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Data Analytics

Updated: 3/6/2013

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Agenda

Updated: 11/10/2010

• About Us• Define Data Analytics• Data Diagram• Tools to Analyze Data • ACL Demo• AP Testing Case Study• SQL Demo• SAS Demo• JE Analysis• Questions

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• Aaron Wilton

• Maria Hao

Introductions

Education– Colorado State University

Bachelor Degree in: Accounting & Computer Information Systems

– Colorado State University Master of Accountancy

Work Experience– Deloitte (AERS Advisory)

Certification– CPA– CISA

Aaron Wilton

Education– Jiangxi University of Finance and Economics, China

Bachelor Degree in: Accounting– University of Denver

Master of Accountancy

Work Experience– Prior to Deloitte– Deloitte (AERS Advisory)

Certification– CPA– CISA

Yuhua (Maria) Hao

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Data Analytics

What is Data Analytics?

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Data Diagram

Database #1Process Database #2

Application (front-end): PeopleSoft, SAP, and some reporting tools (e.g., Essbase, Business Object), etc.

Database (back-end): SQL, Oracle, etc.

Interface: BizTalk, webMethods, etc.

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Tools to Analyze Data

• MS Excel• MS Access• SQL Server Management Studio• Audit Command Language (ACL)• SAS• Others

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ACL Demo

• How to import data• How to use the basic functions to run queries• Advantage of ACL:

– Cannot change the raw data– Log all the procedures performed

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Accounts Payable Testing Case Study

Background:

XYZ Corporation is a manufacturing client with offices at multiple locations. We have been engaged to provide services to the internal audit function of XYZ Corp. The client recently acquired a new business unit and is facing issues integrating the financial systems from the newly acquired business. The client is particularly concerned that these issues could be more significant around accounts payable processing and supplier master maintenance and could result in missing or invalid information or duplicate disbursements that might have been made due to lack of controls. The client is also unsure whether the user rights are properly set up to access/update various files.

The internal audit function does not currently have the skill set to develop the data analytics that might help them better gauge the extent of the problem and the client has reached out to us for help. They would like us to test vendor master data and transactional information for the period starting 01/01/2009 to 12/31/2009.

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AP Risk Brainstorm

• Disbursements• Vendor Master File Maintenance• Open AP• Other Fraud Risks

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AP Risk Brainstorm

Disbursements– Duplicate payments– Inappropriate access– Active vendors only– Reconcile to authorized invoices– Timely (i.e. after invoice receipt)

Vendor Master File Maintenance– SOD relative to disbursements

Open AP– The Company’s Credit rating

Other Fraud Risks– Sequential checks– Fictitious vendors

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SQL Demo

• Join several tables in the same time• Deal with complicated calculations

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SAS Demo

• Benefits• Leaves Original data set untouched• Documented steps/procedures

• Disadvantages• Complicated, Steep Learning Curve

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Journal Entry Testing

• Entries made to unusual accounts– Purpose: To identify entries made to unusual accounts.– Logic: Performs word search within the account description field for the keywords specified in the

AIF

• Users with few postings– Purpose: To identify users who posted less than X nonstandard entries or X standard entries

during the period under review.– Logic: Total number of entries posted by each user for each type of population are calculated. – Users with less than the specified number of entries in the AIF are flagged.– Output: User analysis tab

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Journal Entry Analysis

– Entries posted on holidays or weekends– Purpose: To identify entries posted on Saturdays, Sundays, or holidays.– Logic: Finds entries with a posted date that occurs on Saturdays, Sundays, or holidays.

– The option to search for Saturdays, Sundays, or holidays is specified in the AIF– Output: Output contains entries flagged for each Saturday, Sunday, or holiday specified

• Large debits to revenue at the beginning of a quarter– Purpose: To identify journal lines that debit revenue for more than $X that were input and effective

within the first Y days of a quarter.– Logic:

Finds all the journal lines that:– Were posted to accounts that are mapped to account subtype “Revenues”

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Questions

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