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Use of Technology (ACL) inUse of Technology (ACL) in

AuditsAudits


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AgendaAgenda

Overview of Generalized Audit SoftwareOverview of Generalized Audit Software

How to Get StartedHow to Get Started

Getting asic !ile "nfor#ationGetting asic !ile "nfor#ation

Loo$ing for Ano#aliesLoo$ing for Ano#alies

%etailed Transaction Analysis%etailed Transaction Analysis

&'a#le *rocure#ent Card Case Study&'a#le *rocure#ent Card Case Study


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OverviewOverview

What does it do?What does it do? Allows auditors to e'tract and analyze dataAllows auditors to e'tract and analyze data

indeendent of rogra##ers and auditeesindeendent of rogra##ers and auditees

Su##arizes large a#ounts of dataSu##arizes large a#ounts of data +,,- testing of large oulations+,,- testing of large oulations

"ncreases ro.a.ility of detecting errors and"ncreases ro.a.ility of detecting errors and

o#issionso#issions

"ncreases ro.a.ility of detecting fraud"ncreases ro.a.ility of detecting fraud


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Getting StartedGetting Started

Know Your Data!Know Your Data! /now where to get it/now where to get it

*latfor# (*C0#ainfra#e0other) and for#at*latfor# (*C0#ainfra#e0other) and for#at

1uantity and e'tract otions1uantity and e'tract otions

/nowledgea.le staff/nowledgea.le staff /now what it should loo$ li$e/now what it should loo$ li$e

"#ortant fields"#ortant fields

Statistical e'ectationsStatistical e'ectations

Chec$ $ey fields for validityChec$ $ey fields for validity2u#eric 0 alhanu#eric2u#eric 0 alhanu#eric lan$ 0 non3.lan$lan$ 0 non3.lan$

4alid codes4alid codes


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Get asic "nfor#ationGet asic "nfor#ation

Generate su##aries and statistics on $eyGenerate su##aries and statistics on $ey

fieldsfields

5ecord count5ecord count

Totals and $ey su.totalsTotals and $ey su.totals

Average6 #a'i#u#6 #ini#u# valuesAverage6 #a'i#u#6 #ini#u# values

5un 7overview8 reorts (Classify65un 7overview8 reorts (Classify6

Su##arize)Su##arize)


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Loo$ for Ano#aliesLoo$ for Ano#alies

&'cetion reorts&'cetion reorts Statistical deviance and digital analysisStatistical deviance and digital analysis

enford9s Lawenford9s Law

5ounding of a#ounts5ounding of a#ounts &ven dollar a#ounts&ven dollar a#ounts

Stuff to Read:Stuff to Read:

www:ute'as:edu0ad#in0audit0files0www:ute'as:edu0ad#in0audit0files0

Using Audit ToolsUsing Audit ToolsCase StudiesCase Studies

%igital Analysis%igital Analysis


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%etailed Transaction Analysis%etailed Transaction Analysis

&'tract 7susect8 records for review&'tract 7susect8 records for review

Select statistically valid sa#le for reviewSelect statistically valid sa#le for review

and e'tractand e'tract


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ACL &'ercisesACL &'ercises

Go to;Go to;

www:ute'as:edu0ad#in0audit0files0www:ute'as:edu0ad#in0audit0files0

%ownload all files:%ownload all files:

OenOenCARDUSE.ACLCARDUSE.ACL

using ACL


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&'a#le&'a#le

*rocure#ent Card !raud*rocure#ent Card !raud

ac$groundac$ground !iscal =ear >,,, Audit *lan Sot Chec$!iscal =ear >,,, Audit *lan Sot Chec$

*rocure#ent Card *rogra# !iscal =ear ??*rocure#ent Card *rogra# !iscal =ear ?? !ollow u to +??@ audit!ollow u to +??@ audit StatisticsStatistics

Over ,, deart#ents and +6B, cardsOver ,, deart#ents and +6B, cards

>+6,,, transactions (through D0+0>,,>)>+6,,, transactions (through D0+0>,,>)

(@6EB in !=,+6 B6DD? in !=,> through D0+)(@6EB in !=,+6 B6DD? in !=,> through D0+)

FE+:FE+:

(F+>:, in !=,+6 F?: in !=,> through D0+)(F+>:, in !=,+6 F?: in !=,> through D0+)


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O.taining %ata for AnalysisO.taining %ata for Analysis

Card %ataCard %ata

Transaction %ataTransaction %ata

erchant Classeserchant Classes

Accounting0*ay#ent %ataAccounting0*ay#ent %ata

%ata fro# an$ of A#erica%ata fro# an$ of A#erica

%ata fro# UT Accounting Syste#%ata fro# UT Accounting Syste#

erged Transactionerged Transaction%ata !ile in ACL%ata !ile in ACL


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%ata Analysis Using ACL%ata Analysis Using ACL

Su##aries StatisticsSu##aries Statistics High volu#e cardholdersHigh volu#e cardholders

High dollar cardholdersHigh dollar cardholders

High volu#e #erchantsHigh volu#e #erchants

High dollar #erchantsHigh dollar #erchants

&'cetions Ano#alies&'cetions Ano#alies *olicy violations*olicy violations

Other unusual transactionsOther unusual transactions


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Created reorts .ased on #erchant class code toCreated reorts .ased on #erchant class code to

identify unusual tyes of urchasesidentify unusual tyes of urchases

"nternational ite#s"nternational ite#s Clothing storesClothing stores *ets*ets

GasGas !lowers!lowers icycle shoicycle sho

GiftsGifts CharitiesCharities SchoolsSchools

&Iui#ent 5ental&Iui#ent 5ental CollegesCollegesTravel3relatedTravel3related*ostal Service*ostal Service Utilities (including telehone services)Utilities (including telehone services)

"nternet"nternet Grocery storesGrocery stores

TransortationTransortation AntiIuesAntiIues

*olicy 4iolations*olicy 4iolations

Type of PurchaseType of Purchase


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Other *olicy 4iolationsOther *olicy 4iolations

and Unusual Transactionsand Unusual Transactions Transactions over F???:,, li#itTransactions over F???:,, li#it

Slit Orders Slit Orders #ultile transactions to single#ultile transactions to singlevendor on single day with total a#ount overvendor on single day with total a#ount over

F???:,,F???:,,

&ven dollar a#ounts&ven dollar a#ounts

Sales ta' aid to Te'as #erchantsSales ta' aid to Te'as #erchants


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atch Susect Transactionsatch Susect Transactions

to Accounting 5ecordsto Accounting 5ecords Co#licated account ostings and transfersCo#licated account ostings and transfers

.etween accounts.etween accounts atched dollar a#ounts and dates usingatched dollar a#ounts and dates using

ACL9s %ulicate function to identifyACL9s %ulicate function to identify#ove#ent of funds .etween accounts#ove#ent of funds .etween accounts

Scrutinized electronic routing and arovalScrutinized electronic routing and aroval

of electronic ay#ent docu#ents to identifyof electronic ay#ent docu#ents to identifywea$nesses in segregation of duties and0orwea$nesses in segregation of duties and0orinsufficient account0transaction reviewsinsufficient account0transaction reviews


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"nitial "nvestigation"nitial "nvestigation

5eviewed &'isting 5eorts5eviewed &'isting 5eorts

5an Additional 5eorts 3 Single Card Use5an Additional 5eorts 3 Single Card Use

Collection of 5eceitsCollection of 5eceits

eeting with *rincial "nvestigatorseeting with *rincial "nvestigators

*ersonnel Actions*ersonnel Actions

Secure &lectronic Hardware0 !iles0 etc:Secure &lectronic Hardware0 !iles0 etc:

Coordination with *olice and %istrict Attorney9sCoordination with *olice and %istrict Attorney9sOfficeOffice

Arrest of su.JectArrest of su.Ject


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Co#ilation of &videnceCo#ilation of &vidence

*ro.le#s*ro.le#s

Card Use (+,0?@ 3 E0,,)Card Use (+,0?@ 3 E0,,)

K Transactions; +6E,Transactions; +6E,

K 4olu#e; F>,?6E,4olu#e; F>,?6E,

*ost E0?? 5eceits %estroyed (BD-)*ost E0?? 5eceits %estroyed (BD-)

Co#licated Account *ostingsCo#licated Account *ostings

2u#.er0Tye of 4endors2u#.er0Tye of 4endors


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AroachAroach

%ocu#ent &ach Transaction%ocu#ent &ach Transaction

&valuate Source %ocu#ents;&valuate Source %ocu#ents;

K Original receitOriginal receit

K 5eceit coy 3 On reIuest or .y su.oena5eceit coy 3 On reIuest or .y su.oena

K 4endor we. sites 3 order history account info4endor we. sites 3 order history account info

K &3#ail urchase shiing confir#ations&3#ail urchase shiing confir#ations


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Case "Case "

5eceits5eceits

Online order historyOnline order history

ail confir#ationsail confir#ations

5eturns for credit on5eturns for credit on

ersonal cardsersonal cards

Case ""Case ""

5eceit with forgery5eceit with forgery

Online order historyOnline order history

ail confir#ationsail confir#ations


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Case " 3 5eceitsCase " 3 5eceits

C " 5 iC " 5 i


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Case " 3 5eceitsCase " 3 5eceits

li d i


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Case " Online Order HistoryCase " Online Order History

C il


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Case " ailCase " ail

Confir#ationConfir#ation

C " 5 tC " 5 t


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Case " 5eturnsCase " 5eturns

Order

Return

Credit

C iC "" 5 i


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Case "" 5eceitCase "" 5eceit


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Case "" 5eceitCase "" 5eceit


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Control "ssuesControl "ssues

Searation of %utiesSearation of %uties

Sharing of *asswordsSharing of *asswords

Account 5econciliationsAccount 5econciliations

ini#al Account 5eviewsini#al Account 5eviews


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Corrective StesCorrective Stes

Letters to %eans6 %irectors6 *rincialLetters to %eans6 %irectors6 *rincial

"nvestigators6 etc:"nvestigators6 etc:

!ollow3u Confir#ations to Hierarchical!ollow3u Confir#ations to HierarchicalGrousGrous

"#rove#ent of Control Structure"#rove#ent of Control Structure

On3going *art of Co#liance *rogra#On3going *art of Co#liance *rogra#


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"#rove#ent of"#rove#ent of

Control StructureControl Structure


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On3going Co#liance ActivitiesOn3going Co#liance Activities

"nclusion in Co#liance 4erification"nclusion in Co#liance 4erification

Syste#Syste#

Arovals of #onthly vouchersArovals of #onthly vouchers

1uarterly reviews using ACL1uarterly reviews using ACL


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1uarterly ACL 5eviews1uarterly ACL 5eviews

Card Use 5eortsCard Use 5eorts

5an$s .y F a#ount5an$s .y F a#ount

5an$s .y transactions5an$s .y transactions


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Card Use Su##aryCard Use Su##ary


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Co#liance0iscellaneous 5eortsCo#liance0iscellaneous 5eorts

Transactions M F???:,,Transactions M F???:,,

*otential Slit Orders*otential Slit Orders

*osting delays M , days*osting delays M , days


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Co#liance0isc: Su##aryCo#liance0isc: Su##ary


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Co#liance0isc: Su##aryCo#liance0isc: Su##ary


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Co#liance0iscellaneous 5eortsCo#liance0iscellaneous 5eorts

Transactions M F???:,,Transactions M F???:,,

*otential Slit Orders*otential Slit Orders

*osting delays M , days*osting delays M , days

College0%eart#ent Level 5eortsCollege0%eart#ent Level 5eorts


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erchant Su##ary 5eortserchant Su##ary 5eorts

High F erchantsHigh F erchants

77Susect8 erchantsSusect8 erchants

erchant Tyeserchant Tyes

Secific Card "nvestigations0


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*rocard 5eview *rocedures*rocard 5eview *rocedures

5eorts5eorts

Coordination with Other %eart#entsCoordination with Other %eart#ents

"nternal Audits"nternal Audits

*urchasing*urchasing

Accounts *aya.leAccounts *aya.le

!ollow3u!ollow3u

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