Audimation Services

Joanne Koonce-Hamar

Data Mining Defined

v.v.

Data mining is the analysis of data with the intent to discover gems of hidden information in the vast quantity of data that has been captured in the normal course of running the business.

Benefits of Using Software for Data Mining

Specifically designed for data analysis 100% coverage of available data Compare files from different sources and

formats Analyze raw data to increase

independence Quickly identify unusual or non-compliant

transactions Create an audit trail

Reasons to Overcome Roadblocks to Data Mining

IIA Professional Standards Red Book

1210.A2 – The IA should have sufficient knowledge to identify the indicators of fraud but is not expected to have the expertise of a person whose primary responsibility is detecting and investigating fraud.

1210.A3 – IA should have knowledge of key IT risks and controls and available technology-based audit techniques to perform their assigned work. However, not all IAs are expected to have the expertise of an IA whose primary responsibility is IT auditing.

1210.C1 – The CAE should decline the consulting engagement or obtain competent advice and assistance if the IA staff lacks the knowledge, skills, or other competencies needed to perform all or part of the engagement.

1220.A2 – In exercising due professional care the IA should consider the use of computer-assisted audit tools & other data analysis techniques.

Reasons to Overcome Roadblocks Cont.

ACFE Report to Nation

Main Areas for Data Analysis Software Use

Searchingfor Text

in MultipleFields

and Files

Testing for Completeness –

Gaps & Duplicates

Cross Matching Data

BetweenFiles/Systems

IdentifyingExceptional

Items

Checking Calculations

Analytical Review

IDEA®Data Analysis Software

Report MiningLow-Cost and High-Impact

USERS OF INFORMATION

OPERATIONAL DATA

Tools for Data Mining

Tools for Data Mining

Report Generators

Report Generators

High Manpower Low Manpower Low Manpower

Low Tech Cost Low Tech Cost High Tech Cost

Analyzing Data

Editable Fields

Uses for Editable Fields

Manual Information such as Comments

Create Adjustments to Booked Amounts or Dates

Tick Marks

Pre-Defined TestsUtilize pre-written audit tests to improve audit quality

and consistency – Smart Analyzer Complete includes A/R, A/P and General Ledger tests

For more information about IDEA Data Analysis Software

visit us on the web atwww.audimation.com

Presenter:Joanne Koonce-Hamar

joannek@audimation.com