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Slide 1: Audimation Services Joanne Koonce-Hamar
Slide 2: Data Mining Defined 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.
Slide 3: 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
Slide 4: 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.
Slide 5: Reasons to Overcome Roadblocks Cont. ACFE Report to Nation
Slide 6: Main Areas for Data Analysis Software Use Checking Calculations Identifying Exceptional Items Analytical Review IDEA® Searching Data Analysis for Text in Multiple Software Fields and Files Cross Testing for Matching Data Completeness – Between Gaps & Files/Systems Duplicates
Slide 7: Report Mining Low-Cost and High-Impact High Manpower Low Tech Cost Low Manpower Low Tech Cost Low Manpower High Tech Cost USERS OF INFORMATION Tools for Data Mining Tools for Data Mining Report Generators Report Generators OPERATIONAL DATA
Slide 8: Analyzing Data
Slide 9: Editable Fields
Slide 10: Uses for Editable Fields Manual Information such as Comments Create Adjustments to Booked Amounts or Dates Tick Marks
Slide 11: Pre-Defined Tests Utilize pre-written audit tests to improve audit quality and consistency – Smart Analyzer Complete includes A/R, A/P and General Ledger tests
Slide 12: For more information about IDEA Data Analysis Software visit us on the web at www.audimation.com Presenter: Joanne Koonce-Hamar joannek@audimation.com