Workshop: Using data analysis to flag transactions of interest

Starts 10 Feb 2022

Overview

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TITLE:

Workshop: Using data analysis to flag transactions of interest

OVERVIEW:

Need to audit millions of transactions and don’t know which ones to focus on?

Taking a simple statistical sample is of course one way of selecting a limited set of transactions. However, in this workshop, we take a more risk-based approach and focus on “transactions of interest”.

TARGET AUDIENCE:

Auditors with an interest for using data analytics in their audit work.

COURSE OBJECTIVES:

We aim to illustrate how to select a subset of transactions from a large population use “Focus indicators” or “flags”.

COURSE CONTENT:

First, we identify characteristics that would make a transaction stand out. Examples may include round amounts, weekend transactions, duplicates, vendor dependency, etc.

Then, using a specialised data analysis tool “Arbutus Analyzer” (other tools could be used as well) we test each transaction for the defined characteristics, resulting in “red flags” or as we like to call them “Focus indicators”.

Optionally, we give each indicator a specific weight as not all are equally important.

Finally, we use a scoring mechanism to come to a reduced set of transactions to investigate further.

As a bonus, we illustrate how the return on investment can be increased by scheduling this test to automatically run each quarter and send email alerts when it identifies new transactions of interest; in effect turning the audit effort into an effective continuous monitoring system.

More details can be found here (https://www.sepiasolutions.net/C002). After the workshop, this link will take you to the fully documented use case.

PREREQUISITES:

None

Workshop: Using data analysis to flag transactions of interest

In this workshop, we take a more risk-based approach and focus on "transactions of interest".

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Facilitator

About the facilitator

Alain Rousseau

Audit software expert

Alain Rousseau is the driving force behind Sepia Solutions and has focussed on audit software tools since 2007. He has implemented data analysis tools (Arbutus Analyzer and ACL) and audit management tools (PAWS and Pentana Audit) at dozens of audit departments.

With an education and background that is both technical (industrial engineer) and business (MBA), Alain is the ideal interface between business users and software developers. His in-depth understanding of the software packages and a firm understanding of the audit profession also makes him an excellent trainer and consultant for these software packages.

Through Sepia Solutions, Alain has sponsored and worked with the IIA since 2010 and participated in various events. As part of the IIA’s Master Class Internal Audit Essentials, he recently wrote a paper discussing the effect of audit software on meeting the IIA’s IPPF standards.

Finally,  Alain tells us he hopes to be the catalyst for your next data analysis project or your implementation of audit management software.