Getting Started Using ACL in Your Next Audit

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ACL Software is a powerful product yet many users are concerned it is difficult to start and therefore, may never effectively maximize the product. If you fall into this category or just want to learn from one of the top industry experts in ACL Software (over 20 years experience), this course will provide the key learning blocks to get started quickly auditing three top audit areas for data analytics. Using a live/video training library approach, we help companies of all sizes use audit and assurance software to improve business intelligence, increase efficiencies, identify fraud, test controls, and bottom line savings. AuditNet and Cash Recovery Partners Webinar recording available at and (registration required) Recording free to view. Sample Data Files for All Courses are available for $49 To purchase access to all sample data files, Excel macros and ACL scripts associated with the free training visit AuditSoftwareVideos.

Transcript of Getting Started Using ACL in Your Next Audit

  • Getting Started with ACL- Top Basic & Intermediate Techniques (2 CPE Credits) April 24, 2014 AuditNet and AuditSoftware.Net Collaboration Brought to you by and AuditNet, working together to provide Practical audit software training Resource links Independent analysis Tools to improve audit software usage Today focused on providing practical data analysis training Page 1
  • About Jim Kaplan, CIA, CFE President and Founder of AuditNet, the global resource for auditors (now available on Apple and Android devices) Auditor, Web Site Guru, Internet for Auditors Pioneer Recipient of the IIAs 2007 Bradford Cadmus Memorial Award. Author of The Auditors Guide to Internet Resources 2nd Edition Page 2 About AuditNet LLC AuditNet, the global resource for auditors, is available on the Web, iPad, iPhone and Android devices and features: Over 2,000 Reusable Templates, Audit Programs, Questionnaires, and Control Matrices Training without Travel Webinars focusing on fraud, audit software (ACL, IDEA, Excel), IT audit, and internal audit Audit guides, manuals, and books on audit basics and using audit technology LinkedIn Networking Groups Monthly Newsletters with Expert Guest Columnists Book Reviews Surveys on timely topics for internal auditors Introductions Page 3
  • Webinar Housekeeping Page 4 Thiswebinaranditsmaterialarethe propertyofCashRecoveryPartners. Unauthorizedusageorrecordingofthis webinaroranyofitsmaterialisstrictly forbidden.Wearerecordingthewebinar andyouwillbeprovidedwithalinktothat recordingasdetailedbelow.Downloadingor otherwiseduplicatingthewebinarrecording isexpresslyprohibited. Webinarrecordinglinkwillbesentviaemail within57businessdays. NASBArulesrequireustoaskpolling questionsduringtheWebinarandCPE certificateswillbesentviaemailtothose whoanswerALLthepollingquestions TheCPEcertificatesandlinktotherecording willbesenttotheemailaddressyou registeredwithinGTW.Wearenot responsiblefordeliveryproblemsdueto spamfilters,attachmentrestrictionsorother controlsinplaceforyouremailclient. Submitquestionsviathechatboxonyour screenandwewillanswerthemeither duringorattheconclusion. AftertheWebinarisoveryouwillhavean opportunitytoprovidefeedback.Please completethefeedbackquestionnairetohelp uscontinuouslyimproveourWebinars IfGTWstopsworkingyoumayneedtoclose andrestart.Youcanalwaysdialinandlisten andfollowalongwiththehandout. Disclaimers 5 Theviewsexpressedbythepresenters donotnecessarilyrepresentthe views,positions,oropinionsofAuditNetorthepresentersrespective organizations.Thesematerials,andtheoralpresentationaccompanyingthem, areforeducationalpurposesonlyanddonotconstituteaccountingorlegal adviceorcreateanaccountantclientrelationship. WhileAuditNetmakeseveryefforttoensureinformationisaccurateand complete,AuditNetmakesnorepresentations,guarantees,orwarrantiesas totheaccuracyorcompletenessoftheinformationprovidedviathis presentation.AuditNetspecificallydisclaimsallliabilityforanyclaimsor damagesthatmayresultfromtheinformationcontainedinthispresentation, includinganywebsitesmaintainedbythirdpartiesandlinkedtotheAuditNet website Anymentionofcommercialproductsisforinformationonly;itdoesnotimply recommendationorendorsementbyAuditNet
  • AuditNet and AuditSoftware.Net Collaboration Brought to you by and AuditNet, working together to provide Practical audit software training Resource links Independent analysis Tools to improve audit software usage Today focused on providing practical data analysis training Page 6 Richard B. Lanza, CPA, CFE, CGMA Over two decades of ACL and Excel software usage Wrote the first practical ACL publication on how to use the product in 101 ways (101 ACL Applications) Has written and spoken on the use of audit data analytics for over 15 years. Received the Outstanding Achievement in Business Award by the Association of Certified Fraud Examiners for developing the publication Proactively Detecting Fraud Using Computer Audit Reports as a research project for the IIA Recently was a contributing author of: Global Technology Audit Guide (GTAG #13) Fraud in an Automated World Institute of Internal Auditors. Data Analytics A Practical Approach - research whitepaper for the Information System Accountability Control Association. Cost Recovery Turning Your Accounts Payable Department into a Profit Center Wiley and Sons. Please see full bio at
  • Learning Objectives Be able to map audit objectives in accounts payable, as an example audit area, to the specific test scripts to perform the task (sampling of these scripts are provided with the course). Learn how to request data for your next review that will meet your reporting requirements. See how to define Fixed field, Variable length, Excel, Delimited, Report files, and more in ACL. Learn to use Statistics, Count and Total in your reporting results. Be able to utilize the Classify, Stratify, Age, Summarize, and Crosstab function Learn to complete gap and duplicate sequence tests and, more specifically, how to complete a same, same, different duplication test in ACL. Understand how to Verify and Search databases for information, as well as, extract needed information to a new file for analysis. Learn to Merge and Relate multiple tables, including steps to fixing data files prior to merging them together. See how to use the JOIN function including effective many to many JOINs using key words. Understand how to translate sampling theories to ACL commands. See record sampling in action (Random, Fixed Interval) and how to perform Monetary Unit and stratified samples in ACL. Page 8 Quick Process to Running Data 1. Know your audit objectives 2. Align reports to the objectives 3. Use past reports to model /refine reports 4. Set data requirements based on reports 5. Obtain, validate, and normalize data 6. Edit scripts for data needs 7. Run reports and document results Page 9
  • Clear Data Request Accounts Payable Data Request.doc Page 10 Sample Data Validation Accounts Payable Other Questions Validation analysis can be programmed into the data normalization script to answer the below questions: Statistical analysis should also be completed as part of the validation analysis Agreement to batch totals and sample data are critical Page 11
  • Polling Question #1 What comes first in the data extraction process? Request data Set objectives for the audit Set report objectives Validate data Page 12 Data Import Exercise Using 101 ACL Application Data Fixed Length File (Best for ACL) Tab / CSV (Variable) Excel (Variable) Report (Multiple Record Fixed) PDF Files Page 13
  • Data Field Definition Flowchart for ACL Is it a date? Do you add or subtract the field? Define as a date format Define as a numeric format Yes Yes Define as a character format Define as a Print format Are there any decimal places? Yes No No No Page 14 Data Definition Wizard It is not always right but can be easily fixed Defining field lengths with a reasonable length Defining overlapping fields Set Date options Page 15
  • Polling Question #2 What data table type is the easiest to define and use in ACL? Fixed length Tab / CSV / Other Delimited Excel Access Other Page 16 The Basic Analyzers Count Total Statistics Page 17
  • Stratify Types Stratify Stratify Using a Break Stratify to a Table Page 18 Summarizing Data Summarize Use of Presort / Sort Maximizing the Other Fields Page 19
  • Crosstab Data Gain a column perspective Similar to Pivots Use Presort Page 20 Polling Question #3 Which command should be preceded by a Sort or use a Presort command? Statistics Stratify Cross-tab Age Page 21
  • Gaps and Duplicates - Basics Gap ranges and lists Duplicate Use of the Sort/Presort Page 22 The Data Menu Page 23
  • Verify Command Page 24 Checks for data validity errors between the data type and the actual data in the table Useful to quickly identify data format issues Will consider blank spaces in dates to be issues Search (Locate) and Seek Page 25 Search (LOCATE) Can get to a record number quickly Can search files without them being indexed Known as the LOCATE command in ACLs command language Seek Only works on indexed record sets
  • Extract (Append) and Merge Page 26 Extract IF To obtain a reduced data set Extract Append Combines files Resulting data file will not be sorted Merge Resulting file will be sorted Relate and Join Commands Page 27 Relate (DEFINE RELATION) Fast to produce / Slower for later commands Great to quickly organize various tables into a data model 18 tables can be related at once Join Produces a physically sorted/joined table Quick for later commands to execute on joined table
  • Primary and Secondary Joins Page 28 Join This to Last Year Summarized Tables Use Primary AND Secondary Calculate the new Vendor Number Field using the Primary and Secondary table results Seg_Duty Flow Segregation of Duties Test Page 29 1. Join paid table to vendor table on vendor number Obtain the vendor create user name 2. Extract if vendor create user