idea 10 - auditware.co.uk · stratified random sampling is unique to idea and lets users take a...

IDEA 10.3Official Winter UK Release

James LoughlinHead of Training & Consultancy

AuditWare Systems Ltd

Agenda

• Welcome

• IDEA 10.3 UK Release – New Features and Enhancements

• SmartAnalyzer Apps & Tutorial

• Questions and Answers

• End

Good News – IDEA 10.3 is finally here…...

What’s New in IDEA 10.3

▪ Character Field Stats▪ Duplicate Key Detection in Visualization▪ Stratified Random Sampling▪ Python ▪ IDEAScript Commands and @Functions▪ Other Enhancements

Field Statistics (Prior to IDEA 10.3)

Field statistics is used to get statistics on Numeric, Time and Date fields in the current database.

There were 44 different Field Statistics.

Which for example, can be used to find:

1. Earliest and latest date in a Date field

2. Average of a Numeric field3. Transactions on days when

business is closed

New in IDEA 10.3 – Character Field Statistics

In IDEA 10.3, added the ability to generate field stats on Character fields

• Number of Blanks (NumBlanks): Number of records that contain blank (empty) values in the specified Character field

• Number of Categories (NumCategories): Number of unique categories for the specified Character

Character Field Stats allows users to find potential

Incomplete records

Anomalies (e.g., more categories than what is listed in product catalogue)

Deficiencies (e.g., transactions where there is no authorizer)

New in IDEA 10.3 – Character Field Statistics

Clicking on the count, drills-down into the data and results can be saved as their own databases to be used as audit findings. Summarizing on character fields can be labor intensive - now using Field Stats it's simple in IDEA 10.3.

New In IDEA 10.3 – Duplicate Key Detectionin Visualizations

Discover tool in Visualization will show you the first field it detects with duplicate items as part of the dashboard it builds for your data.


From the Field Statistics panel, drill-down to view the specific records.


You can further customise the dashboard to show information about other fields with duplicate keys or any other relevant field statistic.


Not all duplicates are audit issues.To find the potential issues, IDEA’s Discover uses its audit intelligence to evaluate your data and look for duplicates that are exceptions rather than the rule. For example, when looking at transaction data, invoice numbers should not be duplicated while you expect the sales

rep ID to repeat.

New in IDEA 10.3 – Chart ZoomingZoom in directly from the axis scroll bar or use your pointer to select an area within the chart to zoom into

Disproportionate Stratified Random SamplingStratified Random Sampling is unique to IDEA and lets users take a more informed audit sample that balances materiality with impartiality.

This feature saves time during the sampling process because it allows auditors to break transactions down into strata before selecting the sample, ensuring the sample is truly representative of the entire population, considers materiality requirements, and remains impartially selected.

New in IDEA 10.3 - Proportionate Stratified Random Sampling

In IDEA 10.3, auditors can specify the percentage of

records within each stratum, making the process more

effective when populations and file sizes vary greatly such as month to month sales data.

The actual percentage in the strata may change as IDEA will

snap to the closest whole number of records for the

sample size.

New in IDEA 10.3 – Python Integration

IDEA 10.3 (Desktop only) now includes a Python interpreter and key packages to let you leverage the power of this tool.

Users can extend the functionality of IDEA by building their own advanced analytics or using existing Python scripts.


• Python installed with IDEA 10.3• Python must be enabled on your computer (first time only)• Python environment is launched in the background (hidden)• IMPORTANT! Python scripts are in one of two locations:

▪ Python scripts used for @Python are in Custom Functions subfolder▪ Python scripts to run in Macros tab are in Macros subfolder

• Python scripts for @Python are built upon first load of database using them▪ If you change Python script used in @Python, you must Validate equation or close

and reopen database for changes to take effect▪ Regular Python scripts may need database or application re-opening

▪ Python scripts need two lines of code to recognize IDEA objects

New in IDEA 10.3 – Python Integration• To enable Python in IDEA 10.3 on your computer

▪ Check “Run Python scripts” box in Options, then agree to disclaimer


IDEA 10.3 Development Environment

IDEA’s COM Objects (DLLs)

IDEAScript

IDEA’s IDE(incl. debugger)

Python (3.5.3)

(no IDE)Python Package 1

Python Package 2Python Package 3

IDE of your choice(PyCharm, Visual Studio, Eclipse, etc.)

Python 3.5.3

Python Package 1

Python Package 2Python Package 3

IDEA

Pyth

onSt

arte

rPac

k.zip

(1) Build it, debug it, test it here (2) Final test, run, use it from IDEA


IDEA

IDE(PyCharm)

PAGE

<myscript>.py

<myscript>_dialog.tcl<myscript>_dialog_

_support.py

<myscript>_dialog.py

• Main script, run this one• Declare classes and globals• Check for errors, dependencies• Can be run from IDE or IDEA

• PAGE generates it initially

• Check for errors, dependencies• Can be run from IDE or IDEA


Augment your analysis by calling Python using @Python*.

*A working Python script with this name must exist in the Custom Functions Library group.

New in IDEA 10.3 - IDEAScript Commands &@Functions

RunPython Belonging to the Client object, this command lets IDEAScript call the Python script of your choice, after which it resumes processing in IDEAScript.

RunPythonEx Similar to RunPython, this command lets IDEAScript call the Python script of your choice with multiple parameters. It then resumes processing in IDEAScript.

StratifyOnBandWithPercent Similar to StratifyOnBand, this command lets IDEAScript specify the percentage of records to extract for each stratum.

NumCategories This is a new way for the FieldStats object to report the number of unique categories for a given Character field.

NumCategoriesOutputDB This command acts as a new way for the Database object to create an instant summarization database from the Character Field Stats of a database with field statistics.

NumBlanks This new command lets the FieldStats object report the number of cells with blanks for a given Character field.

@Python A new @Function, @Python lets auditors extend IDEA’s existing library of @Functions with their own creations written in Python. It is ideal for Virtual fields.

@FieldStatistics New FieldStatistics indices have been created: “110” for # of Blanks, “111” for # of Categories.

New in IDEA 10.3 – Other Items

• Windows Server 2016: IDEA and IDEA Server are now compatible.

• Microsoft SQL Server 2016: IDEA Server is now compatible.

• Citrix XenApp: 7.6 and 7.12 now supported for IDEA and IDEA Server.

• UTF-8: IDEA 10.3 automatically detects files with international characters encoded in UTF-8 format, and imports data correctly without the need to change the encoding of the source files before importing into IDEA. This simplifies the review of international data for users with operations around the world.

• Fuzzy Duplicate: Now supported on IDEA Server.

• Report Reader: We now support imports of PDF formats listed as PDF/A (objects within PDF). Users also now have the option to preserve as a text file when importing a PDF file to IDEA to save time in subsequent imports.

New in IDEA 10.3 – Other Items

• Improved Indexing Performance: IDEA’s processing engine has been upgraded, reducing processing time in many cases, depending on file size, data structure, the nature of data and the hardware being used.

• CaseWare Working Papers: IDEA can now send Results output to CaseWare Working Papers 2017

• Send to Excel: Now save Results outputs to the Results Library group. It will also support any locally installed spreadsheet software associated with the .XLS extension, not just Microsoft Office.

• SmartAnalyzer Enhancements: Many enhancements included in IDEA 10.3 (see What’s New document). Also with IDEA 10.3 and SmartAnalyzer App SDK 3.2, apps can be generated that are FIPS compliant.

IDEA 10.3 - Demonstration

IDEA 10.3 – Release Date

Available to purchase, or with a valid maintenance contract, download TODAY!!

SmartAnalyzer

What is SmartAnalyzer?

SmartAnalyzer is an easy-to-use reporting framework providing a comprehensive pool of predefined audit tests covering multiple audit areas. SmartAnalyzer is an integrated part ofIDEA and IDEA Server. It comes with every edition of IDEA version 10 and includes bydefault five sample audit tests.

SmartAnalyzer is a powerful tool, no matter if you are an experienced auditor or a firsttime user. Working with SmartAnalyzer you will benefit from the most efficient way torun a data analysis. Pre-defined and quality checked audit tests will help you to save timeas you do not have to define your own tests from scratch.

SmartAnalyzer Reporting Framework

SmartAnalyzer Marketplace

SmartAnalyzer Financials Apps

General Ledger

• Out of Balance Journal Entries• Duplicate Journal Entries• Missing Journal Entries• Journal Entries Posted on Weekends• Journal Entries Posted on Specific Dates• Journal Entries Posted at Specific Times• Journal Entries by User• Journal Entries by Period and Journal

Source• Journal Entries by Period• Journal Entries with Large Amounts• Journal Entries with Rounded Amounts• Journal Entries with Amounts that End in

999• Journal Entries with Specific Comments• Summary by Account Number• Summary by Account Combinations• Account Balances by Journal Source• Account Balances by Period

Accounts Receivable

• Aging by Due Date and Invoice Date• Debtors with Balances Greater than

Credit Limit• Debtors with Total Amount Greater

than Credit Limit• Debtors with Net Credit Balances• Debtor Transaction Summary• Transactions Around a Specified Date• AR Duplicate Field Search

Accounts Payable

• Aging by AP Invoice Date• Duplicate Invoices or Payments• Creditors with Net Debit Balances• Creditors with Total Invoice Amount

Greater than Approved Limit• Creditors with Balances Greater than

Approved Limit• Creditor Transaction Summary• Invoices without Purchase Order

Numbers• Transactions Around a Specified Date• Transactions Posted on Specified

Dates• Transactions Posted at Specified

Times• Transactions by User ID• AP Transactions Posted on Weekends• AP Transactions with Rounded

Amounts• AP Duplicate Field Search

SmartAnalyzer Financials Apps

Fixed Assets

• Fixed Assets Additions• Asset Category Summary• Recalculate Straight Line Depreciation• Recalculate Declining Balance Depreciation• Depreciation Exceeding Cost• Duplicate Field Search

Inventory

• Aging by Receipt Date and Ending• Inventory Balance• Aging by Receipt Date and Unit Cost• Recalculate Inventory Balance• Calculate Inventory Turnover Ratio• Calculate Unit Turnover Ratio• Zero or Negative Unit Cost• Negative Quantity on Hand• Inventory Location Summary• Large Inventory Amounts• Inventory Received Around Specified Date• Last Sales Price Lower than Unit Cost• Compare Sales Price with Unit Cost• Duplicate Field Search

SmartAnalyzer Risk-Based Payroll App

• Different employees, same bank information• Employees with missing bank information• Employees over mandatory retirement age• Duplicate tax ID information• Employees without PTO • Employees without benefits deductions • Low federal/national tax withholding • Payments after termination • Manual payroll cheques • Employees with high overtime pay • Unusual net pay • Analysis of unusual hourly rate changes • Analysis of unusual salary base pay changes

SmartAnalyzer – Other Specific AppsSAP P2P & O2C Process Mining Apps

The IDEA app Process Mining P2P & O2C uses the process mining technology to dissect and analye the purchase-to-pay activities of a company. Purchase-to-pay processes are examined, reconstructed and visualized on the basis of SAP® data to make the actual processes as transparent as possible.

IDEA Banking Apps for Banks and other Financial Institutions:

Account Activity Manager

CaseWare Analytics’ Account Activity Manager provides an easy way to automatically detect errors and possible fraud schemes involved with deposit accounts. The application uses IDEA® Data Analysis software and includes several tests that identify control weaknesses by analysing data generated from deposit accounts. Once identified, the application then reports the exceptions and provides guidelines for remediation.

Loan Examiner

CaseWare Analytics’ Loan Examiner provides an easy way to automatically detect errors and possible fraud schemes involved with loan accounts. The application uses IDEA® Data Analysis software and includes several tests that identify control weaknesses by analysing data generated from loan accounts. Once identified, the application then reports the exceptions and provides guidelines for remediation.

SmartAnalyzer – Other AppsDuplicate Excluder

Comparing values in the same field, but in different rows is a challenge – especially if you need to not only identify which data differs, but how it differs. The Duplicate Excluder App uses a comprehensive suite of nine tests to identify duplicates across rows and refine the difference for one field. This testing process helps filter out false positives that differ significantly in value. The maximum amount of difference between numbers can be specified to pinpoint potential areas of interest, anomalies or errors.

The Duplicate Key Exclusion App helps identify records where certain key fields are the same, but the exclusion field is different. Tests included with this App are:

• Character Differences Due to Transpositions• Character Differences within a Levenshtein Distance:• Date Differences within a Range• Numeric Absolute Differences within a RangeNumeric Absolute Differences within a Range• Numeric Percentage Differences within a Range• Opposite Amounts when Absolute Values Remain Constant• Varying Letters when Numbers Remain Constant• Varying Letters when Numbers Remain Constant• Varying Numbers when Letters Remain Constant:• Varying Special Characters when Alphanumerics Remain Constant

SmartAnalyzer – Other AppsIS Fraud Tool Kit

The IS Fraud Tool Kit contains various audit tests that enhance the Benford tests found in IDEA along with including several additional tests looking for number duplication and rounded numbers.

Main app content:

Benford Tests:

• 1st, 2nd, 3rd & 4th digit test• 1st two digit test• 1st three digit test• Last two digit test

Duplication Tests:

• Same-Same-Same test• Same-Same-Different test• Number Duplication test

Other tests:

• Relative Size Factor test• Modulus test• Mod tax test

SmartAnalyzer – Other AppsAddress Cross Checker

The Address Cross Checker App combines numbers found in street address fields (street address, suite number, box number, etc.) with the first 5 digits in the address’ zip code to create a numeric address key for each address record. The address key can then be used to match addresses within a database or between any two address databases to produce a higher number of true matches. Some fuzzy matches will occur, such as two addresses on different streets within the same zip code. This mainly occurs in cities where there is greater uniformity in street layouts. This App utilizes two matching approaches:

• Approach #1: The Visual Connector feature within IDEA performs many-to-many matches. Each address key record in the first database will be matched to every possible matching address key record in the second database.

• Approach #2: The Join database feature in IDEA performs a many-to-one match. Each address key record in the first database will be matched to the first matching address key record encountered in the second database.

The output database from both matching processes will need to be reviewed to separate the true matching records from the inadvertent or false positive matches. The Address Cross Checker App is designed to accommodate up to three separate street address fields and one separate zip code field thus providing greater flexibility in building your address key.

SmartAnalyzer – Other AppsRunning Total

The Running Total app creates a new RUNNING_TOTAL_X (X being the field you tagged during setup) field that adds the values of the tagged numeric field one row at a time. It differs from the built-in Control Total in that it shows you the changes in the total row by row.

IS Multi File Import

The IS Multi File Import allows you to import multiple files into IDEA in just one pass. The application will handle all the most common IDEA file types such as dBase, Microsoft Access, Microsoft Excel, Print Report, EBCDIC, Text Fixed Length, Text Delimited and XML.

Excel Export Utility

Easily export multiple IDEA databases into separate worksheets in Excel and automatically name each sheet.

SmartAnalyzer – Apps in Development• General Ledger Controls

• Journal Entry Controls

• Accounts Payable Controls

• Procurement Controls

• Accounts Receivable Controls

• Fixed Asset Controls

• Inventory Controls

• Travel & Expense Controls

• Procurement Controls

• Payroll Expenses Controls

• Travel & Expenses Control

Plus more….

SmartAnalyzer Demonstration

SmartAnalyzer Apps SDK

Thank you for your time.

idea 10 - auditware.co.uk · stratified random sampling is unique to idea and lets users take a...

Documents