IDEA Fundamentals Workshop OUTLINE - ACUA · IDEA Fundamentals Workshop OUTLINE SESSION 1:...

IDEA Fundamentals Workshop OUTLINE

SESSION 1: Introduction to IDEA 1SESSION 2: IDEA Resources At Your Fingertips 3SESSION 3: Creating a Managed Project 6

SESSION 4: Acquiring Data for Import 10SESSION 5: Importing a Microsoft Excel File 12

SESSION 6: Reconciliation Principles – FieldStatistics 15• Set IDEA Options• Save View of Entries on Weekends & before/after 6 am/pm

SESSION 7: General Ledger Tests 21

• Non-balancing journal entries

• Missing Journal Entries

• Selecting Large Debit Items

SESSION 8: Account Receivables 30• Balances over Credit Limit – Join Files

• Aging Feature

• Credit Balances

SESSION 9: Vendor Master File 38• Top Five Vendors

• Vendor Payments sent to Post Office Box

SESSION 10: Account Payables / Payroll 39• Duplicate Payments: Split Invoices to Stay within Approval Level• Payroll

SESSION 11: Reporting Tools 41• Stratification

• Pivot Table

SESSION 12: Cross Match Employee in Vendor Master File 46SESSION 13: Automated File Documentation 48

• History

• Project Overview

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IDEA Fundamentals Workshop

SESSION 1: INTRODUCTION

SESSION 1

Welcome to the IDEA Fundamentals Workshop. The exercises in this workbookareintended as an introduction for new users and a refresher for existing users.

Day of EventPlease find a seat with an electrical outlet and a good view of the presentationscreen.To receive NASBA CPE credit you will need to sign in on the Attendance Sheet,staythrough-out the class and complete the Presentation Evaluation sheet. To be sureyou are ready to go, open IDEA and switch to the Samples project. Open 3 files onyour desktop. If you need help or any of the screens grayout please let the instructorknowimmediately.

Additional Learning ResourcesThere is extensive online help available for all modules, including step-by step walk-throughs of tasks. You may also visit the Audimation and CaseWare Analyticswebsitefor additional information, recorded videos, tips and hints, frequently asked questions(FAQs), and a section to register online for more learning events. Also, as a supporteduser you have access to our live help desk by calling 1-888-641-2800option 4.

IDEA OverviewIDEA combines considerable analysis power with an extremely user-friendlyWindowsenvironment. This versatile tool is useful for any type of file interrogation and allowsusers to exceed the limitations of most generic software suites. IDEA is not a data inputtool and therefore, the analyst is prevented from intentionally or accidently changing theclients copy provided data files. The ability to create electronic working papersisavailable allowing the auditor to append data fields for audit use. All clientdatasuccessfully imported into IDEA will appear as if the data was pulled from onedatabase and will have an extension of .IMD.

IDEA will automatically generate a complete history that documents the analysisandprovides the means to make the task repeatable.

IDEA has built-in @Functions for arithmetic, text, time, and date criteria, includingfinancial @Functions. These @Functions perform operations such as date,arithmetic,financial and statistical calculations, and text searches. A scripting tool is included,IDEAScript, that will allow the user to make analysis routines repeatable. This topic isfor advanced users and therefore not included in this workshop.

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SESSION 1 IDEA FundamentalsWorkshop

Desktop ProjectsThese projects are stored either locally, on your computer, or on a sharednetworklocation. If Desktop projects are stored on a network drive, you must have permission towrite to the network drive.

When you first launch IDEA, you have access to two default Managed projects:Samples and Tutorial. The Samples and Tutorial projects contain all the files requiredto complete the exercises in these guides: the IDEA Tutorial, Report Reader Tutorial,and the Advanced Statistical Methods Case Study. IDEA Resources: Loaded on yourcomputer with the installation of IDEA

• Samples & Tutorials: The tutorials are on the C: drive under Program Files (x86)• CaseWare IDEAIDEADocuments folder

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IDEA FundamentalsWorkshop SESSION 2

SESSION 2: IDEA RESOURCES AT YOUR FINGERTIPS

We offer a variety of resources to help you become more familiar with IDEA.Visit our website regularly for updates to our community resources inaddition to new Training and Events

• Audimation Services Website (https://www.audimation.com/resources)

• Articles, Tech Tips, Case Studies

• Free IDEA On-Demand Videos

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• IDEA Help Desk for Supported Users: Our experts are available to help yousave time and effort. If it takes you more than 20 minutes to utilize any IDEAfunction or feature, contact us for assistance. We're here to helpyou!

[email protected] x47:00 AM - 7:00 PM (CST) M-F

• Self-Study & Tutorials▪ IDEA Workbook: In-depth tutorial applying IDEA tests and analyses

to audits and investigations in accounts receivable, accountspayable/fraud investigation and inventory. The IDEA tests andanalyses increase in complexity, building on the experience learnedinearlier sections. ($225)

▪ Case Study: The Case Study is a three-part download-readydocument with sample data files. Part I is a basic introduction toIDEA. Part II includes more advanced exercises incorporatingwhatwas learned in Part I. Part III requires students to plan an inventoryaudit program and use IDEA to examine an inventory file.

• IDEA Groups: Professionals Connected to Share Best Practices▪ IDEA User Groups (IUG) - IUGs are independent communities of

CaseWare IDEA® users, partners and experts who meet to shareacommon goal: To get more out of IDEA.

▪ Virtual User Group (VUG) - VUGs are webcasts held quarterly,presented by IDEA users for IDEA users. This series allows you tolearn best practices from using IDEA, all without having to leave theoffice!

Each video covers industry-specific applications of IDEA.

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• Training & Events: Our new website allows you to search for any event!

• IDEA Passport: Access to expert and community help.

• CaseWare Passport Support Site (https://support.casewareanalytics.com)o You will need to establish a password as a supported user. Everyone

on your staff can have their own ID and password. Note: this pagewillalso take you to the Auditnet program.

• AuditNet Website (https://www.auditnet.org)

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SESSION 3: CREATING A MANAGED PROJECT

SESSION OBJECTIVES Create a project folder

Determine where the best location to save your audit work: internalharddrive or external USB, network or server

Set your project properties for user identifiable information placed onaudit work sent to a shared printer

Add course data files to your new managed project folder

IDEA StartCourse data files are in a folder called Data Analytics Workshop on the jump drive. Youcan copy to your computer’s hard drive by accessing it through My Computer or WindowsExplorer.

Loading IDEAClick the Start button.Select Programs.Select IDEA.

Or, double-click the IDEA button on the desktop.

Setting up a “managed” externalproject:

1. On the Home tab, select the Create button.

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If you are going to use the internal hard drive on your computer, insert a project nameinthe Managed Project. If you would prefer to use the USB provided navigate to theempty folder created on your USB provided with this course. Regardless of whichoption you use Managed or External, they are both “managed”.

Once you have determined which project type is right for you, click ok. This action willcause IDEA to create an empty set of project folders to be used on this project:

In IDEA, a Library is a repository of files. Each Library in IDEAcontains Library groups inwhich you can organize the files associated to the project. Whena project is created,IDEA creates Library sub-folders that let you organize all associated project files. TheLibrary window in IDEA displays these sub-folders as system Library groups and lists thefiles contained in the groups. The groups in the Library are CustomFunctions,Equations, Exports, Import Definitions, Macros, Other, Results, Source Files andVisualization. The last library group, Visualization, is new to version ten.

For each file in the Library, you can view the file size and the date the file waslastmodified.

From the Library window, you can perform such actions as creating custom Librarygroups, deleting files, running macros, and copying files to another Library.

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2. On the Home tab, select the Projects Properties.

If files are sent to a printer you will be able to identify them by the Report Nameasshown below.

3. Add the course provided data files to your project. They are in a folder on theUSB drive provided under Attendee Data Files.A. Right click on Source Files on your Current Project Library.B. Click on Add File

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C. Navigate to your USB and open the Attendee Data Files folder.D. Select all of the files in the folder.E. Click “Open” at the bottom of the page to accept.

This will bring all of your client’s provided data into the management properties of IDEA.

There are three separate libraries available in IDEA:

• Corporate Library – is a repository of files on IDEA Server compiled byIDEAServer Team Leaders. The Corporate Library contains the standard system Librarygroups. Team Leaders can add files to these system Library groups or create newcustom Library groups. Users that are connected to IDEA Server can copy filesfrom the Corporate Library to their current Desktop project. Note: TheCorporateLibrary is only displayed if you are connected to IDEA Server.

• Local Library – is a repository of files on your local drive that you use to sharefiles with all your Desktop projects. The Local Library is always available whenyouaccess IDEA. The Local Library folder is created when you install IDEA and canbefound at C:\Users\YOURUSERID\Documents\My IDEA Documents.

• Current Project Library – displays the associated files for the active Desktopproject. If the Desktop project is linked to an IDEA Server project, the associatedserver files for the linked IDEA Server project are also displayed.

Note: During this course we will only use the Current Project Library set.

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SESSION 4: ACQUIRING DATA FOR IMPORT

Starting with version nine, IDEA introduced tools that will help you request from youraudit client the correct data fields necessary to be sure you effectively receive theright data the first time.

• Select SmartAnalyzer on the top browser row• Select Data Request• Select data for import• IDEA generates a word doc for export and editing• Note: Content “Help” feature

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• The generic Data Request form can be exported to word and customized tofit your audit test and client.

• The Data Request document will be stored in the Library folder labeled“Other”.

• As the marketplace grows, look for further updates.• Note: Always include a request for control totals from yourclient.

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SESSION 5: IMPORTING EXCEL FILESSESSION OBJECTIVES

Understand the rules for importing client copy of a Microsoft Excel File Import your first client Excel file – JE Detail.xlsx

In most cases your copy of the client’s Excel file will need to be formatted to provide aclean import into IDEA. Import Excel Rules:

1. Data to import is in table format such as a block of rows and columns withblank lines and columns removed

2. First row should be field names or data row and cannot start with anumber

3. Format all numeric columns with the required fixed number of decimal places4. Remove all blank lines, sub-total lines and totaled lines from the dataarea

(keep the client copy for validating accuracy of imported data)

If a Microsoft Excel file being imported has formatting applied to the data in the cells,when IDEA imports the data, it imports it with the applied formatting. For example, if thedata has six decimal places, and a custom format was created in Excel to round to twodecimal places, IDEA will only bring in two decimalplaces.

Example of a Properly FormattedSpreadsheet

Note: All of the Excel files used for this class have already been formatted to fit therules.

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Import the JE_Detail.xlsx file

By looking in your Library source files confirm the file you want to import is alreadyinyour managed project. In real practice you would have already modified the formatrules as indicated on the previous page.

1. Under the Home tab on the desktop select the Import Desktop.

2. Select the Microsoft Excel file to import JE_Detail.xlsx. – Click Open.

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3. After clicking Next in the Import Assistant Window, the Microsoft Excelscreenappears displaying a preview of the file. Accept the Output File Namegeneratedfor this course and click OK.

4. If your desktop looks like the image below, you have successfully imported theMicrosoft Excel file.

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IDEA Fundamentals Workshop SESSION 6

SESSION 6: RECONCILIATION PRINCIPLES

Before commencing testing, it is important that newly imported data is reconciled back tothe "client’s" system. Potential errors are: Requesting the wrong data; obtaining thewrong data (and/or at the wrong time); Errors on the extraction of the data from the hostsystem; Problems when transferring the data to PC or media; or, Errors when importingthe data, etc.

SESSION OBJECTIVES

Reconciliation Reports and Control Totals

IDEA Definitions

Learn how to adjust the data for the optimal IDEA Desktop view

Using Field Manipulation

Resolve any variances before you start detail testing.

Reconciliation Reports and ControlTotalsIt is important that reconciliation reports and control totals are requested alongwith thedata and that they are filed with the documentation from the download/import process.This process will help you determine if the client’s database administrator provided allofthe requested data files with the appropriateformat.

The data can be reconciled back to the client’s system byreviewing:• Numeric field totals• Record counts• A sample of records compared to a print from the host system

Review procedures are often compliance based, checking that documentation iscomplete and that reconciliations have been carried out.However, you should alsocheck the actual History from each interrogation.

You can check all of these in true auditing fashion on a printed (or electronic) copy ofthe History. The History can be printed or saved to a file which can be edited.

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SESSION 6 IDEA FundamentalsWorkshopIDEADefinitions:

• A field is a column of data.• A record is a row of data.• A working folder (version 10) is the windows folder where IDEA will save your

IDEA files. In version 10, there are multiple folders with a specific use, however, thesource files is where your client data should be stored and the file explorer viewshows your IDEA files.

• IDEA Properties Window is located on the right side of the display controlsways to view the data in the active middle of the display.

In the Database section of the Properties Window, every IDEA database has fivebasic selections.

• The Data selection shows all data contents in the IDEA file window.• The History selection contains the log of all tasks performed in a file.• The Field Statistics selection contains all the numeric and date field statistics for

the database.• The Control Total selection shows the net total of one specific field for

reconciliation purposes.• The Criteria selection opens the Equation Editor and allows you to enter display

criteria to filter out records.The Results output from IDEA is added to the database in the PropertiesWindowgenerated by the following tasks:

• Stratification• Summarization• Gap Detection• Aging• Pivot Table• Benford’s Law• Chart Data• Generate Random Numbers• Monetary Unit Sampling

The Indices area of the Properties Window lists all indices that have beengenerated in the active database. The current index is highlighted with acheckmark.

The Comments section in the Properties window allows you to write notes on thecurrent database.

Using Field Statistics, IDEA’s unique data mining utility, obtain the file sizesand control totals to confirm with the client that the data has been properlyextracted, transported and imported into IDEA.

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IDEA Desktop ViewObtain an optimal view of a data file open on the IDEA Desktop by using the push/pullpins on the sides of the desktop to consolidate space. Once pinned, the user can flyover the tab and resizeaccordingly.

Right clicking on the field names will reveal the “hide” field features. To releasehiddendata, just right click on any exposed field name and select “showall”.

Field ManipulationOpen the record layout to confirm all data fields were provided by the databaseadministrator by double left clicking in any occupied cell. This action will reveal theFieldManipulation dialog box. Using the Data Request document, check each data field toconfirm you received what you need to perform your audit tests. Notice that twoadditional columns came in with the JE Detail import. You cannot delete rows orcellsbut you can delete columns.

IDEA OptionsTo adjust your IDEA Options, Go to the FileOptionsSystem and make certainyour screen looks like this one on rows 4 and 5:

Be sure and click OK at the bottom of the screen to make the changeseffective.

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Field StatisticsUse the built-in data mining features available in Field Statistics to precisely confirm thedata agrees with the client source records.

Once you are satisfied that the correct data has been obtained and correctly imported,field work can begin.

Perform the following tasks:1. In the field manipulation, delete the two data elements not needed.

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2. In Field Statistics, notice the Net Value of Debits and Credits does notbalance–this is an out of balance data file.

3. Save records input on Sunday.

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4. Save records input before 6 am or after 6 pm.

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SESSION 7: GENERAL LEDGER / JOURNAL ENTRY TESTSSESSION OBJECTIVES

While performing the Reconciliation, we noticed the general ledger was outofbalance. Instead of just stopping the test right there, we are going to find thenon-balancing journal entries. We will use the summarization feature ofIDEAand append an auditor work field with a formula.

Gap detection to confirm all journal entries were provided. Re-run featureandbuilding electronic working papers by inserting editable fields.

Extract all journal entries with a debit amount equal to or greater than$100,000. Create a report that can be printed or included in themanagementletter.

Non-Balancing Journal EntryAll journal entries should balance to zero, and while many accounting packagesenforcethis, some do not. Often times a super user override may exist aswell.

This test will find any journal postings that do not balance. Notice that the journal entrydebits and credits are in separate data fields. To conduct this test they will be need tocombine into one field. You will also need to summarize the data as you have the lineitem detail for each journalentry.

Be sure your JE_Detail database.imd is the active data file on your desktop.1. Open Field Manipulation by double left clicking on any cell occupied onyour

desktop window.• Select Append.• Call the new field AMOUNT with 2 decimals as shown below.• Move your pointer to any place in the shaded area under Parameterand

row 12. Click to open the Equation Editor.

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• Enter formula of: DEBIT – CREDIT and check to make sure thesyntaxpasses by clicking on the Green Check box in the upper left hand sideasshown below. (pan to bottom to show record layout)

• When the field manipulation screen opens it should have the formula inthe Parameter field for row 12. Click on OK to push the change across thedatabase.

You can now move the new field Amount to be next to the debit and credit fields forvisual confirmation that your formula worked as designed. If you made a mistake in theformula, you can go back to the formula and make changes (as you selected VirtualNumeric for the field type).

2. The next step is to bring the journal entry detail to one record per journal entry(as we have the detail lines for every JE). We will need to runaSummarization on JE_NUM field total on amount. To bring up your audit tools,click on the Analysis tab. This is where most of the audit tools arelocated.• Select the Summarization function.

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• Check AMOUNT as the Numeric Field to Total. Rename thenewdatabase to Sum by JE. Click OK.

• You have created a “child database” that looks like:

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3. To pull out just the Journal Entries that do not equal 0, we will do aDirectExtraction. With Sum by JE as the active database, select DirectExtractionon the Analysis Tab.

• Enter a file name that uniquely identifies the content. Rename the FileNon-Balancing Journal Entries. For criteria, click on the calculator iconin row 1.

• Enter AMOUNT_SUM<>0 and check the syntax. If it passes, click on thegreen check mark, then click OK to run the formula across thedatabase.

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• Your results should look like this:

• Using IDEA’s built in data mining feature, you can click on the blueunderlined number in the NO_OF_RECS column to see anextractionpreview of the specific files that are out of balance.

• After you have completed this testing, right click in the database name toclose all databases.

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Missing Journal EntriesJournal entries are usually issued sequentially and given a unique, sequentialreference number. Should we find a gap or even a missing journal entry number, wewouldwant to collaborate with the client to be sure any missing journals can bedocumented.This is a one-step solution using IDEA Function Gap Detection. We will also coverthe option to run a report using the RE-RUNfunction.Be sure your JE_Detail database.imd is the active data file on your desktop.

1. Under the Analysis Tab, Select Gap Detection on JE_Number

2. Verify the Field to Use: JE_NO and accept the increment of 1 by clicking OK.

A result is generated to show the Journal Entries that are not accounted for.

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3. Now hit the Re-Run key on the left side of the analysis tab. This will bring up thelast dialog box we worked on.

4. This time, check the box to create a database output and name the child database“JE Gap Detection.” Click OK to run the gap detection across the database.

5. Go to the File Explorer Library and double click on the report you just ran.

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Significant (large dollar) journal items (on a line itembasis)Make sure JE detail Database is active and all results have been cleared in theProperties Window to ensure you are working with the proper data set.

1. Set a filter for a specific dollar threshold by right clicking within the Debitfield of the dataset and selecting “Display All Records Containing…”

2. Change the operator to > 100,000.00 to filter out Debit records thatare greater than $100,000.00

3. Save the output to file called large journal items greater than 100,000.00.4. Go back to the parent file and remove the filter. OR use the judgment

sampling method to Cntrl and left click in the record number field and use thesave as (selected) records to create a new file.

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Alternative approach, use the Judgementselection:For each record that you would like to place in a separate data file, mouse to therecordnumber of each item, hold the control key down and left click once. This will hi-light therecord. Move to the next record to be selected and do the same thing. When you haveselected all of the records you want, move your mouse pointer into the grayed outsection of one of the records and right click once. This will bring up the short cutkeys.Mouse down to the Save as Selected feature. Give your file a name and do not removethe check from the Save as Selected box.

Additional tests to consider with IDEA in the General Ledgerarea:• JE posted on a specific date• JE by user ID• Summary by account contributions• JE with rounded amounts• JE with amounts that end in 999• JE with specific comments• Summary by account number• JE by posted period and Journal Source• JE by period• Account balances by Journal Source• Account balances by period

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SESSION 8 IDEA Fundamentals Workshop

SESSION 8: ACCOUNTS RECEIVABLESESSION OBJECTIVES

Import Microsoft Excel Open_AR.xls spreadsheet with more than one tab (referto Session 5 – Importing Excel Files.

Join two data tables so all relevant data is in one file. To Join two files, a “primary field”must exist in each file. The primary field does

not have to have the same field name nor does it need to be the same widthsize. They must be the same data element type (numeric, character, date, time)

Use IDEA built in Data Mining feature Field Statistics

Join DatabasesIDEA provides a Join Databases option, which can be usedto:

• Combine fields from two databases into a single database for testing.Forexample, to carry out an inventory valuation, data is required from both theinventory master and pricing information files.

• Test for data which matches or does not match across systems. Forexample,match the monthly payroll transactions file with the payroll master file toensure there are no "ghost" employees, or that all terminated employeeshavebeen removed from the payroll.

Databases can be joined or matched if they contain a common link (referred to as the"key"), such as the employee number, if joining the payroll transactions andemployeemaster files. The common field(s) don’t need to have the same name, but they must beof identical field type. Use the change field type option, if necessary, to modify fieldtypes in order to allow IDEA to match fields.Customers Exceeding Credit Limit

We need to join the Credit Limit List with the database already summarized by invoiceand then do a direct extraction for customers with total open invoices greater than creditlimit. Small challenge: the primary fields do not match on data element type.

On the Home tab, select Desktop to import the multi-tab excel spreadsheet.

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Import Open_AR.xls.

Select both the Open_AR and Credit_Limit files and clickOK.

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Be sure both databases are open on your IDEA desktop. The Primary field common toboth files is the Customer Number. Notice that some customers have more than oneinvoice open. On the Analysis tab, clickSummarization.

• Summarize on Customer Number. Include SALESREP_NO in the field to outputand use SALES_PLUS_TAX as numeric fields to total. Create a database calledSum by Customer.

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Adjust the view to show the highestNO_OF_RECS.

With Open_AR – Credit Limit.IMD as the active database, go to the Analysis tabandselect the “Join” feature.

• Join Credit_limit.IMD (Primary Database) with Sum by Customer (SecondaryDatabase).

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• Change the file name to Open AR with Credit Limit and select fields to match.

• Select All records in primary file and click OK

• The final output should look like the following image.

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Using Open AR with Credit Limit.IMD as active database, click on the Analysis tabandfind the Direct Extraction option.

• Name the Direct Extraction Customers Exceeding Credit Limit and click onthe calculator to open the Equation Editor.

• Enter the following equation: SALES_PLUS_TAX_SUM > CREDIT_LIMIT

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• After you move the credit limit next to the Sales_Plus_Tax_sum,yourdatabase should look like this:

Age the Outstanding ReceivablesUse an IDEA function called AGING; and drill down to Customer Number by totalinvoices outstanding. It also identifies aged receivables that may indicate a differenceof goods or services with the customers or an indication of their inability to pay.1. ANALYSISAGE

2. Leave at default of 30 day interval3. AGE data is on 2009/01/01

A. INV_DATE is the Aging field to useB. SALES_PLUS_TAX is the Amount field to total

4. Select Generate Key Summary Database5. Select Key to set the key to CustNo (ascending)

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6. Ok – Open the report by going back to the parent & click on ResultAGING17. Then compare results to client’s aged report.

Credit BalancesCredit balances in the accounts receivable left for a long period of time can indicatemany problems. For example, it could indicate a high level of returns, which could indicatefaulty goods. If some of these have been sold it could have significant implicationselsewhere in the client’s business (e.g. having to refund their customers for faulty goodsordamage to customer goodwill).

It could also indicate poor controls over matching of payments/credit notes to invoices. Inaddition to individual transactions, supplier accounts with a debit balance total oftenwarrant further investigation.

APPROACHSet a filter to find balances less than or equal to 0.00 OR pull from field statistics.

SOLUTION1. Right click on the SALES_PLUS_TAX2. Set to <= 0 .003. 7 records should be returned; [noticeseveral in the first few days of the year]

ORa. Open Field Statisticsb. Under Sales_PLUS_TAX go to row # of negative recordsc. Use IDEA drill down and save that file

Using the Field Manipulation dialog box, create a quick working paper by inserting aMultistate tickmark field (-1 default state) and a comments field editable character (“ “default state).

Using the short cut keys (right click on any data field) Could also create a report formanagement review.

Additional tests to consider with IDEA in the Accounts Receivable area:• Debtors transaction summary• Transactions around a certain date• Duplicate Field Search

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SESSION 9: VENDOR MASTER FILESESSION OBJECTIVES

Using the top records feature Looking for specific information that may be difficult for a computer to readbut

easy for a human. Specifically, identifying PO Boxes that maybe changed toprevent detection.

Using Fuzzy Duplicate

Open Paid Fileimport excel Paid File.xls spreadsheet

Identify Top Five Vendors for the Year1. Top five vendors2. Sum by vendor name on invoice amount. Add all vendor fields to the output

Index by dollar amount sum3. Analyze top 5 vendors Invoice_amt_sum4. Make work paper Append tick mark Append comment.5. Create a report

Isolate All Payments made to a PO Box1. Simple Approach using the filter feature:

• VENDOR_ADDR = “PO Box”• Note: 30 vendors are set to receive payments to a PO Box

2. ISINI Approach: Avoid detection method• Go back to parent• Append new addr (vc) = @strip(@upper(vendor_addrs))• Append POBOX (vn) = @isini(“POBOX”, new_addrs)• Code = 1 is yes; 0 is no

Note his method detects 31 vendors

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SESSION 10: ACCOUNTS PAYABLE: DUPLICATE AND PAYROLLTESTINGSESSION OBJECTIVES

Append (make taller) two related filesUse the Duplicate key to identify duplicate records Improve efficiency by stacking direct extractions and creating results in one

pass through the database

Accounts payable are amounts owed to creditors for goods and/or services that arepurchased during the normal course of conducting business. AP can be significant andmaterial because of a high volume of transactions and the size of the balance whencompared to other items on the balance sheet. Completeness and cut-off are high riskareas. Because the recording is manual intensive accuracy is important and AP isgenerally regarded as a high risk of fraudarea.

Two options for searching for duplicate records.

1. Duplicate Key Detection - identifies all records where the field(s)selectedas the Key areidentical.

2. Duplicate Key Exclusion – same as Duplicate Key Detection, except thatan additional field is specified that must be different.

The Duplicate Key Detection option is used to identify duplicate items in a database.Duplicate Key Detection can be used to identify duplicates within a single field, such asduplicate invoice numbers, or duplicates in a combination of up to eight fields.

Duplicate Key Detection can also be used to identify non-duplicate keys (unique) byselecting the Output Records without Duplicates option instead of Output DuplicateRecords.

The Duplicate Key Exclusion option is used to identify duplicate items in a databasewhere a further specified field is different, such as duplicate purchase order numbers fordifferent suppliers.

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Split Invoices to Stay Within Authority Level

1. Open AP_Open.csv and AP_Paid.xlsx2. Append both files to create a single file with 994 records: note record layouts for

each file must match, name and type (change date fields to character)3. Summarize on VNDNUM – Criteria check_amt > 30004. Duplicate Key: VNDNUM & CHECK_amt with criteria check_amt >30005. Notice payments about one week apart

Payroll

You can run more than one direct extraction with one pass through the data file.Makecertain the Payroll_15april2016.xlsx is the open file and open the Direct Extractionfeature.

1. Create a Direct extraction called Net Pay greater than Gross Pay.a. Enter equation Net pay > Gross Pay.b. Check to see equation passes syntax errors.c. Return to Direct Extraction dialog

2. Create an extraction called Gross Pay = Net Pay (no withholdings).a. Enter equation Gross Pay = Net pay.b. Check to see equation passes syntax errors.c. Return to Equation Dialog box and hit ok

3. Create an extraction called Net Pay less than $0.00a. Enter equation Net Pay < 0.00b. Check to see equation passes syntax errors.c. Return to Direct Extraction and click on OK.d. The last file will be open on the desktop and the other two are in the File

Explorer.

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IDEAFundamentalsWorkshop SESSION 11

SESSION 11: REPORTING TOOLSSESSION OBJECTIVES

Import Access database file PCARD.xls Stratification Pivot Table

StratificationStratification is useful in classifying items in a database. Stratification allows you tocategorize records into bands. The most common stratification usage is togrouptransactions by numeric ranges or bands based on an amount field. The minimumoutput from the stratification is a Result, attached to the file, which may be printed.TheResult can include a chart of the results and drill-down capability. The Result mayalsobe saved in a number of formats, and be saved to disk or e-mailed as required.Alternatively, you can produce a stratified database with an option to include detailsofthe band range into which each record falls. The database can then be used for furtheranalysis.Stratifying a Numeric FieldIDEA allows you to stratify on numeric fields. The most common usage of the numericstratification feature in profiling data is the stratification of the amount field. Youcanquickly visualize the sales between $0 and $1000, $1000 and $2000, and soon.Stratifying a Date FieldIDEA allows you to stratify on date fields. IDEA permits you to define your bands bynumber of days, number of weeks, number of months, or number of years. For example,you can categorize your data by month. Date stratification also allows you to selectnumeric fields as totals. For each band, IDEA shows the number of records andindicates the total of the numeric field or fields chosen.Stratifying a Character FieldIDEA allows you to stratify on character fields. You can use this process tocategorizethe data by region if you have a zip code stored in a character field in your database.You can specify the first characters only and IDEA will place the record inthecorresponding stratum.The stratification process for each field type requires you to select one or morenumericfields to total on by stratification band. The maximum number of stratificationbandsallowed is 1,000.Optionally, for any field type stratification, you can specify a field to Group by. Thisfeature will create a separate Stratification Result for each unique value in the fieldselected. The maximum number of groups that can be displayed is 80. If there aremorethan 80, only the first 80 will be displayed.

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Stratifying a File by MCC BandsIf not already imported, import the pcard.xls. The next exercise consists of stratifyingthe Pcard-Database.imd database byMCC.

Select: AnalysisStratification from the menu. Once you have customized your

toolbar, you can also click the button on the toolbar to open the Stratificationwindow.

In the Stratification dialog box, enter:

a. The Field to Stratify is MCC

b. Field to total on is Amount

c. Change Create Result file name to Stratify MCC

d. Change Increment to 1,000

e. Left click in the Upper Limit for each Stratum field (up to 10,000)

f. Click on OK to run the Stratification

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A new Stratification Result is created. Notice the stratum number of records ishyper-linked to the underlying records.

Open up the chart created for this stratification. Take a moment to explore the results.You can create a data base, print to a printer, or export to Excel orPDF.

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Pivot Table

A Pivot Table is a useful tool for summarizing and profiling data. You can analyzeinformation from several different perspectives by quickly creating a table that containssummarized data. The Pivot Table also allows you to summarize combinations of manyfields and to place the fields in the Pivot Table as columns, rows or totals. When morethan two fields are in a column or a row, you can collapse and display the summary forthe value, or expand and display the details.

• Import the Banking.csv file.

• Append a new virtual numeric field called Month using @MONTH(DATE)as the parameter. The appended field will appear on the far right of yourdatabase. Select and move the field next to date. Once complete, your.IMD file should look like the image below.

1. To create a Pivot Table of vendors by month and by amount, selectPivotTable under the Analysis tab.

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a. Name the table Banking Pivot

b. Click and drag Acct_Num and Account Type to left edge

c. Move Month to top level

d. Insert Amount as the field to total

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SESSION 12: CROSS MATCH EMPLOYEE WITH VENDORMASTER

SESSION OBJECTIVE

Is There Common Information in the Customer Master and Employee MasterDataFiles?Most auditors and fraud examiners recommend cross-matching information from thecustomer master data to the employee master data. Depending on the nature of theorganization’s business and its operating procedures, there can be severallegitimate reasons for employees to be listed in the customer master files. However,there are also several potential fraud scenarios that have been associated with thisphenomena as well including redirection of product shipments and false refunds forvoidedsales.

Cross- matching street address information can be very problematic due tovariationsin punctuation and spelling as well as the use of abbreviations for parts of the streetaddress information.

Depending on the information available in the customer master data as well as theemployee master data, analysts should consider other cross-matchingopportunities.Analysts have had success cross-matching other information including tax ID numbers,customer phone numbers to employee primary and secondary phone numbers as wellas cross-matching addresses to other addresses in the employee data such as theaddresses of emergency contact persons.

@similarphrase Technique

Measures the similarity between two specified phrases or Character fields. A phrasecan be a character expression split by white space. A phrase can include multiplewords where the internal word sequence is not important. It returns the similaritydegree between the two phrases as a numeric value ranging between 0 and 1 with uptosix decimal places. A similarity degree of 0 indicates that the phrases arecompletelydifferent and a similarity degree of 1 indicates that they are identical. The higher thenumeric value of the similarity degree, the more similar the two strings are.

Two phrases are considered identical as long as they contain the same words. Asmentioned, @SimilarPhrase ignores the internal word sequence in each phrase;therefore, the sequence of the words can be different.

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1. Import source files in: Vendor Detail44.xls & Employee Detail44.xlsx2. Modify field names emp_addr and vend_addr3. Insert New_emp_addr field as VN & 0

@justnumbers (emp_addr + @left(zip, 5))[Note: Save the equation and reuse for step ]

4. Insert New_vend_addr as VN & 0; retrieve saved equation and modify tomatch@justnumbers (vend_addr + @left(zip,5))

5. Visual connect – vendor (left side) & employee (rightside)New_vend_addr to New_emp_addr

6. MATCHES only with name VISCON Vend and Emp [levenshtein gap]7. Append new field DISTANCE VN & 6

@similarphrase (vend_addr,emp_addr)8. Show new fuzzy logic field and index9. Move vend_addr next to emp_addr

10. Show exact matches and near misses

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SESSION 13: AUTOMATED FILE DOCUMENTATIONSESSION OBJECTIVES

Gain a deeper understanding of the level of file documentation by reviewing:History

Project Overview

History

As with any technique, you may make mistakes when using IDEA. Hence, make sureyou review your work. Review procedures are often compliance based, checking thatdocumentation is complete and that reconciliations have been carried out.However,you should also check the actual History from each interrogation. The most commonerrors are incorrect:

• Specified formulas

• Join Databases: Order with Primary and Secondary files

• Join Databases method used (there are five methods)

• Fields totaled on Summarization

• Order of Summarizations and Extractions

You can check all of these in true auditing fashion on a printed (or electronic) copyofthe History. The History can be printed or saved to a file which can be edited. Youcanalso add comments to your database throughComments.

Project Overview

Project Overview is a graphical overview of all the actions performed within a Desktopproject and/or IDEA Server project, including the creation, deletion, and modificationofdatabases. The Project Overview feature records all database interactions so that thereis a complete history of what transpired in the Desktop project and/or IDEA Serverproject. All actions performed at a task level are recorded in Project Overview.SeeProject Overview Limitations for more information. Project Overview information isdisplayed in either graphical or table format. When viewing the information in graphicalformat, you can create a Visual Script or IDEAScript macro by selecting requireddatabases and tasks. See Project Overview - CreateMacro.

Every time a task is completed on a database in the current Desktop projectand/orIDEA Server project, IDEA records the history to the History log as well as toProjectOverview. While a separate History log is created for each database, ProjectOverviewrecords all database interactions for all databases in the current Desktop project and/orIDEA Server project.

When a database is copied into the Desktop project or IDEA Server project, or

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accessed through another folder or directory, the historical information fromthesedatabases will not be added to Project Overview. Project Overview only records theactions that are performed on databases in or created in the Desktop project or IDEAServer project.

There are two methods of accessing ProjectOverview:

• On the Home tab, in the Projects group, click Project Overview.

• Right click a database name in the File Explorer window, and then selectFindDatabase in Project Overview.

The Project Overview information is stored in an SQL file calledProjectOverview.sdf.This file is created by IDEA in each project folder.

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