april 28, 2015 virginia tech. data analytics “analytics is the combustion engine of business, and...
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Data Analytics
“Analytics is the combustion engine of business, and it will be necessary for organizations that want to grow, innovate and optimize efficiency. Given its far-reaching impact, it’s one of the few software markets that thrive even in adversity”
Rita Sallam, BI Analyst, Gartner
What is Data Analytics? How would you define it
PwC
Draft
Visualization
Dashboarding
Trending & comparisons
Data
Financial, Operational Structured, Unstructured,
Internal, External
Analytics; discovery and communication of meaningful patterns in data
Big data; collection of large and complex data sets
Speed and portability; available anytime, anywhere
Characteristics of analytics today
PwC
Draft
Analytics
Data Management Monitoring
Visualization
Core Technological Components and Key Vendors
To have an effective analytics program for a complex organization, there is no “one size fits all” for technology. An analytics toolbox is necessary to bring the highest value
PwC
Spotfire Qlikview TableauLavastorm
What tools are being used?Major vendors within the analytics space
PwC
Comparison
Tools
Capacity
Ease of use
Availability
Analytic Capabilities
Documentation
Microsoft ExcelMicrosoft Access
ACL
• 65,536 rows by 256 columns (pre ’07 versions)• 255 chars per field
• 2 GB database• 255 fields (columns)
•Unlimited
• Standard, easy to use office application
• Training is required
• Requires basic training• Menu based
• Standard installation on PwC laptop
• Standard installation on PwC laptop
• Standard installation on PwC laptop license
• Data analysis toolkit• Built-in functions
• Built in functions• Great for joining tables
• Complete set of preprogrammed analysis
• To be done manually by user
• To be done manually by user
•Log file is documents every
step continuously
Excellent Satisfactory Poor Very Poor Good
Tool choice should
depend on user
expertise, data to
analyze and analysis to
be performed
PwC
ACLACL
Audit Command Language
Point-and-click based software with ability to create executable scripts
Commonly used for data analysis related to fraud detection among Big Four firms
ACL can be applied to assist with:
Journal Entry Testing
Internal Audit Testing
Record Sampling
PwC
Industry Focus
• Media
• Entertainment
• Retail
• Financial Services
• Insurance
• Pharmaceutical
• Healthcare
• Technology
• Industrials
• Consumer Products
Data Auditing is“Industry Agnostic”
PwC
Business AnalysisAudit Support
• SAS99 Journal Entry Testing• Testing of Unrecorded Liabilities• AR Liquidation analysis• Revenue Recognition Re-performance• Vendor and Accounts Payable Analysis• Fixed Asset Analysis• Inventory Testing Analysis
Non-Audit Support
• Travel and Expense Investigation• Vendor Master Data Analysis• Inventory Analysis• Database Development• Process Automation• Data Migration Validations
PwC
DraftAnalytics Methodology - AVAD
Acquisition
Acquisition: Gather data from client systems; collect system business rules through interviews and available documentation
DeliveryDelivery and Documentation: Reports, transformed data for target systems, graphic representation, models, etc.
ValidationValidation: Assess data; ensure data adheres to business rules; reconcile
Analysis: Analyze data to address business issues (fraud, errors, buying patterns,target model support, etc.)
Analysis
AcquisitionValidation
Delivery
Analysis
PwC
Draft
IA / BasePaksTechnology
12
Client Data
Raw Data
Base
Pak
Simplified Data Model
Sta
nd
ard
ized
Test
s, A
naly
tics
Standardized Results
StandardizedAnalysis
Standardized
Reporting
Standardized Dashboards
Why IA / BasePaks
Repeatability, Sustainability
Efficiency
Reliability
Foundational Data Analytics (Demo)
“The transformational change occurring in organizations today is dependent upon adopting insight from data ... Everyone is now an analyst. ”Data Science Central
“The transformational change occurring in organizations today is dependent upon adopting insight from data ... Everyone is now an
analyst. ”Data Science Central
“Last year people stored enough data to fill 60,000 Libraries of Congress...”
The Economist
“90% of the world’s data was created in the past two years ” IBM
“…Data volume will double over the next two years” Gartner
Drivers of Data
Auditing
Common Data
Challenges
Types of Data
Embedding Analytics throughout the Lifecycle
Data Analytic Tools and Visualization
Benefits of Data Auditing
AICPA’s Audit Data Standards
How Can Analytics Help?