Duration
2 days
INTRODUCTION
Almost all successful and solid-ground investigation are done with effective document review and data analysis. In the business world where complex documentation and information systems are common, the days for auditor to rely on traditional vouching and ticking for signature to discover fraud or audit findings are long gone. Effective document review calls for a paradigm shift in looking at business transactions and documentation. It propels auditors to dig further and discover the true meaning of a signature, a piece of agreement, delivery order, expense form, invoice, board resolution, and so on. This course equips participants with the relevant document review skills to uncover true audit finding and fraud.
Intensive use of integrated systems that stored large financial and non-financial databases, audit and investigative review can hardly be conducted without data and digital analysis. Valuable evidence may be staring in the face of auditor and not be picked up if he or she does not know how to mine and connect seemingly unrelated data to make sense out of it. Knowing what tools are available to acquire digital evidence that is admissible to court and to use key word search in pile of emails and electronic files certainly is a must have skill for today’s auditors. This course will expose the participants to various data analysis techniques, tools and templates in the conduct of audit or investigation.
WHO SHOULD ATTEND
- Internal audit manager and audit director who wants to improve audit team effectiveness in audit or investigation via improve document review and data analysis.
- Internal auditor, forensic auditor and audit supervisors who want to learn how to effectively identify exceptions within any documents and data sets.
- Internal control coordinator and professional whose job require reviewing of documents and evaluate electronic data.
- Financial controllers, procurement manager and human resource managers whose job entail evaluation of documents such as tenders, quotation, agreement, CV, expense claims, etc.
- External auditors who are required to perform substantive testing.
LEARNING OUTCOME
On completion of this program participants will
- Acquire the overall concept of document review in auditing and investigation
- Be able to perform detail and effective document review
- Gain knowledge on common techniques of documentation fraud/ wrongdoing
- Acquire the overall concept of data analysis and basic digital forensic
- Gain insights of common techniques used in data analysis
- Be able to perform effective data analysis for targeted audit test/ scenario
COURSE OUTLINE
- Importance of Document Review & Data Analysis
- Getting evidence proving your audit/ investigation case - Mens Rea + Actus Reus
- Transgression Demonstration (5W1H)
- Deception Demonstration (Trends)
- Overview of Document Review
- Scientific vs Content Review
- Doc review in audit vs Doc review in investigation
- Common Accounting Documents
- P2P and O2C, Cash and Non-cash transaction
- Employee and government related
- Objectives of Documents Review
- Identification (Who, What, Where, When, How Much)
- “Head and shoulder, Knee and toes”
- Hand signature and system signature
- Forgery & Replicate (Copy & Paste)
- Non-conformation (What’s Wrong)
- Rules, facts, logic divergence (common w difference, vice versa)
- CAFÉ Findings (Creation, Alteration/Addition, Forgery, Erasure)
- Surefire 3 steps approach in document review
- Formatting, Content, Language, Physical (Internal)
- Rules, Facts, Logic (External)
- Black Swan - Absent of normal (Missing) & Present of abnormal (Extra)
- Data Analysis - Overview
- Understand system and ERP – Concept & Structure
- Area of concerns - System Security, Data Integrity, Data Analysis
- Data Analysis in auditing vs Data Analysis in Investigation
- Two main type of data analysis (data mining)
- Quantitative – Relationship, Fluctuation, Inference, profiling
- Qualitative – Contextual, Match, Inference
- 4 steps systematic approach in data analysis
- Set analysis objectives – what you want to test
- Get verified data – Get the correct data set
- Analyze the data – Do the test procedures
- Confirm the result – Type 1 or Type 2 error
- Common quantitative data analysis procedures
- Filter / Sort/ Join / Append/ Pivot/ Trend / Regression / Ratio
- Vlookup/ Eye-lookup/ Grouping/ Summarization/ Stratification
- Performing common data analysis tests in auditing/ investigation
- Payroll bank account tests
- Gap analysis (PO, DO, Inv, receipts)
- Invoices without PO, GRN
- GRN without PO
- Duplicate analysis (PO, Inv, bank account, JV)
- Fuzzy duplicate analysis (vendor address/ contact no)
- Transaction above limit (by person, by location)
- Transaction on Sunday/ Saturday/ After hours
- Inventory unit cost/ quantity below 0
- AR/ Inventory turnover days
- Show changes
- Performing common data Profiling and fraud investigation
- Frequency tests (by person, time, group)
- Intensity tests (most used value / least used value)
- High risk tests (round amounts/ exact multiples)
- Relative Size Factor (% second highest/ highest)
- Regression and Correlation tests (Travel days vs Amount claim)
- Benford law analysis
- Performing contextual qualitative data search
- Key words
- Content (file, picture)
- Behavior Profile
- Online presence & Social media
- Data analysis tool
- Basic tools
- Vendor-specific tools
- Monitoring software
- Digital forensic acquisition
- Social engineering
- Before Data analysis
- Critical thinking
- Logical reasoning
- Accounting and Commercial understanding
- Behavior science
- Beyond Data analysis & Document Review – What Next
- Finding confirmation
- Dig and determine root cause
- Develop Hypothesis
- Move on to interview and interrogation
Programme scope, delivery arrangements and suitability are confirmed during enquiry.