Exploring Data Analytics & CAATsSource: Caseware IDEA pot

Exploring Data Analytics & CAATs Source: Caseware IDEA This is trial version www.adultpdf.com Auditing ERP Applications – Case Study Audit of Staff Claims • Medical Claims • Transport Claims Why audit ERP applications using data analytics? • Data analysis approach allows detection of non-compliances and help organisation achieve value-for-money • Review ALL (100%) of transactions vs sample 30 claims How to approach audit of ERP applications • Step 1: Import data from ERP system i.e. Excel or flat files • Step 2: Define field definition (text, numeric, date) • Step 3: Run analysis i.e. exceptions, duplicates, patterns • Step 4: Report exceptions, anomalies, patterns This is trial version www.adultpdf.com Auditing ERP Applications – Case Study This is trial version www.adultpdf.com Use of IDEA in Audit of Staff Claims (Medical) Obtain list of staff medical claims from ERP system for period of interest ( e.g. all transactions for 1 year) Identify key fields for testing i.e. “RECEIPT NO.” , “STAFF ID” and “CLINIC/HOSPITAL” Summarise by “STAFF ID”, followed by “RECEIPT NO.” and analyse for anomalies Run duplicates test on “RECEIPT NO.” Detecting Duplicate Claims This is trial version www.adultpdf.com Use of IDEA in Audit of Staff Claims (Medical) Obtain data, identify fields of interest i.e. “RECEIPT NO.”, “RECEIPT DATE”, “STAFF ID” Run duplicates test on “RECEIPT NO.” and “RECEIPT DATE” Query HR on duplicate payment Detecting Duplicate Claims This is trial version www.adultpdf.com Use of IDEA in Audit of Staff Claims (Transport) Audit Observation #1 Non-deduction of Normal Travel Expenses from Office to Home for journeys Starting or Ending from Home 1 • Obtain staff travel claims data for 1 year • Identify fields of interest i.e. “FROM”, “FROM_TO_HOME”, “OFF_DAY”, “STAFF ID” 2 • Extract FROM = “Home”, FROM_TO_HOME = “N” and OFF_DAY = “N” • Do similar for TO = “Home” etc. 3 • Flags out all transactions where staff did not deduct the cost of journeys starting or ending at “home” since reimbursement policy does not allow claims for journeys made from home to workplace Detecting Erroneous Claims This is trial version www.adultpdf.com Use of IDEA in Audit of Staff Claims (Transport) Audit Observation #2 Possible Duplicate Taxi Claims and Claims without Valid Taxi Receipt Numbers 1 • Obtain staff travel claims data for 1 year • Identify fields of interest i.e. “RECEIPT_NO” 2 • Extract data where “RECEIPT_NO” is not “” and test for duplicates • Extract data where “RECEIPT_NO” is “” (blank) 3 • Flag out all exceptions to business rules and query department responsible for anomalies Detecting Erroneous Claims This is trial version www.adultpdf.com Use of IDEA in Audit of Staff Claims (Transport) Audit Observation #3 Unusual multiple journeys within the same day by same staff 1 • Obtain staff travel claims data for 1 year • Identify fields of interest i.e. “RECEIPT DATE”, “STAFF ID” 2 • Summarise by “RECEIPT DATE” and “STAFF ID” • Sort by “NO_OF_RECS” (no. of records) 3 • High “NO_OF_RECS” indicate multiple journeys made on same day by same staff. Unusual unless staff is doing delivery Detecting Erroneous Claims This is trial version www.adultpdf.com Use of IDEA in Audit of Staff Claims • Walkthrough and document business process • Identify key controls for testing Understand business process • Identify and understand data available • Key fields for testing Obtain data of interest • Do field statistics or summarise all fields to get overall picture of data Get big picture • Run analysis for exceptions to business rules Analyse for exceptions Using a Data Driven in Auditing ERP This is trial version www.adultpdf.com Understanding the Risks of Hosting ERP Data with Cloud Computing This is trial version www.adultpdf.com . Exploring Data Analytics & CAATs Source: Caseware IDEA This is trial version www.adultpdf.com Auditing ERP Applications. Staff Claims • Medical Claims • Transport Claims Why audit ERP applications using data analytics? • Data analysis approach allows detection of non-compliances and help organisation achieve. Detecting Duplicate Claims This is trial version www.adultpdf.com Use of IDEA in Audit of Staff Claims (Medical) Obtain data, identify fields of interest i.e. “RECEIPT NO.”, “RECEIPT DATE”,