How to Download IDEA for Windows Based ComputersSelect the dow.docx

How to Download IDEA for Windows Based Computers
Select the download that matches your operating system. Be
careful to select the correct version of the download. For
example if you are using Windows 10 select as shown:
Click on the link to start the download
Click on Direct Download
Be patient this runs rather slowly but you can see the time left
as it runs
Once it is complete you will see a Zip file icon
Click on the file and it will ask you to extract the files, it is a
little slow please be patient (if you missed clicking on that file
you will need to find the file in your downloads)
Click extract and it will run
Once it is complete, close out of this and go into your download
folder and find the set up file

Click on the set up file and a key code will be preset for you so
click OK
It may ask you to allow the program to be installed click yes, it
may also tell you that other items need to be installed, allow
these also. Then click install
This may take several minutes and run several screens similar to
those below (depending on your operating system). Click Next,
Ok or Install then Finish. Keep in mind your screens may vary a
little depending on your computer.
Be sure to say Yes o accept the license terms
If you are having trouble with the install at this point, try this
link but note the limitations.
As a secondary download that doesn’t require extracting, here is
the standard demo version for 1000 records (compatible with
the IDEA workbook and the IDEA tutorial)
https://support.casewareanalytics.com/public/downloadidea/
This is the easiest version to install. It does not include the
workbook or workbook data files though.
INTRODUCTION TO CaseWare IDEA
Provided by Audimation Services, Inc. & the IDEA Academic
Partnership Program
1

What Is IDEA?
CaseWare IDEA is a CAAT(Computer Assisted Audit Tool)
designed by auditors for auditors (and other data analysts).
IDEA allows auditors to analyze 100% of the data, as opposed
to the traditional 10%. IDEA is a user-friendly tool that makes
data mining and data analysis easy and efficient.
History of IDEA
IDEA is a data analysis tool that was originally created in
Canada by the Canadian Institute of Chartered Accountants
(CICA) in 1987 and is now developed by CaseWare IDEA.
IDEA is available in 16 languages and distributed in over 90
countries. Originally created by auditors for auditors, IDEA is
user-friendly with an intuitive user interface. IDEA has been
distributed in the U.S. by Audimation Services, Inc since 1992
and is located in Houston, Texas.
3
Who Uses IDEA?
Big 4
More than 80% of Top 100 CPA Firms in U.S.
Fortune 500 Companies
Government Agencies - Federal, State & Local (including
universities)
More than 150,000 Companies Globally
The IDEA Process

Let’s Get Started!
Stages of Using IDEA
Consider Audit Objectives
Determine How IDEA is Appropriate for the Audit
Specify the Data Required
Arrange Download of the Data
Utilize IDEA
Review and Housekeeping
Create a Project Folder
IDEA facilitates organization of your work through Managed
Projects.
Before doing so, be sure to copy the data files from CD (or
network) into the Source Files folder in the Library for this
project.
Example –
The following data files have been provided with our Version
Nine Workbook:
ACCPAY2012.TXT – Accounts Payable History File
SUPPLIER.XLS – Authorized Suppliers Excel worksheet
Copy and paste, or drag and drop into the Source Files folder
for importing efficiency.

Create a Project Folder (cont.)
After starting IDEA, you are able to create your project with the
following procedure:
On the Home tab, in the Projects group, click Create.
When the Create Project dialog box appears, type the name of
your project (for this instance: Accounts Payables) in the
Managed project section next to Project name and click OK.
The newly created project will remain active until the Project
Folder is changed.
Importing the Data Files
To import the files for testing, access the Import Assistant by
clicking Desktop button in the Import section of the menu
ribbon.
Once loaded, the Import Assistant guides you through the
process of importing the data.

For efficiency, add the needed data files to the Source Files
folder in the Library prior to importing. To achieve this, right-
click on the Source Fields.
Text Example –
To import ACCPAY2012.TXT (an ASCII Delimited file), select
Text and click Browse button to navigate to and select the file
from the Project Folder.
Click Open on the Select File dialog box.
Click Next.
Once the data file has been selected, the Import Assistant will
try to determine the details of the file format.
Importing the Data Files (cont.)
For Text Files Only –
The Field Type will default to what the data seems to be most
like, in this case Delimited.
The Import Assistant will try to determine the field separators
and text encapsulators (if any) for the file as well as if there are
any header lines to ignore. For this file, accept the default and
click Next to proceed.

The Import Assistant – Field Details screen will be displayed.
This is used to define each field’s name and details in turn,
identifying which fields or areas should not be included.
Before the import is finished, select the Generate Field
Statistics and name the Database Accounts Payables.
Use this box to complete the Field Headings
Field NameTypeDecimalDate
MaskDescriptionSUPPNOCSupplier
NumberPAYEECPayeeINVOICECInvoice
NumberINV_DATEDYYYYMMDDInvoice
DateAMOUNTN2AmountNOT USEDCNot
UsedCHECKN0Check
NumberPAY_DATEDYYYYMMDDPayment
DateAUTHCPayment Authorization Initials
Excel Example –
Import the SUPPLIER.XLS file provided on the CD with the
Version Nine Workbook.
Select in the Import section of the Home tab
Select Microsoft Excel and click the Browse button to navigate
to and select the file.
Click Open.
Click Next.
The Import Assistant will display a preview of the data and a
list of any worksheets defined within the file. Select the
Address worksheet in the Select sheets to import box.
Select the First row is field names option. In the Output file
name box, delete the default name and enter Authorized
Supplier.

7. Click OK.
Stratification
Stratifying the Data
Objective – Gain a profile of the number and value of payments
by numeric bands to identify any unusual trends and to
determine the high-value amount for extractions.
Exercise:
Select the Accounts Payable database as the active database.
On the Analysis tab, in the Categorize group, click
Stratification.
In the Fields to stratify, select AMOUNT.
In the Fields to total on box, select AMOUNT.

Confirm the increment is set to $10,000 (this may be changed
when required).
Click the first row of the spreadsheet area which will fill with 0
- 10,000. Click and drag down to row 10. The bands will
automatically fill with the increment.
Change the increment to $50,000 and complete the final 2 bands
(Upper Limit 200,000).
Do not check the Create Database option.
Click OK.
The results of the Stratification are displayed in a new
Stratification Results output of the Database window.
Stratification (cont.)
Stratifying the Data
Objective – Gain a profile of the number and value of payments
by numeric bands to identify any unusual trends and to
determine the high-value amount for extractions.

11. To preview the Stratification report, go to Print in the File
tab and select the desired option.
Stratification (cont.)
Performing a Record Extraction
Objective – To identify all high value items for testing and to
identify items which do not appear to match the profile for
payments.
Exercise:
Select the Accounts Payable database as the active database
with the Data property selected in the Properties window.
Select Direct, in the Extract group, on the Analysis tab. The
Direct Extraction dialog box appears.
Enter Unusual and High Payments as the file name.
Click the Equation Editor button. In the Equation Editor,
enter the equation: AMOUNT >= 70000 .AND.
AMOUNT < 80000 .OR. AMOUNT > 100000
Then select the Validate and exit button.

Direct Extraction
If you get a syntax error, check your equation and make sure it
was entered properly.
In the Records to extract area, accept the default selection for
the All option to extract the records from the whole database.
Click OK to run the extraction.
Results: There should be 87 records totaling $6,850,932.26
*There are a number of large value, round sum payments for
Supplier M100. Note the different variants of the payee name,
especially the occurrence of “Cash” within the name.
Many of the payments were authorized by HMV. However, on
further investigation it is determined that HMV may only
authorize payments up to $20,000.
Further analysis can be done to hone in closer on anomalies.
Direct Extraction (cont.)
What is Benford’s Law?
Frank Benford was a physicist at GE Research Laboratories in
the 1920’s. He noted that the first parts of the log table books
were more worn than the back parts. The first pages contain
logs of numbers with low first digits. The first digit is the left-

most digit in a number.
Benford collected data from 20 lists of numbers totaling 20,229
observations. He found that the first digit of 1 occurred 31
percent of the time. Using integral calculus, he calculated the
expected digit frequencies that are now known as “Benford’s
Law.”
The Benford’s task in IDEA can provide a valuable
reasonableness test for large data sets. IDEA only tests items
with numbers over 10.00. Number sets with less than 4-digits
tend to have more skewed distributions and do not conform as
well to Benford’s Law. Positive and negative numbers are
analyzed separately. This is due to the fact that abnormal
behavior patterns for positive numbers are very different from
those for negative numbers.
Benford’s Law
Data-Based Conditions for Benford’s Law:
The data supply is based on a geometrical series (thus, that it is
presented as Benford Set). In reality this condition is rarely
met. Experience shows however, that data must only partially
meet this condition, i.e., the constant increase, percentage-wise
of an element compared to the predecessor must only be
partially met. Otherwise, this would mean that no number may
occur twice which is quite improbably in the case of business
data supplies. However, the pre-condition is that there is at
least a ‘geometrical tendency’. Therefore, we use the Benford’s
Law task to identify unusual transactions.
The data must describe the same phenomenon.
The data must not be limited by artificial minima and maxima.

The data must not consist of numbers following a pre-defined
system, such as account numbers, telephone numbers and social
security numbers. Basically, data complies best with Benford’s
Law if it meets the rules mentioned above, namely that the data
consists of large numbers with up to 4 digits and the analysis is
based on a sufficiently large data supply. A large data supply is
necessary in order to come as close to the expected numerical
frequencies as possible.
If the data supply has, or just roughly has, the characteristics
mentioned above it can be analyzed based on Benford’s Law. In
the practical use, the expected frequencies according to
Benford’s Law often represent nothing more than a benchmark
for the observed frequencies. Therefore, since the observed
frequencies will only be compared with the legality discovered
by Benford, not interpreted accordingly, it is not necessary that
all conditions mentioned above be met.
Benford’s Law (cont.)
Objective – To perform a digital analysis of the amount field of
the Accounts Payable database using the Benford’s Law task.
Exercise:
On the Analysis tab, in the Explore group,
click Benford’s Law.
In the Benford’s Law dialog box, select the
Amount field as the field to be analyzed. Accept
the other default options to include Values that
are positive and Show boundaries . Unclick the
option for Mean absolute deviation and unselect
the last three Analysis Types (selecting First digit,
First two digits, First three digits and Second digit).
Leave the Suspicious option selected.

Click OK to perform the analyses. The Benford First Digit
results in graph form becomes active. The other three test
results can be accessed from the taskbar.
The data for the four test results can be accessed via the File
Explorer window. To view the results in graph form again,
open the Accounts Payable database and select Benford in the
Results area of the Properties window.
The graphic results for the Benford Suspicious First Two Digits
test are shown on the First Two Digits test results graph.
Analysis:
The First Two Digit test is performed to find anomalies in the
data that are not readily apparent from either the First Digit test
or the Second Digit test when viewed on their own. A spike
occurs where the actual proportion exceeds the expected
proportion as predicted by Benford’s Law. Positive spikes
(above the Benford’s curve) represent excessive duplication.
One of the objectives of this test is to look for spikes that
conform to internal thresholds such as authorization limits.

Look at the transactions that comprise the 79 two-digit
combinations (indicated as highly suspicious) by double-
clicking on the graph and selecting Display Suspicious Records
to drill down to the transactions. Notice the number of
transactions just under the $80,000 approval limit.
Of the 22 transactions that make up the 79 two-digit
combination, 17 are between 79,000 and $80,000. Each of the
payables clerks authorized some of the 17 transactions, but
HMV was responsible for the bulk of these transactions having
authorized 9 out of 187.
Analysis (cont.)
Of the 16 transactions that make up the 76 two-digit
combination, 10 are between 76,000 and 77,000. Of these 10
transactions, HMV authorized 7 transactions.
Of the 15 transactions in the 75 two-digit combination, 13 are
between 75,000 and 76,000. Like before HMV authorized 6 of
the 13 transactions. In addition, there are 5 transactions for
exactly 75,000. Out of these 5 transactions, 4 were payments to
companies with “Cash” in the payee name. Each of these 4
transactions were paid within a few days of their invoice date,
clearly a violation of company policy.
Because of the size of this data set (under 10,000 records), a
number of transactions were identified for further investigation
using just the First Digit and First Two Digit analysis. In larger
data sets, a fine filter of transactions is necessary (i.e. the First
Three Digits test).

Objective – To test for duplicate payments.
Exercise:
Open the Accounts Payable database.
On the Analysis tab, in the Explore group, click the Duplicate
Key drop-down arrow, click Detection.
Leave the Output Duplicate Records option selected.
In the File name box, enter Duplicate Payments.
Click Key. In the Field column, select SUPPNO – Ascending
and AMOUNT – Descending.
Duplicate Key Detection
6. Click OK in the Define Key box to return to the Duplicate
Key Detection dialog box.
7. Click OK in the Duplicate Key Detection dialog box to run
the task.
8. View the resultant database of duplicate payments.

Duplicate Key Detection
Results:
3 payments of 75,000 to supplier M100
2 payments of $145.50 to supplier P007
Note: Although the supplier number and amount are the same,
other information in the record is different. These will all
require follow-up to determine whether or not they are genuine
duplicates. In particular, note the different invoice number
patterns and all payments to supplier M100 are made within a
few days of the invoice date.
Additional tests includes testing for:
Duplicate supplier invoice number (i.e. test for the same
supplier number and invoice number)
9. Close the Duplicate Payments database.
Duplicate Key Detection (cont.)
Objective: To test for suppliers with multiple payee names.
Exercise:
Open the Accounts Payable database.
On the Analysis tab, in the Explore group,
click the Duplicate Key drop-down arrow, click
Exclusion.
In the Duplicate Key Exclusion dialog box,
enter the following settings:
Fields to Match: SUPPNO

Field that must be different: PAYEE
File name: Suppno Multiple Payees
Click OK to perform the test.
Duplicate Key Exclusion
Results:
There are 120 records where the same supplier number has
different payee names. These records total $4,524,529.75.
Close the Suppno Multiple Payees database.
Duplicate Key Exclusion (cont.)
Objective: To test for completeness by testing for missing items
in a numeric list.
Exercise:
Ensure the Accounts Payable database is the active database and
the Data property is selected in the Properties window.

To check the field type for the CHECK field, view the format of
the database by double-clicking on the data to open the Field
Manipulation dialog box.
View the format of the CHECK field and note that its type is
Numeric. Close the Field Manipulation dialog box by clicking
Cancel. Note: It is possible to test for gaps in Numeric or Date
fields or in a numeric sequence within a Character field.
On the Analysis tab, in the Explore group, click Gap Detection.
From the Field to use drop-down list, select CHECK to test for
gaps. Note: It is possible, but do not specify a Criteria for the
test (i.e. only checks issued for a date range).
Test the whole range of check numbers by accepting the default
selection of the ALL option. Note: The value in the Starting
key value and Ending key value boxes are provided from the
minimum and maximum valued held in the Field Statistics.
Accept the Gap Increment of 1 but note that this could be
changed if required.
Click OK.
Gap Detection

9. The Gap Detection Results output of the Database window
becomes active and displays the results. To view the missing
checks, click on the + sign located on the left side of the check
sequence.
Results:
There are 2 gaps in the sequence. However there are 5 missing
checks as can be seen from the inclusive ranges, i.e., 701805,
701997, 701998, 701999, 701200.
Gap Detection (cont.)
Objective: To analyze payment terms and ensure that company
policy on payment is being strictly adhered to.
Exercise:
It is suspected that certain suppliers are rewarding staff for
prompt payment of invoices. The number of days between
payment and invoice will be calculated and then analyzed.
On the Data tab, in the Fields group, click Append.
The Append Field dialog box opens up. Define the field as
follows:
Field Name: PAY_DAYS
Field Type: Virtual Numeric
Field Length: Do not enter

Decimals: 0
Description: Number of days to pay invoice
Appending a Field
Click in the Parameter cell to load the Equation Editor and enter
the following equation: @Age(PAY_DATE, INV_DATE).
Note: @Age(PAY_DATE, INV_DATE) calculates the number of
days between the specified dates (fields or date constants).
Enter the later date first to report a positive number of days as a
difference.
Click the Validate and Exit button, returning to the Field
Manipulation dialog box.
Click OK to append the Virtual field.
Appending a Field (cont.)
View the results in the new DAYS_TO_PAY field. It will be
the right-most column in the database. Note the color of this
field indicates that the field is a calculated field and not an

original imported field.
Click the Field Statistics link in the Properties window to view
the statistics for DAYS_TO_PAY field. When prompted,
calculate the statistics for all fields.
Note: The company’s policy is to pay all suppliers within 25-35
days of receipt of the invoice.
Appending a Field (cont.)
Return to the database by clicking the Data link in the
Properties window.
Objective: To test the validity of payments to authorized
suppliers.
Exercise:
Step 1: Verify a Common Key
Double-click over the Database window to open the Field
Manipulation dialog box and to display the field layout. Note
that the field SUPPNO is a Character field.

Click Cancel.
Joining Databases
Open the Authorized Supplier-Address database.
Double-click over the Database window to open the Field
Manipulation dialog box and to display the field layout. Note
that the field SUPPNO is a Character field.
Click Cancel.
Joining Databases (cont.)
Step 2: Join the Databases
Make the Accounts Payable database the active database.
On the Analysis tab, in the Relate group, click Join. The Join

Databases dialog box appears with Accounts Payable as the
primary database.
Click Select to select the secondary database. Select the
Authorized Supplier-Address database and then click OK.
Change the File name in the lower section of the Join Databases
dialog box to Supplier Verification.
Specify the common match key by clicking on Match to display
the Match Key Fields dialog box.
Click the Primary text box and select SUPPNO from the list of
fields. Note the Order text box and accept the default,
Ascending. Click the Secondary text box and select SUPPNO
from the list of fields. Click OK.
There are 5 join options at the bottom of the screen. Select the
option: All records in primary file.
Note: All records in Primary file is selected:
There are multiple payments for each supplier.
The risk is that payments are to unauthorized suppliers so we
are not interested in suppliers with no payments (the All records
in both files option).

8. Click the OK button to join the selected databases. View the
resultant database.
9. Click the History link in the Properties window, and then
locate and expand the section for Join Databases task.
Results:
Note that there are 999 records in the file and that there are 8
Unmatched Primary record – these are payments to unauthorized
suppliers.
Objective: To analyze payments by supplier to identify large
movements.
Exercise:
Ensure the Supplier Verification database is the active database.
On the Analysis tab, in the Categorize group, click
Summarization.
In the Summarization dialog box, select SUPPNO on Fields to

summarize.
Under Numeric fields to total, select AMOUNT.
Click on Fields and select the following fields: PAYEE,
SUPPNAME, TOT_PREV_YR. Click OK.
Summarization
Name the file Payments by Supplier.
There should be 48 records totaling $34,145,300.89.

Summarization (cont.)
To create a database where the total payments have increased or
decreased by over 25% during the past year, click on the
Criteria link in the Properties Window.
In the Equation Editor, use the following formula:
@Abs(AMOUNT_SUM – TOT_PREV_YR) * 100/
TOT_PREV_YR > 25)
Note: @Abs ignores the negative sign; therefore, @Abs
(expression) > 25 will identify both increase and decrease
greater than 25%.
Summarization (cont.)
Objective – To view the History maintained by IDEA to check

what has been done.
Exercise:
In the Properties window, click History.
Expand out and examine each section of the History log.
Can save the History log to a text file by clicking Export on the
taskbar.
The History feature shows the actions taken to receive the
database results.
History and Project Overview
History & Project Overview
Project Overview is a graphical overview of the actions
performed within a Project Folder, including the creation,
deletion and modification of databases. Project Overview
records all database interactions and shows the complete history
of what transpired within the Project Folder. A table view
format is also available.

To access Project Overview:
On the Home tab, in the Projects group, click on Project
Overview.
Have the ability to Export and Print Project Overview from the
taskbar.
This concludes the Introduction to IDEA for Academics.
The information included in this presentation was taken from
the IDEA Workbook.
For more information, please contact Audimation Services to
speak to someone with the IDEA Academic Partnership at:
[email protected] or 888-641-2800 opt 5
IDEA Problem 9
There is technical assistance available for the educational
version of IDEA, please contact technical support: 1-888-641-
2800 Option#4 or email the help desk at [email protected]
You should have the IDEA software and IDEA Manual loaded
into your computer from Auditing 1. You may want to review
the video called "IDEA 10 Tutorial: Introduction" to get started.
Review the samples in the IDEA Manual, Section 3-Accounts
Payable to end of this section this week. NOTE :the page
numbers will vary depending on the manual you are using due
to operating system differences in your computers.
Hint: Staying actively involved while reviewing the tutorial
assignment will help you to complete the IDEA problems more

efficiently.
Please submit your answers to the following problems to your
instructor in a Word document. You may need to take a screen
shot of your results and copy them into the Word document to
upload if asked to perform any analysis using the software
Problem 9a
Open the Sample-Payments file. This file was automatically
loaded in when you installed the software in week 1.
The company has a policy that all cash disbursements be
authorized. You want to quickly find all of the payments in this
database that were not authorized. Hint: Double click the field
name for AUTH to quickly sort by authorizations. Print screen
the results to submit in with your answers for this problem.
· How many disbursements were not authorized?
· What are the risks of unauthorized cash disbursements?
Clear the Criteria
Problem 9b
Using the same Sample-Payments file, determine if all payments
were made in 2015. Hint: You can use the extraction technique
on PAY_DATE. (From the Analysis tab, in the Extract group,
click Direct). Review the video called "IDEA 10 Direct
Extraction" Print screen the results to submit in with your
answers for this problem.
· How many payments were NOT made in 2015?
· Do you see anything odd about this payment? What steps

would you take to investigate?
Print screen the history file.
Close this file
IDEA Problem 10
There is technical assistance available for the educational
version of IDEA, please contact technical support: 1-888-641-
2800 Option#4 or email the help desk at [email protected]
Review the samples in the IDEA Manual, Section 2-Accounts
Receivable to end of this section this week. NOTE:the page
numbers will vary depending on the manual you are using due
to operating system differences in your computers.
Hint: Staying actively involved while reviewing the tutorial
assignment will help you to complete the IDEA problems more
efficiently.
Please submit your answers to the following problems to your
instructor in a Word document. You may need to take a screen
shot of your results and copy them into the Word document to
upload if asked to perform any analysis using the software
Open the file called Sample-Detailed Sales.
Problem 10a
One aspect of gathering evidence is obtaining copies of
invoices. IDEA is useful for testing completeness and finding
gaps in invoice numbers. With the Sample-Detailed Sales file
open on the Analysis tab, select Gap Detection to open the Gap
Detection window. Review the video called "IDEA 10: Gap

Detection". Make sure INV_NO is selected and click ok. Print
screen the results to submit in with your answers for this
problem.
· How many gaps are there within the invoice numbers for the
database?
· What control procedures should be put into place in order to
prevent gaps?
Close the file
Problem 10b
Open the file called Sample-Detailed Sales.
Another aspect of gathering evidence is making sure the data is
accurate. IDEA is useful for testing duplicate invoices. With the
Sample-Detailed Sales file open on the Analysis tab, select
Duplicate Key and select Detection to open the Duplicate Key
Detection window. Review the video called "IDEA 10 Finding
Duplicates". Select Output duplicate records with key of
Inv_No. .Print screen the results to submit in with your answers
for this problem.
· How many duplicates are there within the invoice numbers for
the database?
· What control procedures should be put into place in order to
prevent duplicate invoices?
Print screen your results to submit. Print screen the history file.
Close the file.
---------------------------------------------------------------------------
------------------------------------------
Submit your answers to Problems 9 and 10 in the same Word

document. Be sure to label your answers clearly with the
problem numbers and clearly identify the print screens of your
results. Be sure to include the history files for both problems 9
and 10 as indicated.
Adapted from: McGraw Hill Companies, In 2016 IDEA S-1
Solution
s Manual, IDEA Assignments

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