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CBS Data Analysis

with
CATT Tool – IDEA
by
CA. Mukesh Saran

Webcast by PDC of ICAI


On 02-06-2015 from
Lucknow branch of CIRC of ICAI
What is IDEA
• IDEA is a CAAT tool
• IDEA – Interactive Data Extraction and
Analysis
• Product of Caseware Idea Inc., Canada
• Dedicated software for data analysis
CAAT Tool IDEA – how to Get
• ICAI publication
– Data Analysis for Auditors – Practical Case
Studies on using CAATs (ISBN # 978-81-8441-172-
0). Having CD of Demo Copy of IDEA software V-
8.0
• With demo version you can import 1000 rows of data
• Request for Demo copy at website of
Caseware Idea Inc., Canada
Why IDEA
• Simple and intuitive interface
• Menu driven functions rather than command driven functions
• Ease of data extraction
• The ability to access a wide variety of data files from different
platforms
• Ease of data analysis
• Simplified query building
• Comprehensive logging features with ‘read’ rights only -
unalterable
• Easy template creation
• Convenient template recall and use
• Ease in automation of tasks
• Simplicity in scheduling of automated tasks for continuous
monitoring”
Stages in the Use of CAATs
• Identifying the audit objectives and areas for
the use of CAATs
• Determining the data required and arranging
the download
• Importing data
• Reconciling data
• Working with the data imported: Use of
Functions and Scripts within the CAATs
• Reviewing of results and housekeeping
Examining Data and Isolating
Specific Items
• Data once imported can be examined and reviewed
in IDEA through
– Indexing
– Sorting
– Grouping of Records
– Go To
– Find
• Isolating specific items can be accomplished in IDEA
through
– Display of Data
– Extraction of Data
Identifying Exceptions and
Irregularities
• IDEA includes two key functions to identify
exceptions, irregularities, anomalies and
errors. These are:
– Duplicate Detection
• look for duplicates in and up to 8 fields
– Gap Detection
• can be deployed on numeric, character and date fields.
Profiling Data
• The Tool offers three key functionalities for
Business Analysts:
– Summarization
• to obtain and view a macro consolidated position
– Stratification
• a range or interval based consolidation of data.
– Pivot Table
• a cross-dimensional 2-D analysis of data
Working with Multiple Files
• IDEA offers the following techniques for
working with multiple files:
– Visual Connect
– Join
– Append
– Compare
• These techniques allow the user to combine
multiple files conveniently for analysis and
review
Sampling
• Sampling in IDEA is broadly statistical and
probability-based.
• The probability-based sampling techniques are:–
– Systematic
– Random
– Stratified Random
• The statistical sampling techniques are:-
– Attribute
– Classical Variable
– Monetary Unit
Field Manipulation
• Field Manipulation can be used within IDEA to
view field definitions, add or delete fields,
change field properties such as field name and
type, or add tags (field templates) for the
Smart Analyzer Financial component within
IDEA.
• Field Manipulation within IDEA can be
performed through Virtual Fields and Editable
Fields.
Importing various Data File
Formats
• IDEA integrates and connects seamlessly with the following
Data file formats:
1. Microsoft Excel
2. Microsoft Access
3. ASCII (Text) Fixed Length
4. ASCII (Text) Delimited (including Comma Separated Value)
5. EBCDIC Fixed Length
6. Print Report and Adobe PDF files
7. XML
8. SAP/AIS
9. dBASE III and IV
10. Lotus 1-2-3 (.wk1, .wk3, .wk4)
11. AS400
12. Proprietary Accounting Packages
13. ODBC
Working with Application
Softwares
• CAAT – IDEA is a robust, time-tested, stable, data
analytical tool. IDEA has evolved steadily to integrate
conveniently and seamlessly with well-known
Application Softwares worldwide.
• IDEA connects well with
– SAP and SAP Flat Files from the Manufacturing Industry
– Core Banking System – Finacle from the Banking Industry
– Web Based Application Systems – Sabre from the Airlines
Industry
Application of CAATs to Banks
• IDEA is useful in most areas of banking. The
following tests cover a variety of account
types:
– Calculation, Analysis
• Cast (or total) ledgers.
• Cast (or total) account balances.
• Cast (or total) accrued interest.
• Perform interest calculations.
• Check calculation of bank charges.
• Reprove arrear calculations and reporting (loans).
• Prove interest capitalization
Application of CAATs to Banks
– Exception tests
• Identify accounts with missing standing data.
• Identify invalid or unusual standing data.
• Identify dormant accounts and transactions
• Identify accounts with statement suppression
• Check charges are being raised where appropriate
• Identify staff loans
• Identify large loans
• Test for unusual interest rates
• Identify loan balances greater than original advance
Application of CAATs to Banks
– Exception tests (contd.)
• Identify negative balances
• Identify forward dated transactions
• Provide totals of forward dated transactions
• Identify overdue maturities
• Identify customers over their overdraft limit or
customers with expired limits
• Perform currency conversions
• Provide details of currency exposure
Application of CAATs to Banks
– Matches and Compares
• Multiple loans to the same address by setting up a key
based on the address and using duplicates test
• Match addresses of loans to employee addresses
• Compare balances at different periods to identify
movements.
Credits
• Tutorials of CaseWare IDEA Inc.
469 King Street West, 2nd Floor
Toronto, CANADA
M5V 1K4
(www.CaseWare-IDEA.com)
• ICAI publication
– Data Analysis for Auditors – Practical Case
Studies on using CAATs
Thanks
from
CA. Mukesh Saran
M.Com., FCA, DISA(ICAI)
Lucknow
saranfca@gmail.com