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Take Your Data Analytics Skills

To the Next Level

Don SparksAudimation ServicesFebruary 10, 2015

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Warm UP Routine

1. Difference between a Data warehouse, mart, or lake? What is the significance?

2. What is your auditing function’s strategy on data analytics? Core Skill; specialist only; do not need; customers do not expect.

3. What are you reading these days? “Lean Auditing” by James Paterson, not the James Patterson that writes the Alex Cross murder mystery’s.

4. Do IDEA Users know where the Training Documents are located?

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“Nothing moves auditors into the board room faster than finding undetected anomalies in company data.”

Data Analysis: Cornerstone to Effective Internal Auditing

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Tips for Successful Data Analytics Integration

• Start with a high-priority, high-return

project

• Focus on efficiency and effectiveness

• Communicate

• Be brief; be thorough; be gone!

• Exercise patience

• Call the Integration Help Desk

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Short Video Clips

• Data Analytics 2.5 minute promo• Equity Funding – Start 1 minute• Equity Funding – Stop 1 minute

• Open IDEA and demonstrate how easy the fraud would have been detected if auditing was provided a timely tip.

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One of My Own Wake-Up Calling

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Analytics Journey

Data Information Insight Action

Data Analysis Process

Source: Aberdeen Group May 2012

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Average

Better

Good

World Class

Data

An

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tics –

A P

racti

cal

Ap

pro

ach

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Systematic Selection & Implementation – Work Plan

Do You Need a Roadmap?

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Auditing Top Duties Have Changed

Risk management processes are monitored through ongoing management activities, separate evaluations, or both. (New)

2120.A1 – The internal audit activity must evaluate risk exposures: • Achievement of the organization’s strategic

objectives• Reliability & integrity of financial & operational information• Effectiveness & efficiency of operations & programs• Safeguarding of assets• Compliance with laws, regulations, policies, procedures, &

contracts

2120.A2 – The internal audit activity must evaluate the potential for the occurrence of fraud and how the organization manages fraud risk.

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Moving to “Green”er Pastures?

Administrators contemplating an online program, must understand the:

• Critical design• Administrative issues – Teach the

Teachers• Decision-making processes• “Red” flags signaling trouble ahead• Need for a Plan “B & C”

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Things Have Changed in 20 Years(Since 1995)

• 18 million American homes online, but only 3% of online users had ever signed on to the World Wide Web.

• Amazon.com opens for business, hyping itself as “Earth’s Biggest Bookstore.”

• Craig Newmark starts craigslist, originally an email list of San Francisco events.

• Match.com, the first online dating site, launches.• Entrepreneur Pierre Omidyar launches ebay, originally named

“AuctionWeb.” First item sold: a broken laser pointer. A collector purchases it for $14.83.

• Netscape IPO starts the gold rush mentality for Web startups.• Microsoft releases Windows 95 and the first version of Internet Explorer.• Web hosting service GeoCities launches.• The Dancing Baby, a 3D animation, becomes one of the first viral videos.

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AuditUniverse

RiskBased

ExpectedControls

Automated

ManualAlternative

Testing

AnalysisTesting

Ongoing Monitoring

Auditing by Priority

Regular Monitoring

Not a key risk

Auditing Best Practices Have Changed

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• Parents seek advice of teachers on best education software for home use.

• Progressive teachers take PC’s into classroom for “special use”.• Special use internet enabled computers in the classroom

replace VHS and cable TV as education rich websites grow with easier to handle media.

• By 2000 many schools have computer labs usually from donated PC’s.

• The first educator’s administrative stand-alone software available (GradeBook) around 2007.

• In the last two years, many school districts have pooled resources and established enterprise-wide online platforms involving the district, school, parents, teachers and students. Less costly, better and faster service.

K12 Education Has Changed(Since 1995)

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Today

• Teachers like common tasks streamlined to save time and focus on instruction. Easily record standards-based assessments, take attendance, grade assignments on rubrics, and keep behavior logs. See whose grades are dropping, and email the whole class.

• Students and parents can login to check grades and homework, download files, and view announcements and calendar notices. School-to-home communications are dramatically improved. Parents can set alerts for low grades, missing assignments, and absences.

• With Smart-boards in the class running with online forms, simple activities can be handled by the student as they arrive.

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New Risks in Online Processes

• Teacher Gradebook• End of Period Report

Cards• Parent Contact Data Base• Scheduling• Parent/Teacher Messages• Attendance• Seating charts• Discipline• Billing• Cafeteria• Admissions• Online Applications

• Data Base Admin Duties• Online Forms• Accounting• Lunches• Field Trips/Chaperones• District Management• Photo ID Cards• Emergency Notification

System• School Nurse• School Library• Special Development Needs• Special Assessment Tests

Are these areas in your “Audit Universe”?

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It Does Not have to Take 10 Years to Make an Overnight Success

At a county high school, students are still waiting for final grades from the spring because of a programming error (July 19, 2014)

Source: Orlando Sentinel

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UPDATE 7/23 - Report Cards Ready?

High school students and recent graduates are still waiting for their final spring grades, even as Back to School shopping gets underway. More than six weeks after school let out for the year, district officials are still unsure that student report cards are accurate. A "human programming error" that wasn't caught until after some report cards were picked up has led to a long delay.District spokeswoman said that final grades -- which are calculated by a program that also factors in outside results like state End of Course scores -- did not work properly. A possible reason is that a programmer left the district before report cards were complete. A small-scale verification did not find the problem before schools and parents did, she said.

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Analytics Demonstration

• Determine the last date a teacher, parent or student accessed the report card and include the frequency for the reporting period.

• The Challenge: Typically, only the Database Administrator has access to the login data and it is displayed at a specific point in time.

• One Solution: Archive the reports regularly so they can be analyzed (appended) to present a more detailed review of login activity.

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Parent Account SysAdmin View

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Questions?

Don Sparks, CIA, CISA, CRMA dons@audimation.com

Audimation Services1250 Wood Branch Park Drive

Houston, TX 77079

888-641-2800