Quantitative Analysis - PAD 713 Information Technology Group Project

Quantitative Analysis Group Term Paper Project PAD713 – Information Technology Professor Adam Wandt Burke, Emma Graham-Wright, Concynella Sroczynski, Janusz Zobrist, Zachary: 

Quantitative Analysis Group Term Paper Project PAD713 – Information Technology Professor Adam Wandt Burke, Emma Graham-Wright, Concynella Sroczynski , Janusz Zobrist , Zachary

Quantitative Analysis: 

Quantitative Analysis “A business of financial analysis techniques that seeks to understand behavior by using complex mathematical and statistical modeling measurement and research.” – Quoted from www.investopedia.com

Financial Auditing: 

Financial Auditing Presents an accurate account of an entity’s financial transactions. Entity’s accounting process is verified both internally and externally. It’s purpose is to Render an audit opinion, and Assure the users of such opinion that the entity is accurate, compliant, and transparent.

Sarbanes-Oxley Act (SOX) of 2002: 

Sarbanes-Oxley Act (SOX) of 2002 Senior management of publicly traded companies personally responsible for accuracy of their financial reports. Requirement to establish a system of proper internal controls. “Cascade effect” of the legislation.

The Bramm-Leach-Bliley Act (GLBA) and Basel II: 

The Bramm -Leach-Bliley Act (GLBA) and Basel II Protect the confidentiality of personal financial information. Defines banking process as aimed at internal control, risk management, and assurance.

Traditional Audit: 

Traditional Audit Involves random sampling of a much larger data. Can be applied in external auditing quite effectively. If applied to internal auditing, its accuracy, validity, and value to the top management can be questionable.

Computer Assisted Auditing Tools (CAATs): 

Computer Assisted Auditing Tools (CAATs) Invaluable tools in delivering services required of the auditors. Analyze the entire data set. Provide real-time monitoring of the entity’s operations. Deliver results in seconds. Can be used in external and internal auditing.

CAATs and GAS: 

CAATs and GAS Generalized Audit Software (GAS) as the most popular version of CAATs. GAS software packages are able to handle a heavy workload with the folcus on fraud and testing of internal controls as required by SOX 2002. GAS provides an answer to the contemporary challenges faced by the auditors. The following are the most popular packages of GAS: Audit Command Language (ACL), Interactive Data Extraction and Analysis (IDEA), Statistical Analysis System (SAS), and CorpSystem ActiveData .

Audit Command Language (ACL) Software Solutions: 

Audit Command Language (ACL) Software Solutions Manufactured by the ACL Services LTD. ACL Desktop/Network Edition ACL Server Editions Direct link for SAP ERP ACL AuditExchange and ACL Continuous Controls Monitoring Solutions

ACL Desktop/Network Edition: 

ACL Desktop/Network Edition A PC based application Analyzes 100% of data Does not alter the original source data Access the source data from multiple sources and platforms Easy to operate

The ACL Server Edition: 

The ACL Server Edition Utilized in connection with the ACL Desktop Installed on the audited entity’s server Does not change or alter the source data Compatible with: For Windows Server: DB2, Oracle, SQL Server For z/OS: DB2, IMS

ACL DirectLink: 

ACL DirectLink Interface to SAP ERP Improves the SAP data access Quickly and very securely retrieves data Retrieved data automatically translated to language of ACL main application Does not alter the data Includes the “metadata browser.”

ACL AuditExchange: 

ACL AuditExchange An “analytic platform for audit.” Comprised of the centralized audit repository Requires creation of an AuditExchange server Requires installation of an AuditExchange software on the users’ PCs No need for the actual data extraction.

The ACL Continuous Controls Monitoring Solutions: 

The ACL Continuous Controls Monitoring Solutions Provides a continuous and real time monitoring of transactions. Immediately notifies the management about suspicious activity. Provides the summarized findings/results of the performed analytics of detected control breaches. Runs its analytic tests on the original data that originates in various sources and formats (ERP, CRM, SCM, Legacy)

Interactive Data Extraction and Analysis (IDEA): 

Interactive Data Extraction and Analysis (IDEA) Designed by auditors, for auditors. More interactively used by companies worldwide. Since its introduction its usage remains strong.

Usage: 

Usage Sixteen different languages and ninety countries. All industries, sectors, and universities. User friendly.

Features and Functions: 

Features and Functions Over eighty built in functions. Read only access.

Improving Auditor’s Work: 

Improving Auditor’s Work High speed. Effective and efficient.

Implementing Data: 

Implementing Data Servers Task Management Task Server Smart Analyzer

System Requirements: 

System Requirements Windows server 2003, 2000 Sp4, Database: SQL Server 2000 or 2005, Pentium 4, 1.6 Ghz , 1 GB RAM 60 GB Disk Capacity

CorpSystem ActiveData: 

CorpSystem ActiveData Produced by CCH, owned by Wolters Kluwer. CHH founded in 1913, and based in Reverwoods , IL. CHH produces several lines in addition to CorpSystem : ProSystem fx Suite IntelliConnect Accounting Research Manager US Master Tax Guide

Interface: 

Interface Primary interface is Microsoft Excel Additional drop-down menu in Excel Makes for a substantially lower learning curve than other products on the market. Also integrates with CorpSystem Workpaper manager.

Features: 

Features Can perform 70 functions to help analyze data within Microsoft Excel. Supports one million rows of data. Functions include: Merge, match, compare, query, tag, select rows, sort summarize, sub-total, split, sample, stratify, analyze duplicates, and detect gaps.

Implementation: 

Implementation Functions inside Microsoft Excel Easy to use for users already familiar with Microsoft Excel. “Out of the box implementation.”

Statistical Analysis System (SAS): 

Statistical Analysis System (SAS) Leader in business analytics software and services Largest independent vendor in the business intelligence market Since 1976 has been giving customers around the world the Power to Know

Features and Functions: 

Features and Functions SAS fights fraud in five areas: Banking Insurance Government Healthcare Supply Chain

SAS Benefits Government: 

SAS Benefits Government SAS can help government detect fraud in the following ways: Improve data effectiveness Improve audit and investigation effectiveness Improve program effectiveness and monitor fraudulent activity.

Key Aspects of Fraud and Financial Crimes Software: 

Key Aspects of Fraud and Financial Crimes Software Data Integration and ETL Data Cleansing and Enrichment Advanced Analytical Capabilities SAS Strategy Management

PowerPoint Presentation: 

ACL IDEA SAS ActiveData Platform Stand-alone or Server Stand-alone or Server Stand-alone or Server Functions in Excel Functions Aging data; Append/merge data; Calculated field functions; Cross tabulate; Export results to other formats; Analyze duplicates; Sample; Extract/filter data; Find gaps; Index/sort data; Join/relate data; Statistics; Stratify; Summarize; Logs actions Log actions; Import/Exports data to large mainframe computers and accounting software; Compare data; Join data; Append data; Extract specific items; Identify gaps; Identify duplicates; Summarize; Stratify; Aging; Sampling; Read-only option Identify duplicate information; Standardize data; False positive validation; Parse values; Data modeling; Data mining; Text analytics; Forecasting; Optimization; Simulation; Find Gaps; Stratify; Summarize; Join Data Merge, match, compare sheets; Query, tag, select rows; Sort, summarize, sub-total, split, sample, and stratify; Analyze duplicates and select gaps; Top and bottom performance analysis; Query in MS Excel; Publish reports in Excel Types of Data Flat files, MS Excel, MS Access, ODBC, dBase, Adobe PDF MS Excel, MS Access, Accounting Software, Mainframe computer data, HTML Data, ODBC Flat files, MS Access, Ms Excel, MS SQL Server, ODBC, AS400, IBM DB2/UDB, Oracle MS Excel Data Alteration Ability No Yes Yes Yes Ease of Use Training Required Training Required Training Required None for users familiar with MS Excel Required Software Stand-alone except for Server Editions Stand-alone except for Server Editions Stand-alone except for Server Editions MS Excel Year Developed 1987 1985 1976 Developing company (CCH) in 1913, but unable to find development year for software