES\Customer.MDBNEXTOK

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Changing the LayoutGo to the divider between Cust_No

and First_ NameClick and DragClick on the Credit_Lim ColumnClick and drag it next to

Last_NameRight Click on Cust_No and

change it to blue

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View Field Statistics In the Properties Window Field Statistics YESNote # of Records: 341 # of Zero Items: 0Average Value: 62,475.07Minimum Value: 2,000Maximum Value: 3,901,000

Click the fields highlighted in Blue

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Picking a Sample In Properties Window Data Sampling Random Number of Records 10 File Name Sample of Customers Fields Happy with all OK OK Close Sample of Customers

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Polling Question 3


Extracting Records Data Extractions Direct Extraction In File Name Large Credit Limits Equation Editor (Calculator) Build Credit_Lim >= 30000 Validate Button (second from left) OK OK Should be 61 records Close all open files

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Importing a Text FileUse Desktop (+) to import a text file

called sales.txt from the Tutorial folderTry it as an EBCDIC fileGo back to ASCIINextTry changing the record lengthNextYou will need the file layout

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Sales.txt Layout

Field Name Type Start Len Dec Mask Description INV_NO 1 7 Invoice Number TRANS_DATE D 8 8 YYYYMMDD Transaction Date PAY_TYPE C 16 4 Type of Payment SALESMAN N 20 3 Salesman ID CUST_NO N 23 5 Customer Number PROD_CODE C 28 2 Product Code

AMOUNT N 30 11 2 Transaction Amount

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Defining Files Next If data to be filtered click Equation Editor Next We want to:

Import the File Generate Field Statistics Call the database Sales Transactions

Finish (If you make a mistake Data then Field

Manipulation)

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Summarizing DataSelect Sales TransactionsAnalysisSummarizationFields to summarize: CUST_NONumeric fields to total: AMOUNTChoose Create databaseChoose Use Quick SummarizationFile Name is Summarized Transactions

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Stratifying Data Select Summarized Transactions Create Field Statistics (remember how?) Go back to Data Right click any record Show Field Stats Choose

Net value Absolute value Minimum value Maximum value

OK then adjust column widths

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Removing Field Statistics

Right click any record Show Field Stats Clear All OK Analysis Stratification Choose

– Fields to Stratify: Amount_Sum– Fields to total on: No_of_Recs

Make Increment 5000 Click Upper Limit in rows 1-5 Make Increment 25000 Click Upper Limit in rows 6-12 Result Name Numeric Stratification OK

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Polling Question 4


Selecting Controls For Testing

Establish "prime" Controls for an Area Identify Controls covering several Areas Identify Stand-alone Controls Controls which provide Evidence Do NOT try to prove a Negative

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Primary Areas of Concern

Complex Systems cannot be re-created manually Many computer records are intelligible only to

computers Most systems allow multiple access "Computers can be trusted" Disasters really mean Disaster

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CAAT Types and their Usage

Application audit tools are not always CAATs "Any tangible aid that assists an auditor" Tools to obtain information Tools to evaluate controls Tools to verify controls Automated tools

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Obtaining information

Interviews Questionnaires Analytical audit flowcharts Flowcharting software Documentation Review

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Control Evaluation

Application control matrix Components Concerns

Adequate Inadequate

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Control Verification

Audit around Test data Reperformance of key functions Reprocess selected items

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Automated Tools (CAATS)

Test Data Generators Flowcharting Packages Specialized Audit Software Utility Programs Generalized Audit Software

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Polling Question 5


Specialized Audit Software

Can accomplish any audit task but High development and maintenance cost Require specific I.S. skills Must be "verified" if not written by the

auditor High degree of obsolescence

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Generalized Audit Software

"Prefabricated" audit tests Each use is a one-off Auditor has direct control Lower development cost Fast to implement

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Applications of Generalized Audit Software

Detective examination of files Verification of processing controls File interrogations Management inquiries

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Types of Audit Software

Program generators Macrolanguages Audit-specific tools Data downloaders Micro-based software

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Audit Software Functions

File access Arithmetic operations Logic operations Record handling Update Output Statistical File comparison Graphics

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Polling Question 6


Determining the Appropriate CAAT

Depends on the Audit Objective and selected technique Application Audit Techniques Purposes 1 To verify processing operation 2 To verify the results of processing

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Common Problems

Getting the wrong files Getting the wrong layout Documentation is out of date Prejudging results Never believe what the first printout tells you

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Supplemental Information

• AuditNet Guide to Downloading Data • Data Request Sample Letter• CAATS – Web site from Dave Coderre

– Generic Approach to the Application of Data Analysis to Auditing ©CAATS 2007

– http://www.caats.ca• Computer Assisted Audit Tools and Techiques

– http://www.auditnet.org/CAATT.htm• Data Analysis Software Demo Evaluations

– ACL – http://www.acl.com– IDEA - http://www.caseware.com/products/idea


Questions?• Any Questions?

Don’t be Shy!


Training ScheduleIDEA Software Training via Practical Application1. IDEA Basics, Getting Started, and Basics of Importing Data2. Importing Data ‐ The Complete Course in All File Types and Data

Tricks to Get Your Data Ready for Analysis 3. Conducting basic Data Analysis with IDEA 4. Reporting using IDEA 5. Importing Data from Reports using the IDEA Report Reader 6. Advanced Report Importing7. Using Statistics in IDEA 8. Continuous Monitoring using Advanced Statistical Analysis 9. Basic Script Writing in IDEA 10. Using advanced @Functions 11. Advanced Script Writing in IDEA Part 1 12. Advanced Script Writing in IDEA Part 2


Thank You!Richard Cascarino, MBA, CIA, CISM, CFE

Richard Cascarino & Associates970-291-1497

[email protected]

Jim KaplanAuditNet LLC®800-385-1625

[email protected]

Data & Analytics

IDEA Basics, Getting Started, and Basics of Importing Data