4. Data Analysis Definition
Data analytics is defined as the process of
inspecting, cleaning, transforming, and
modeling data with the goal of highlighting
useful information, suggesting conclusions,
and supporting decision making.
4
Source: Pune University, Vishwakarma Institute of Technology
5. Points of Contention
Benefits
More Comprehensive Assurance
Efficiency
Reporting
Challenges
Time
Training
Data
5
6. Are we failing our stakeholders?
6
SOURCE : PWC 2013 State of the Internal Audit Profession Study
Plan to expand use of data analytics but
do not have a well developed plan
69 %
Data analytics are used regularly
11. Vision
Agree on what is most important
Formal discussion with CAE
11
12. Structure
Define a structure
Designated Analytics Champion within the
department?
OR
Each Project Manager expected to lead analytics?
Identify key contacts for each source system
Get access to data dictionary if it exists
12
13. Data Pull Methodology
How are you going to pull Data from source systems?
From within the application?
From the database?
Open Database Connectivity (ODBC) ?
Relying on auditee to give you a file
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14. Data Pull: Application
14
Benefit Challenge
No additional licensing cost Normally results limited to a certain
maximum number of records
Auditors do no not have to structure
SQL themselves
Can potentially „burden‟
application server
Results dependent on access
15. Data Pull: Database
15
Benefit Challenge
Free form ability to structure SQL
allows more flexibility
Additional licensing cost
No limitation on number of records
that are pulled in
Initial buy in from IT to get read-only
access to databases.
Learning curve if unfamiliar with SQL
16. Data Pull: ODBC
16
Benefit Challenge
Data imported directly into data
analytics tool
Limited to tables exist within the
database.
No query to create; easiest Need to get IT to create custom
views for each unique need
No cost generally
17. Talking to IT
Schedule a discussion
Request read-only access
Production Vs. Test Environment
Security of data
17
22. Finding Data Banner
Go to the form with the information
Move cursor to field you are interested in
Help menu >Dynamic Help Query
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23. What is SQL?
Structured Query Language
Language utilized for getting information from and
updating a database.
Can get complex ……….. BUT
3-4 main sections normally for our purposes
23
24. SQL Basics
24
SQL STATEMENT ‘ SECTION BRIEF DESCRIPTION
SELECT Defines the fields that will be displayed within the
results
FROM identifies tables where fields are stored within the
database
WHERE specifies limiting criteria (if any)
GROUP BY
ORDER BY
Groups information
Used for sorting
25. Sample Query
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SELECT
A.EMPLID, A. DEPT, B.ADDRESS, B.ZIPCODE
FROM
PS_Employee A, PS_BIO B
WHERE
A.EMPLID=B.EMPLOYEE
AND A.EMPLID=123456789
26. Developing Data Analytics Process
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Understand
Business
Process
Understand
How Business
Process Data
Stored in ERP
„Interesting‟
questions can
you answer
with the data?
Pull Data
Validate you
have right
sources BEFORE
beginning
analysis
27. Engagement: Procure to Pay
27
Source: “Automating the Audit” Price Waters House Coopers July 2010
28. Engagement: Procure to Pay
28
Source: “Automating the Audit” Price Waters House Coopers July 2010
29. Engagement: Procure to Pay
29
Source: “Automating the Audit” Price Waters House Coopers July 2010
30. How do I start?
“Quick Wins” to gain confidence
Identify critical processes/areas for review
Rinse/Wash/Repeat
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31. Purchasing Card Analysis
Starting Approach
Identify Cardholders and their transactions
Review monthly limits
Determine the average expense amount
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32. Purchasing Card Analysis
Intermediate Approach
Identify possible split purchases
Perform analysis on MCC codes
Determine if Cardholder is active employee
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35. Keyword Script
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(@Isini(""Barney"", Merchant_Name )
@Isini
It searches for the occurrence of a specified string or piece of text in a Character
field, Date field, or string.
Syntax
@Isini(String1, String2)
37. Purchasing Card Tests Developed
Consistent purchases at same vendor by one cardholder
Weekend purchases
International purchases
Dormant Cards
Purchasing Trends
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38. Example 1: Departmental Analytics Tool
Objective: To obtain financial and human resource information for the
audit area
Our Process:
Quarterly pull of data from PeopleSoft Financials and PeopleSoft HR.
Auditor limits data using IDEA scripts
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45. Fields Required
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Pay Check
• Employee ID
• Payment End
Date
• Paygroup
• Paycheck
Number
Pay Earning
Distributions
• Department ID
• Employee
Record
• Account
• Position
Number
• Jobcode
• Earnings
• Earnings Code
Account Code
• Description
• Chartfield1
• Account Code
Personal Data
• Name
46. Labor Distribution
46
Determine where the data is located
Decide the tables needed
Determine Required Fields
Identify Criteria for Join
47. Join Criteria
47
Pay Check
• Company
• Paygroup
• Payment End
Date
• Off Cycle
• Page Number
• Line Number
• Separate Check
• Employee ID
Pay Beginning
Distributions
• Company
• Paygroup
• Payment End
Date
• Off Cycle
• Page Number
• Line Number
• Separate Check
• Account Code
Account Code
• Account Code
Personal Data
• Employee ID
48. Labor Distribution SQL
SELECT B.DEPTID, D.NAME, A.EMPLID, B.EMPL_RCD, C.DESCR, C.CHARTFIELD1, B.ACCOUNT,
B.POSITION_NBR, B.JOBCODE, TO_CHAR(A.PAY_END_DT,'YYYY-MM-DD'), B.EARNINGS, A.PAYGROUP,
A.PAYCHECK_NBR, B.ERNCD, C.ACCT_CD, C.FUND_CODE
48
FROM PS_PAY_CHECK A, PS_PAY_ERN_DIST B, PS_ACCT_CD_TBL C, PS_PERSONAL_VW D
WHERE ( A.COMPANY = B.COMPANY
AND A.PAYGROUP = B.PAYGROUP
AND A.PAY_END_DT = B.PAY_END_DT
AND A.OFF_CYCLE = B.OFF_CYCLE
AND A.PAGE_NUM = B.PAGE_NUM
AND A.LINE_NUM = B.LINE_NUM
AND A.SEPCHK = B.SEPCHK
AND C.ACCT_CD = B.ACCT_CD
AND D.EMPLID = A.EMPLID )
51. Value Added
Easily able to focus on areas or
transactions that need more review
Consistent audit methodology regardless
of Auditor that is working on the audit
Enhanced sample selection process
Improved audit reporting
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52. Example 2: Return to Title IV Audit
Audit Objective: To ensure that institution was fully complying with
R2TIV regulations.
Return of financial aid funds when a recipient ceases to be enrolled
prior to the end of a payment period or period of enrollment.
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53. Withdrawals
Withdrawal Date
Date student began the formal withdrawal process or notified…
Mid-point, if no notification
Date of illness, accident, etc.
Beginning of an approved LOA if student does not return
Last date at an academically-related activity
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54. Requirements
The Institution Must:
Determine date of student‟s withdrawal
Calculate percent of period completed
Determine amount earned by applying percent completed to total of
amounts disbursed and amounts that could have been disbursed
Return unearned funds to Title IV programs, or pay student post-
withdrawal disbursement
Determine Title IV overpayment, if any
54
58. Test Performed
Validate accuracy of calculation
Verified completeness of calculations
Timeliness of calculation
Timeliness of returns
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59. Value Added
Highlighted progress department made in achieving compliance with
regulations
Institution able to return money to the respective programs without
being penalized during a federal review
Random sampling would not have been able to identify all potential
students with compliance issues
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60. Example 3: Executive Travel Background
Audit Objective: To ensure that executive travel expenses made by
executives, or on behalf of executives, were in compliance with
travel and entertainment policies and procedures
Our Process –Corporate Travel Planners (CTP) booking for flights,
hotels, and car rentals, Citibank Purchasing Card expenses,
Expense Reimbursements issued after travel
Critical Data Elements: Source Data
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61. Steps Performed
Step 1 – Identify University Executives
Step 2 – Obtain Source Data
Step 3 – Data Analytics
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62. Step 1: Identifying Executives
Determine Meaning of Executive
President, Vice President, Dean, Endowed Chair
Challenges
Payroll data title does not match actual job title
Identification of executive using title
62
