Introduction to CaseWare IDEA - Designed by Auditors for Auditors

INTRODUCTION TO CASEWARE IDEA
DESIGNED BY AUDITORS FOR AUDITORS

AGENDA
• Introduction to CaseWare IDEA Inc.

ABOUT CASEWARE IDEA INC.
• Founded in 1988
• Industry leader in solutions for finance, accounting,
governance, risk and audit professionals
• Over 400,000 users of our technologies across 150
countries and 16 languages
• Customers include Fortune 500 companies, Global
500 companies, 9 governments of the 15 largest
economies

WHY DATA ANALYTICS?
1. Volume of transactions has increased
2. Absence of physical evidence (all electronic)
3. Regulatory focus on fraud and controls
4. Audit standards recommend using CAATs
5. Need to test 100% of transactions

WHY DATA ANALYTICS?
6. Pressure on costs and efficiency
7. Manage risks more effectively
8. Pressure from the auditees to use more analytics
9. Value added (methodology)

CHALLENGES
• Data acquisition
• Retrieving data from different software and ERP systems
• Lack of standards
• Skills
• Acceptance and mindset
• Fundamental change in audit techniques
• Changes in auditing standards
• Which manual tests can be replaced

AGENDA
• Introduction IDEA Data Analysis software

DATA ANALYSIS PROCESS
RETRIEVAL IMPORT
CLEAN
PREPARE
VALIDATE ANALYSIS REPORTING

DATA ACQUISITION
IDEA allows you to
import and export
data in a multitude of
formats, including
files originating from
large mainframe
computers and
accounting software
IDEA

GETTING/UNDERSTANDING DATA
• Import from CSV, Excel, PDF, Reports
• Import directly from accounting software
• Connectors to ERP
• Different format = TAGGING
• Participating in data standards
AIS
SAF-T
Audit Data
Standard
Audit Data
Collection

DATA ANALYSIS
Pivot Tables
Reports
Charts
Exports
History
Project Overview
Automate
Import from
virtually any
source – from
PDF to ERP
Extract • Sort • Search • Group
Calculated Fields • Stratify •
Summarize Age • Gaps
Duplicates • Sample Statistics •
Join • Append • Compare
1. Import Data 2. Perform Analysis 3. Review Results

AGENDA
• Case studies

CASE 1 - PAYMENTS
• Import
• Reconciliation / Field Stats
• Discover and Visualize the data
• Check on missing cheque numbers
• Check on duplicate cheque numbers
• Check on fuzzy duplicate suppliers
• Join with Authorization table
• Perform a stratified random Sample

CASE 2 – JOURNAL ENTRIES
• Import
• Exceptions (unbalanced entries)
• Summary by Accounts (sent to Working Papers)

CASE 3 - INVOICES
• Import
• Calculation accuracy
• Benford’s Law (Mark J. Nigrini PhD)

AGENDA
• Case studies
• Benefits of CaseWare IDEA Data Analysis software

 Complicated equations
 No data integrity
 User friendly interface
 Data integrity
 Enter a few values and receive a
result
Use the Age Band column as the column field in the Pivot Table.
The oldest (i.e., first) date should be older than the oldest record.
For simplicity, use “1” (1/1/1900) as the date. This will represent the
“X days +” band.
EXCEL VS. IDEA: AGING

 Not intuitive
 Can easily override values
 No drill down feature
 No custom graph
 User friendly
 Read-only access
 Drill down feature
 Custom graph
Frequencies predicted by Benford’s
Law for First Digit, Second Digit,
and First Three Digit tests.
EXCEL VS. IDEA: BENFORD’S LAW

EXCEL VS IDEA – DATA PROTECTION
With protected data, you can do the following:
 Duplicate Detection
 Apply Benford’s Law
 Summarization
 Stratification
 Gap Detection
 Quick Extraction
 Several Sampling Methods
 Key Extraction
 Advanced Statistical Methods
 Multitask
 Various Imports
 Structure Reports

WHY USE CASEWARE IDEA?
1. IDEA protects the source data by allowing read
only access to the client's data to avoid any
unwanted changes, and maintain data integrity.
2. IDEA creates a record of all changes made to a file
(database) and maintains an audit trail or log of
all operations carried out on a database,
including the import and each audit test.
20

3. IDEA can do the following:
• Compare, join, append, connect different files from
different sources
• Extract specific transactions, identifies gaps (e.g. check
number) or duplicates
• Profile data by summarizing, stratifying or aging the files
• Create useful File Statistics automatically
• Create samples using several different sampling
methods
21

4. IDEA allows you to import and export data into a
multitude of formats, including files originating
from large mainframe computers and accounting
software.
5. Allows you to easily manage your files and results
and shows the source of your results
6. IDEA can read and process millions of records in
seconds. There is no limit to the number of
records that IDEA can process.
22

Change can be difficult for anyone.
Inventor Charles Kettering once said, “The
world hates change, yet it is the only thing that
has brought progress.” (IIA GTAG16)

SUMMARY: BENEFITS OF USING IDEA
1. Work more efficiently
... lower your costs
2. Work more effectively
… add more quality
3. Improve your capabilities
… add more value

INTERESTED IN A DEMO OF IDEA?
Contact us at salesidea@caseware.com to
schedule a demonstration

INTRODUCTION TO CASEWARE IDEA
DESIGNED BY AUDITORS FOR AUDITORS
Visit casewareanalytics.com
Email salesidea@caseware.com

Introduction to CaseWare IDEA - Designed by Auditors for Auditors

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