IDEA Basics, Getting Started, and Basics of Importing Data

AuditNet® Training without Travel™
IDEA Software Training via Practical Application
IDEA Basics, Getting Started, and Basics of Importing Data
Guest Presenter:
Richard Cascarino, MBA, CIA, CFE,CRMA, CISM
Richard Cascarino & Associates

About Jim Kaplan CIA CFE
 President and Founder of
AuditNet®, the global resource
for auditors (now available on
Apple, Microsoft and Android
devices)
 Auditor, Web Site Guru,
 Internet for Auditors Pioneer
 Recipient of the IIA’s Bradford
Cadmus Memorial Award.
 Author of “The Auditor’s Guide
to Internet Resources” 2nd
Edition

Richard Cascarino MBA CIA CISM CFE
 Principal of Richard Cascarino &
Associates based in Colorado USA
 Over 30 years experience in IT
audit training and consultancy
 Past President of the Institute of
Internal Auditors in South Africa
 Member of ISACA, ACFE, IIA
 Author of Auditor's Guide to IT
Auditing and Corporate Fraud
and Internal Control

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Today’s Agenda
2
3
Starting a Project
4
Importing Data
1 About IDEA
Planning the Audit
Page 6

Computer Assisted Audit Solutions
 IT needed because of large volumes of data in
multiple locations
 CAAS involves
 Merging software into an audit programme
 Predefining key control questions
 Use of the technology to analyze the data and
provide the answers
 Advantages
 Increased auditor productivity
 Increased audit creativity
 Consistent methodology
7

IDEA
 Interactive Data Extraction and Analysis
 22 years young
 Database limitations:
 • 2.1 billion records (100,000 records for IDEA
Express) depending on the operating system
 • 1.8 Exabytes file size (Tera, Peta, Exa)
(Quintillion)
 Some facilities not available in IDEA (Server)
8

Starting IDEA Pre Version 9
 Start
 Programs
 IDEA
 Setting the Working Folder ‐ contains
 data files
 Equations
 Views
 import definitions
 File
 Set Working Folder
 C:User<username>My DocumentsIDEASamples

Starting IDEA Version 9
 Start
 Programs
 IDEA
 Setting the Working Folder ‐ contains
 data files
 Equations
 Views
 import definitions
 Select
 Managed Projects
 Samples
10

Basic Idea Screen
11
1
2
5
4
3
8
76

Areas
1.Menu Bar
2.Operations Toolbar
3.File Explorer Toolbar
4.File Explorer Window
5.Database Window
6.Flyout Windows
7.Status Bar
8.Properties Window
12

Properties
Data
History
Field Statistics
Control Total
Criteria
Results
Indices
Comments
14

Results Window
 Gap Detection (optional)
 Stratification (optional)
 Summarization (optional)
 Aging (optional)
 Generate Random Numbers
 Pivot Table
 Monetary Unit Sampling
 Classical Variable Sampling
 Benford’s Law
 Chart Data
15

Starting a Project
Select Project
Click on Samples
Choose
Sample-Customers
16

Pick Up Customer File
• Build indexes for
– Company
– Last Name
– Credit Limit
• Reverse Index
• Look for duplicate Last Names
• Analysis
• Duplicate Key
• Detection
• Key
– Last_Name
– OK
– OK
17

More Duplicates
Look for Duplicate last and first
names
Look for Duplicate last and first
names in the same country
Look for Duplicate Credit Limits
18

Summarization
Analysis
Summarization
Credit_Limit
Go to the High Values
Find out who they are
19

Getting the Data
DESKTOP (+)
Microsoft Access
C:UsersyournameMy IDEA
DocumentsProjectsSAMPLESCu
stomer.MDB
NEXT
OK
21

Changing the Layout
Go to the divider between Cust_No
and First_ Name
Click and Drag
Click on the Credit_Lim Column
Click and drag it next to
Last_Name
Right Click on Cust_No and
change it to blue
22

View Field Statistics
 In the Properties Window
 Field Statistics
 YES
 Note
 # of Records: 341
 # of Zero Items: 0
 Average Value: 62,475.07
 Minimum Value: 2,000
 Maximum Value: 3,901,000
 Click the fields highlighted in Blue
23

Picking a Sample
 In Properties Window
 Data
 Sampling
 Random
 Number of Records 10
 File Name Sample of Customers
 Fields
 Happy with all
 OK
 OK
 Close Sample of Customers
24

Extracting Records
 Data
 Extractions
 Direct Extraction
 In File Name Large Credit Limits
 Equation Editor (Calculator)
 Build Credit_Lim >= 30000
 Validate Button (second from left)
 OK
 OK
 Should be 61 records
 Close all open files
26

Importing a Text File
Use Desktop (+) to import a text file
called sales.txt from the Tutorial
folder
Try it as an EBCDIC file
Go back to ASCII
Next
Try changing the record length
Next
You will need the file layout
27

Sales.txt Layout
Field Name Type Start Len Dec Mask Description
 INV_NO 1 7 Invoice Number
 TRANS_DATE D 8 8 YYYYMMDD Transaction Date
 PAY_TYPE C 16 4 Type of Payment
 SALESMAN N 20 3 Salesman ID
 CUST_NO N 23 5 Customer Number
 PROD_CODE C 28 2 Product Code
 AMOUNT N 30 11 2 Transaction Amount
28

Defining Files
 Next
 If data to be filtered click Equation Editor
 Next
 We want to:
 Import the File
 Generate Field Statistics
 Call the database Sales Transactions
 Finish
 (If you make a mistake Data then Field
Manipulation)
29

Summarizing Data
Select Sales Transactions
Analysis
Summarization
Fields to summarize: CUST_NO
Numeric fields to total: AMOUNT
Choose Create database
Choose Use Quick Summarization
File Name is Summarized Transactions
30

Stratifying Data
 Select Summarized Transactions
 Create Field Statistics (remember how?)
 Go back to Data
 Right click any record
 Show Field Stats
 Choose
 Net value
 Absolute value
 Minimum value
 Maximum value
 OK then adjust column widths
31

Removing Field Statistics
 Right click any record
 Show Field Stats
 Clear All
 OK
 Analysis
 Stratification
 Choose
– Fields to Stratify: Amount_Sum
– Fields to total on: No_of_Recs
 Make Increment 5000
 Click Upper Limit in rows 1-5
 Make Increment 25000
 Click Upper Limit in rows 6-12
 Result Name Numeric Stratification OK
32

Selecting Controls For Testing
 Establish "prime" Controls for an Area
 Identify Controls covering several Areas
 Identify Stand-alone Controls
 Controls which provide Evidence
 Do NOT try to prove a Negative
34

Primary Areas of Concern
 Complex Systems cannot be re-created manually
 Many computer records are intelligible only to
computers
 Most systems allow multiple access
 "Computers can be trusted"
 Disasters really mean Disaster
35

CAAT Types and their Usage
 Application audit tools are not always CAATs
 "Any tangible aid that assists an auditor"
 Tools to obtain information
 Tools to evaluate controls
 Tools to verify controls
 Automated tools
36

Obtaining information
 Interviews
 Questionnaires
 Analytical audit flowcharts
 Flowcharting software
 Documentation Review
37

Control Evaluation
 Application control matrix
 Components
 Concerns
 Adequate
 Inadequate
38

Control Verification
 Audit around
 Test data
 Reperformance of key functions
 Reprocess selected items
39

Automated Tools (CAATS)
 Test Data Generators
 Flowcharting Packages
 Specialized Audit Software
 Utility Programs
 Generalized Audit Software
40

Specialized Audit Software
 Can accomplish any audit task but
 High development and maintenance cost
 Require specific I.S. skills
 Must be "verified" if not written by the
auditor
 High degree of obsolescence
42

Generalized Audit Software
 "Prefabricated" audit tests
 Each use is a one-off
 Auditor has direct control
 Lower development cost
 Fast to implement
43

Applications of Generalized
Audit Software
 Detective examination of files
 Verification of processing controls
 File interrogations
 Management inquiries
44

Types of Audit Software
 Program generators
 Macrolanguages
 Audit-specific tools
 Data downloaders
 Micro-based software
45

Audit Software Functions
 File access
 Arithmetic operations
 Logic operations
 Record handling
 Update
 Output
 Statistical
 File comparison
 Graphics
46

Determining the Appropriate
CAAT
 Depends on the Audit Objective and
selected technique
 Application Audit Techniques
 Purposes
 1 To verify processing operation
 2 To verify the results of processing
48

Common Problems
 Getting the wrong files
 Getting the wrong layout
 Documentation is out of date
 Prejudging results
 Never believe what the first printout tells you
49

Supplemental Information
• AuditNet Guide to Downloading Data
• Data Request Sample Letter
• CAATS – Web site from Dave Coderre
– Generic Approach to the Application of Data Analysis to Auditing
©CAATS 2007
– http://www.caats.ca
• Computer Assisted Audit Tools and Techiques
– http://www.auditnet.org/CAATT.htm
• Data Analysis Software Demo Evaluations
– ACL – http://www.acl.com
– IDEA - http://www.caseware.com/products/idea

Questions?
• Any Questions?
Don’t be Shy!

Training Schedule
IDEA Software Training via Practical Application
1. IDEA Basics, Getting Started, and Basics of Importing Data
2. Importing Data ‐ The Complete Course in All File Types and Data
Tricks to Get Your Data Ready for Analysis
3. Conducting basic Data Analysis with IDEA
4. Reporting using IDEA
5. Importing Data from Reports using the IDEA Report Reader
6. Advanced Report Importing
7. Using Statistics in IDEA
8. Continuous Monitoring using Advanced Statistical Analysis
9. Basic Script Writing in IDEA
10. Using advanced @Functions
11. Advanced Script Writing in IDEA Part 1
12. Advanced Script Writing in IDEA Part 2

Thank You!
Richard Cascarino, MBA, CIA, CISM, CFE
Richard Cascarino & Associates
970-291-1497
rcasc@rcascarino.com
Jim Kaplan
AuditNet LLC®
800-385-1625
www.auditnet.org
webinars@auditnet.org

IDEA Basics, Getting Started, and Basics of Importing Data

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