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— Generalized Audit Software (GAS)

— The IDEA Audit Software and
Functionalities
— IDEA Data Analytics
— What IDEA Can Do For You
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— A major tool that auditors can use to collect
evidence on the quality of application systems
— Provides a means to gain access to and
manipulate data maintained on computer or
storage media
— Developed to allow auditors to:
‡ Undertake their evidence collection work in a
variety of hardware/software environments
‡ Develop an audit capability quickly
‡ Maintain the technical knowledge auditors
need to be able to retrieve data from and
manipulate data in computer based information
systems
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— File access — Data coding, record
— File reorganization formats and data
structures
— Selection
— Sampling selection /
— Arithmetic
evaluation
— Stratification and
— Classify into categories
frequency analysis
and cross-tab
— File creation and
— Create and update work
updating
files based on client¶s
— Reporting production
— Sorting and merging — Editing and formatting
output
   

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— Examine the existence, accuracy,
completeness, consistency, and timeliness of
data maintained on computer storage media of
the data
— Examine the ¦uality of processes embedded
within and application system
— Examine the existence of the entities the data
purports to represent by facilitating the physical
observation and counting of these entities via
statistical sampling
— Undertake analytical review to monitor key audit
indicators such as trends in working capital ratios
over time
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— Evidence collection is not always timely

because it can be used to gather evidence on
the state of application systems only some
time after data has been processed
— It can perform only limited tests to verify the
authenticity, accuracy, and completeness of
processing logic
— It can be used to only a limited way to
determine the propensity of an application
system to make errors
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— GAS applications must be managed
properly like the development and
implementation of any piece of software.
The following phases should be managed
carefully:
‡ Feasibility analysis and planning
‡ Application design
‡ Coding and testing
‡ Operations, evaluation and
documentation of results obtained from
the GAS application
 


— Industry-specific audit software is audit
software that has been designed to
provide a high-level commands that invoke
common audit functions needed within a
particular industry
— It may run only on a limited set of
hardware / software platforms
— Moreover it may have been developed to
access data maintained by a specific
application package that is widely used
within the industry
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— Auditors might — Includes most function
sometimes use of GAS
high level — Sometimes more user
languages such friendly
as fourth — More powerful statistical
generation functions
programming — Better support from IT
languages and staff
statistical — Widespread deployment
of microcomputers,
software to gain Windows and internet
access to data contributes to increased
and manipulate it use
 



— Reasons for developing specialized audit
software
‡ unavailability of alternative software
‡ functional limitations of alternates
‡ efficiency considerations
‡ increased understanding of systems
‡ opportunity for easy implementation
‡ increased auditor independence and
respect
— Development and implementation of
specialized audit software
 
 

 

   
— This versatile tool is useful for any type of file
interrogation and offers users the benefits of this
and other functionality:
‡ document the analysis plan and progress in a To-
do List
‡ import data from a wide range of file types
‡ create custom views of the data and create
reports
‡ perform analyses of data including calculation of
comprehensive statistics, gap detection, detection
of duplicates, summaries, and aging
‡ conduct exception tests of unusual or inconsistent
items using simple or complex criteria
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— V
 has more than 80 built-in functions for
arithmetic, text, and date criteria, including many
new financial functions
‡ perform calculations
‡ select samples using systematic, random,
attribute or monetary unit techniques
‡ match or compare different files
‡ create pivot tables for multi-dimensional analysis
‡ generate automatically a complete History
documenting the analysis
‡ record or create macros with a customizable VBA
compatible scripting tool, V
cript


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— Offers the user an exciting new way

to view and review work done on a
project.
— Provides a graphical overview of all
the actions performed within a
Working Folder or IDEA Server
project, including the creation,
deletion, and modification of
databases as well as recording all
actions performed
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— Offers you an easy way of automating your
tests and reports by creating macros ² no
programming required!
— You can create or edit your script using the
normal IDEA dialogs the visual
representation of IDEAScript
— The benefit of Visual Script is that it allows
you to automate tasks that you perform
repeatedly without writing any code or
programming
— If required, you can then convert your Visual
Script into an IDEAScript
It¶s simple to edit a Task in a Visual Script. Simply select the task in the Visual
Script Editor window, then select Rask >
dit. The dialog box for the selected task
will appear and you can make your desired changes.
 
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— Only shows certain transactions that I
might be interested in. (i.e. Filter out the
³static´ inherent in large databases.)
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— Puts the data into an order that is easier
to analyze (e.g. Aged Accounts
Payable).
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— Average value, standard deviation,
highest/lowest value, etc.
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— Used when we have pre-numbered forms
or transactions.
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— Used in situations when duplicates
should not occur.
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— We all use aged A/P and A/R listings
— AGE function can calculate the number of
days between two date fields
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— Can be used to test for and detect errors in
accounting software
— But, can also be used to detect outside
intervention into an otherwise okay system
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— Counts the number of unique values in a
selected character field(s) and the
corresponding totals of other numeric
fields
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— Similar to CLASSIFY, but sorts data by
specified field and provides a detailed
listing of transaction information for all
records in that classification
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— Groups transactions into specified ranges of

values (strata)
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— ]OIN combines data from two databases into a
single database
— DEFINE lets you specify the relationship of
interest
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— Trend analysis looks at historical trends
that data exhibit.
— Regression analysis uses historical data
to predict what future values will be.
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IDEA Server provides enterprise level data

analysis, with the ability to effectively process
huge files, while maintaining the familiar, easy
to use IDEA interface. IDEA Server is fully
scalable in a fault tolerant and load balanced
environment.
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IDEA Smart Analyzer - Financial is a collection

of basic audit tests and reports that can be run
by any auditor with a minimum amount of
training. IDEA Smart Analyzer - Financial is
installed within IDEA with full online help and
easy to follow dialog boxes, making it a simple
task to deploy within your firm or audit
department.

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A revolutionary tool that will enhance

your network security controls.
Network log files are so large and
full of extraneous data that key
information is often overlooked.
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The DART (Data Archiving Retention Tool)

Import Component for IDEA Version Seven
eliminates the need for the usual extensive
programming efforts necessary for extracting
data out of SAP for import into IDEA.
Inexpensive and efficient method to get the
data out of SAP and IDEA. Eliminates
expensive programming efforts
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— Meet Current Audit Standards
‡ International audit standards and standards in most
jurisdictions require the auditor to test system
controls and examine supporting documentation.
With the increase in transaction volume arising from
computerized records, auditors are not able to
properly perform their work without using some form
of software tool for analysis.
— Improve Risk Assessment
‡ Analytical procedures ² use the Pivot Table,
Summarize and Stratification analysis functions to
obtain greater insight into the client's business. Use
Correlation, Time Series and Trend Analysis
techniques to analyze business activities.
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— Uncover Fraud and Money Laundering
‡ Find inconsistent data; easily identify unusual
transactions (round numbers, odd transaction dates),
perform matches across files (e.g. payroll and vendor
addresses), expose circumvention of approval policies
(e.g. large number of transactions just below approval
thresholds).
— Recover Costs
‡ Find duplicate payments, missing invoices; improve tax
compliance ² avoid penalties and overpayments.
— Identify Control Issues
‡ By performing simple-to-construct exception testing you
can spot internal control weaknesses and provide
recommendations to your clients or employer for
improvements.
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