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DISCUSSIONS > IIA GENERAL DISCUSSION AREA [ REFRESH ]
Thread Title: Data Analytics
Created On Monday September 10, 2012 2:25 PM
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WAGirl


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Monday September 10, 2012 2:25 PM

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In the Internal Audit Department in my company, projects generally take a few months to complete. However, during certain times of the year, such as the Holiday season, or in-between projects, we have employees that have some down time. I am trying to put together a list of some short analytical data projects that auditors that have some down time can pick up and finish in a short period of time (1 or 2 weeks ideally). Some ideas I have gotten through research is to run a report of all off cycle payroll checks written. Another is change in Gross pay amounts over a period of time. I want to concentrate on Inventory, Payroll, and Accounting, and the American Express Company credit card. Does anyone have any other good ideas of some quick analytical audits tests that we can run? Thanks

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Paul_M


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Tuesday September 11, 2012 4:04 PM

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You might first talk with the CFO or your operations managers to see if there are any analytics they would like. That would give you some insight into what they are most concerned about. It would make the results more appealing to your audience (who might not otherwise care if you do them on your own).

Having said that, here are some examples of common analytics in the areas you said were interested in.

Inventory
Missing key data fields (e.g., part number, quantity, cost)
Duplicate item numbers, parts or descriptions
Negative quantities or costs
Items with zero cost
Significant usage near period-end
Identify surplus or obsolete inventory
High value items' analysis
Stock turnover analysis by item (aging)

P-Cards
Cardholders with a spending limit of the maximum amount that have an actual purchase amount significantly less
Summary of transactions by approver
Purchases by Merchant Category Code
Summary of purchases by vendor
Summary of purchases by cardholder
Spend analysis of each card holder to review for unusual activity
Potential duplicate transactions
Repetitive buying pattern of even dollars, near purchase limits, or same vendor
Purchases from unusual vendors
Individual spend > $ limit
Multiple transactions with same vendor on same day
Split transactions with same vendor on same day
Cardholders with spending limits greater than the policy standard

Payroll
Missing data in payroll records, such as missing social security numbers or addresses
Review all pay rate changes for the year.
Employees with unusually high overtime compared to others or as a percentage of the employee’s salary
Commissions and bonuses paid as a percentage of product revenue
Changes in exemption, gross pay, rates and salary amounts
Duplicate direct deposit numbers
Individuals on the payroll with no work address, contact numbers, etc.
Match vendor file and employee human resources file for names, addresses, phone numbers, etc.

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Marc LeBlanc


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Monday September 17, 2012 9:10 AM

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From my experience, the easiest and quickest 'bang for the buck' in analytics is the identification of duplicate accounts payable transactions to vendors. We have been running the analytics 4 times a year for a decade yet we still see the occasional duplicate trickle through. The first passes revealed a significant number of duplicates which resulted in considerable recoveries and an increase in the underlying process controls.

Good luck to you.

Marc

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Crash


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Monday September 24, 2012 2:45 PM

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The ones listed are great. Another one I run is to pull the logs for system access for however long they are retained. I will then do anlytics against termination records to see if accounts were used after someone left (disable issue, abuse issue). I will also look at holiday access, late night access, etc etc. Knowing who is accessing critical systems and when they do it is important and can be the seeds to help identify potential fraud.

-------------------------
Do the right things for the right reasons.

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DISCUSSIONS > IIA GENERAL DISCUSSION AREA [ REFRESH ]
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