introduction to caseware idea - designed by auditors for auditors
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INTRODUCTION TO CASEWARE IDEA DESIGNED BY AUDITORS FOR AUDITORS
AGENDA
• Introduction to CaseWare IDEA Inc.
ABOUT CASEWARE IDEA INC.
• Founded in 1988
• Industry leader in solutions for finance, accounting, governance, risk and audit professionals
• Over 400,000 users of our technologies across 150 countries and 16 languages
• Customers include Fortune 500 companies, Global 500 companies, 9 governments of the 15 largest economies
WHY DATA ANALYTICS?
1. Volume of transactions has increased
2. Absence of physical evidence (all electronic)
3. Regulatory focus on fraud and controls
4. Audit standards recommend using CAATs
5. Need to test 100% of transactions
WHY DATA ANALYTICS?
6. Pressure on costs and efficiency
7. Manage risks more effectively
8. Pressure from the auditees to use more analytics
9. Value added (methodology)
CHALLENGES
• Data acquisition
• Retrieving data from different software and ERP systems
• Lack of standards
• Skills
• Acceptance and mindset
• Fundamental change in audit techniques
• Changes in auditing standards
• Which manual tests can be replaced
AGENDA
• Introduction to CaseWare IDEA Inc.
• Introduction IDEA Data Analysis software
DATA ANALYSIS PROCESS
RETRIEVAL IMPORT
CLEAN
PREPARE
VALIDATE ANALYSIS REPORTING
DATA ACQUISITION
IDEA allows you to import and export data in a multitude of formats, including files originating from large mainframe computers and accounting software
IDEA
GETTING/UNDERSTANDING DATA
• Import from CSV, Excel, PDF, Reports
• Import directly from accounting software
• Connectors to ERP
• Different format = TAGGING
• Participating in data standards
AISSAF-T
Audit Data Standard
Audit Data Collection
DATA ANALYSIS
Pivot Tables
Reports
Charts
Exports
History
Project Overview
Automate
Import from virtually any
source – from PDF to ERP
Extract • Sort • Search • Group Calculated Fields • Stratify •
Summarize Age • Gaps Duplicates • Sample Statistics •
Join • Append • Compare
1. Import Data 2. Perform Analysis 3. Review Results
AGENDA
• Introduction to CaseWare IDEA Inc.
• Introduction IDEA Data Analysis software
• Case studies
CASE 1 - PAYMENTS
• Import
• Reconciliation / Field Stats
• Discover and Visualize the data
• Check on missing cheque numbers
• Check on duplicate cheque numbers
• Check on fuzzy duplicate suppliers
• Join with Authorization table
• Perform a stratified random Sample
CASE 2 – JOURNAL ENTRIES
• Import
• Exceptions (unbalanced entries)
• Summary by Accounts (sent to Working Papers)
CASE 3 - INVOICES
• Import
• Calculation accuracy
• Benford’s Law (Mark J. Nigrini PhD)
AGENDA
• Introduction to CaseWare IDEA Inc.
• Introduction IDEA Data Analysis software
• Case studies
• Benefits of CaseWare IDEA Data Analysis software
Complicated equations
No data integrity
User friendly interface
Data integrity
Enter a few values and receive a result
Use the Age Band column as the column field in the Pivot Table.
The oldest (i.e., first) date should be older than the oldest record.
For simplicity, use “1” (1/1/1900) as the date. This will represent the
“X days +” band.
EXCEL VS. IDEA: AGING
Not intuitive Can easily override values No drill down feature No custom graph
User friendly Read-only access Drill down feature Custom graph
Frequencies predicted by Benford’s
Law for First Digit, Second Digit,
and First Three Digit tests.
EXCEL VS. IDEA: BENFORD’S LAW
EXCEL VS IDEA – DATA PROTECTION
With protected data, you can do the following:
Duplicate Detection
Apply Benford’s Law
Summarization
Stratification
Gap Detection
Quick Extraction
Several Sampling Methods
Key Extraction
Advanced Statistical Methods
Multitask
Various Imports
Structure Reports
WHY USE CASEWARE IDEA?
1. IDEA protects the source data by allowing read only access to the client's data to avoid any unwanted changes, and maintain data integrity.
2. IDEA creates a record of all changes made to a file (database) and maintains an audit trail or log of all operations carried out on a database, including the import and each audit test.
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WHY USE CASEWARE IDEA?
3. IDEA can do the following:
• Compare, join, append, connect different files from different sources
• Extract specific transactions, identifies gaps (e.g. check number) or duplicates
• Profile data by summarizing, stratifying or aging the files
• Create useful File Statistics automatically
• Create samples using several different sampling methods
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WHY USE CASEWARE IDEA?
4. IDEA allows you to import and export data into a multitude of formats, including files originating from large mainframe computers and accounting software.
5. Allows you to easily manage your files and results and shows the source of your results
6. IDEA can read and process millions of records in seconds. There is no limit to the number of records that IDEA can process.
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Change can be difficult for anyone.
Inventor Charles Kettering once said, “The world hates change, yet it is the only thing that
has brought progress.” (IIA GTAG16)
SUMMARY: BENEFITS OF USING IDEA
1. Work more efficiently
... lower your costs
2. Work more effectively
… add more quality
3. Improve your capabilities
… add more value
INTRODUCTION TO CASEWARE IDEA DESIGNED BY AUDITORS FOR AUDITORS
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