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. ICAI publication 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 CA. Mukesh Saran from M.Com., FCA, DISA(ICAI) Lucknow saranfca@gmail.com