Analytical Review Procedure Software

Version 2.30 released

17 Sep 2010 01:01:02 GMT

General

40+ easy to perform audit procedures

Audit software can be used to analyze and audit data in Excel workbooks, Access databases, text files, etc. Those familiar with Windows software can become more productive when auditing data using familiar templates and forms. Audit Commander is menu driven and does not use a command language. The guides below describe the procedures in detail. This audit software is free for educational, governmental or not for profit use. Anyone can download a free, fully functioning evaluation copy of the software for thirty days.

Audit tests include basic population statistics, data stratification, checks for gaps in numeric sequences, testing for federal holidays, classifying transaction dates by day of week and tests using Benford's Law.

Cost recovery procedures include identification of potential duplicate invoice payments.

Data extraction includes a comprehensive suite of functions to enable the auditor to focus on the specific data relevant for the procedure.

Fraud and error detection includes a variety of tests designed to highlight"outliers" as well as detect potential duplicates using either the "same, same, same" test or "same, same, different".

Analytic review procedures include various linear regression tests.

Examples of input forms and charts produced are shown below.

Inventory counts shown in the chart below indicate that they are not what would be expected using Benford's Law.

The system is menu driven and uses drown lists and "fill in the blank". The form below is used to obtain summarizations. (Note that the input data does not need to be pre-sorted).

Electronic Audit Programs

17 Sep 2010 00:57:43 GMT

Audit programs

	Many audit programs include steps whose objectives require data analysis. Often that analysis will require the application of analytical software using data from the system being audited. Many times a wide range of analytical procedures will be included within a variety of audit steps. Although each audit step describes the audit objectives along with the underlying reasons for accomplishing the objectives, the audit program does not necessarily describe exactly HOW the analytical procedure can be performed. Typically an audit program will be used by many different auditors, each with different levels of computer skills and experience. Historically, audit program steps involving data analysis can require significant time and resources to accomplish.
	Electronic audit programs represent an enhancement to the traditional audit programs. This is because not only do they include the same information as the traditional audit program, but they also provide a means where the audit program step can be performed using pre-established processing instructions for the computer. These instructions can be established by the auditor using specialized audit software.
	As a simple example, suppose that the audit program of payables contains a step to total all payments made by a specified region (state) and sub-total them by supplier. This process involves both data extraction (payments made by region) and summarization (totals by supplier).

Duplicate Payments

17 Sep 2010 00:56:03 GMT

Duplicate Payment Detection

Cost recovery from identification of potential duplicate payments can represent significant value provided by an Internal Audit (or other) function. Such projects can be undertaken in house or outsourced cost effectively.

Generally there are two key components of such projects:

Identification of potential duplicate vendors
Identification of potential duplicate payments

Recommended Methodology

There should be a systematic approach that applies both “fuzzy� and “exact� match logic to all reasonable combinations of the four key elements of paid invoices �

Vendor number
Invoice number
Invoice amount
Invoice Date

Often the key underlying reason for duplicate payments is that duplicate vendors have been established. Thus, the first step in the analysis is to identify any instances of duplicate vendors, in order that they will be considered as one, for purpose of searching for duplicate invoice payments.

Audit dashboards

19 Apr 2009 19:30:59 GMT

Audit Dashboards

Audit Commander™ can be used to analyze and audit data in Excel workbooks, Access databases, text files, etc. Audit Commander is a CAAT, menu driven, and does not require a command language. The button "documents" to the left has links which describe the procedures in detail.

**Example Charts produced**

Dashboards

Charts and dashboards can effectively support both monitoring and audit analysis. For details on how they can be easily constructed, click on the chart above.