1. Analytics
Unleashing the power of the audit process
Manuel Coello
Continuous Auditing and Monitoring

2. Agenda
1. Project evolution
2. Establishing a Data Mart
3. An integrated approach
4. Use of CAATTs in Internal Audits
5. P2P – 20 power-packed analytics
6. Other Projects

3. Background
► Founded in 1843 and based in New Britain, CT
► Manufactures Tools and provides Security
Solutions
► 16,000 employees worldwide
► Grew revenue from $2.2B in 2003 to $4.5B in
2008
► Soon to become $9.5B with the acquisition of
Black and Decker

4. Project History Audit Exchange
- Team
Extraction collaboration
Process – Data
CAATTs Mart 150
considered as
Projections
required
95 97
Management
75
Sponsorship 68
42
29 34
27 21
19
9
Q4-08 Q1-09 Q2-09 Q3-09 Q4-09 Q1-10
Analytics Team

5. Establishing
a
Data Mart

6. Non-SAP
-Entry
- Vendor Payments
- Goods Receipt
Batch
- Purchase Orders
- Vendor Master
Process
ACL script
Audit Server
to import data
Web
Application
Email
Notification Audit
of exceptions Manual Downloads/
Exchange
Re
Outside Systems
Exceptions su
lts
posted in Re
sharepoint to su - Payroll
lts
drive
accountability Results
ACL scripts - T&E
- Credit Card
for testing

7. 7 day filter
File name
Example of an import script

8. Leverage
Tables
Script Invoice Imports

9. Scheduling

10. Integrated Approach
-Analysis
- Continuous Auditing
- Continuous Monitoring

11. How do we get there?
Continuous
Entity-wide involvement Auditing
Business involvement
Business Units
Wave 3
Business involvement Mercury
for Shared Services
Access SAP tables directly
Audit Exchange
Testing cockpit
Wave 2
Design advanced analytics Leverage BI/BW
Centralized testing
Execute recorded scripts ACL Directlink
Testing of automated
Processes controls
Scheduler
SAP training
Wave 1
SharePoint
Measuring Control effectiveness Collaboration with
AutoAudit SOX and E&Y
Infopack
ACL desktop Edition
Auditors following up on certain
exception reports
Technology
Documenting Resolution
Full time project manager
Metrics Audit Team
Transformation Map

12. CONTINUOUS TESTING OF CONTROLS AND RISKS
RESULTING IN:
TIMELY NOTIFICATION OF GAPS AND WEAKNESSES
IMMEDIATE FOLLOW UP AND REMEDIATION
How Test for Benefits
Errors - Cash recovery/
Based on
exception rules Duplication cost avoidance
Design scripts to Control - Drive business
be run periodically breakdowns performance
using an audit - Immediate
software Policy violations
remediation
Extract Fraud detection
- Support
transactions and Anomalies Compliance
perform analysis of
the full universe Unusual - Fraud
patterns deterrence

13. Planning Design Implementation Execution
Project Methodology
Determine Scope
Develop a Project Plan
Design Sharepoint Site Document process under
Evaluation of review
Technology Tools Gather requirements from Develop scripts
Analysis of IT key stakeholders Testing of scripts
landscape Prepare list of scenarios Develop testing
Preliminary discussion Define electronic data cockpit
with key stakeholders Execution of test
requirements Stakeholder script
Review download Training
Follow up on
procedures with IT Status meetings exception report
with stakeholders
Document results
Business Process in Sharepoint
Procedures
Update and report
results

14. Approach
► Look for volume, money, risk and opportunities
► Exceptions researched at the Controllership Level
► Partner with a SME in each area with an
executive sponsoring the review
► Only exception testing for users – not reporting
► One year data; exceptions strategically selected

15. Approach
► Why-why analysis focusing on root-causes
► Resolution of exceptions aggressively pursued-
remediation oriented
► No formal audit reports issued

16. Analysis
Overview Outliers Abnormalities Trends

17. Continuous Auditing/Monitoring
Payroll T&E P2P
1. Payments beyond 1. Duplicate expense 1. Duplicate Payments
termination date submissions
2. Old aged trade payables
2. Multiple changes in 2. Suspicious MCCs
3. Payment terms
merit increases
3. Even amounts
4. Duplicate vendors in
3. Unusually high salary
4. High Mileage Master File
increases
5. Unusual Items 5. Invoice prior to PO Date
4. Excessive overtime
6. Checks issued by AMEX 6. Split Purchase Orders
5. Multiple or unusual
bonuses 7. Split transactions 7. Vendors in OFAC list
6. Duplicate employees 8. Spending trends 8. Non-preferred vendors
(name/similar names)
9. Non-preferred vendor 9. PO price differences
7. Salary employees
10. High misc expenses 10. Purchases of even
without email account
numbers
8. Same bank account
and diff clock numbers
9. Employees and
vendors with the same
address/bank account
10. Employees without the
usual earnings or
deductions

18. CAATTs
Computer
Assisted
Audit Tools
and
Techniques

19. Audit Area Audit Test Audit Area Audit Test
Source-to-Pay Payroll
Payments Suspicious invoice sequence Payments Excessive merit increases and WIN awards
Invoices falling below approval limits More than one payment per period
Duplicate Payments - same vendor and invoice number Payments to same bank account with different names
Duplicate Payments - same invoice and amount paid to two
different vendor numbers Unusual bonuses
Duplicate Payments - same vendor, amount and invoice
date Employees without the usual deductions
Frequency analysis based on first two digits of payment
amount Pattern of continual overtime
Payments for even multiples Payments beyond termination date
Payments to employees Master File Duplicate/similar employee names
Payment runs on weekends Employees with incomplete fields
Audit sampling tool
Purchasing Purchases of unneded material (E&O inventory) Other
Purchase price unreasonably high (using price history)
Aged open Purchase Orders
Proper segregation of duties in risky financial areas (based
Payables Outstanding old debit memos System Access on GRC "rulebook")
Old open invoices Terminated employees with system access
Vendor Master Match employee and vendor bank accounts
Match employee and vendor addresses Fixed Assets Useful lives per SWK policy
Search of unusually incomplete fields in the Master File Recalculate depreciation
Payment terms not in compliance with DOA Completeness in Fixed Asset Subledger "fields"
Capitalization below threshold limits
Quote-to-Cash
Inventory Recalculate E&O analysis
Sales Sales price lower than price lists (price overrides) Recalculate usage data used for E&O
Credit analysis and trends Excessive inventory write offs (unusual trends)
AR Subledger Collectability analysis
Manual Journal Entries (rounded amounts, unusually large
Recalculate aging
General Ledger entries)
G/L and subledger reconciliation Rounded adjustments
Customer net credit balances Reversals
Excessive write-offs (unusual trends) Posting to "miscellaneous" accounts
Customer Master Customers exceeding credit limits
Match "key" words (e.g. government, General, etc.) to
Payment terms not in compliance with DOA FCPA payment and expense data
Countries or customers from government banned lists

20. CAATT
Repository
Aged for team
allows
open
payables
collaboration
ACL
Project

21. P2P
Power-packed
Analytics

22. Analytic: Duplicate Payments - Same vendor and
invoice number
VENDOR_NAME VENDOR AMOUNT_IN_DC
DOC__DATE TYPE REFERENCE
NORTHEAST UTILITIES 1000244 (1,052) 03/26/2008 XR 00207-0308 Same invoice processed twice. Error by typing
NORTHEAST UTILITIES 1000244 (1,052) 03/26/2007 KR 00207-0308 Same invoice processed twice. Error by typing
shipping to diff address,two
LANCET GLASS LTD 1001707 (1,283) 02/15/2007 XR 50394 invoice
shipping to diff address,two
LANCET GLASS LTD 1001707 (186) 06/29/2007 KR 50394 invoice
AUSTIN HARDWARE & SUPPLY INC 1004581 109 08/03/2007
Typo error in
KG 650246
diff credit date and
salesman,two invoice
date diff credit date and
AUSTIN HARDWARE & SUPPLY INC 1004581 (157) 07/12/2007 RE 650246 salesman,two invoice
bill payment, one for Aug. one
NATIONAL GRID 1014380 (844) 08/30/2007 RE 93009-0907 for Sep.
bill payment, one for Aug. one
NATIONAL GRID 1014380 (816) 10/02/2007 RE 93009-0907 for Sep.
Triple paid. Same bill entered
KONICA MINOLTA BUSINESS SOLUTIONS 1029660 (1,516) 08/15/2007 KR 4590557 with different dates
Triple paid. Same bill entered
KONICA MINOLTA BUSINESS SOLUTIONS 1029660 (1,516) 07/16/2007 KR 4590557 with different dates

23. Analytic: Duplicate Payments - Same vendor, date
and amount
TYPE VENDOR VENDOR_NAM REFERENCE AMOUNT_IN_
DOC__DATE BUSA
XR 1030888 SIFY LIMITED EXPIMS069 (11,892) 7/31/2008 0700
XR 1030888 SIFY LIMITED 0212254-IN (11,892) 7/31/2008 0700
XR 1035840 K & L Kaine Enterprise 508 (7,424) 7/4/2008 0700
XR 1035840 K & L Kaine Enterprise 608 (7,424) 7/4/2008 0700
KR 1011570 DIV OF WORKERS COMPENSATI INV011508 (4,138) 1/15/2008 0700
XR 1011570 DIV OF WORKERS COMPENSATI 48860-0108 (4,138) 1/15/2008 0700
RE 1015894 ALLIED WASTE 2001786263 (3,580) 9/30/2007 0719
XR 1015894 ALLIED WASTE 0742-001786263 (3,580) 9/30/2007 0719
XR 1011534 KFORCE INC 3247099 (2,349) 10/5/2007 0700
XR 1011534 KFORCE INC 3247099A (2,349) 10/5/2007 0700
Typo or
clerical errors

24. Analytic: Suspicious Vendors using the unbroken
invoice sequence
VENDNO Vendor Name Invoice in Sequence Invoices
Total % Invoices AMOUNT
4742 Wielaard Stellingsystemen 276 324 85% 207,876
7000010 Scan Modul MEDI-MATH B.V. 11 13 85% 107,802
2196 Scan Modul System 1237 1490 83% 5,602,788
2195 ByrumLabflex SA 352 450 78% 14,524,336
60000546 Garmt Design 3 4 75% 31,190
7000011 Scan Modul MEDI-MATH B.V.B.A. 18 26 69% 282,657
4894 VDL Home Tech 10 18 56% 19,124
4714 ADP Nederland B.V. 12 33 36% 6,437
2524 Sueters Interieurbouw 30 96 Our company 169,890
31%
60000076 Athlon Car Lease 20 73 27% 190,309
4693 Etiflex Holland 3 13 is their23%
main 8,613
5783100 Projectinrichting van Leeuwen 9 46 customer20% 79,303
3609 Hendriks Techniek Flevo BV 3 16 19% 26,829
4765 Broere Vliegpassages B.V. 3 16 19% 11,785
4761 Sellox B.V. 1 7 14% 5,588
5008 Transverba-Waalex B.V. 2 14 14% 7,726
5026 Café Bar Holland b.v. 1 7 14% 3,288

25. Analytic: Invoices falling below approval limits
Below threshold $2,500 Above threshold $2,500
COCO VENDOR_NUM_C # invoices Amount # invoices Amount
616 52 3,211 1,325,339 311 2,114,353
615 2196 1,169 860,752 405 4,922,257
615 4742 305 122,925 18 84,119
616 2 157 60,238 20 121,198
615 2 113 55,924 2 82,774
615 2195 103 120,273 374 14,472,678
616 4 101 32,933 2 7,728
615 2524 95 78,762 26 95,610
615 60000250 87 53,428 - -
616 60000076 57 11,728 14 173,162
615 4450 56 26,053 15 236,435
615 4165 52 31,145 2 6,395
616 4841 48 11,021 - -
616
Transaction that
60000019 45 77,772 1 3,694
615 may fall under
2160 44 26,207 2 5,108
615 the4924
radar 44 31,137 6 19,812
615 3 43 14,500 1 2,915

26. Analytic: Payment runs on weekends
C_COCO DAY BUY_FROM_VENDOR_NO_
POSTING_DATE NO_ AMOUNT
616 Sun 4 1/25/2009 40N08798 1,421
616 Sun 60000076 1/25/2009 40N08799 12,528
616 Sun 60000076 1/25/2009 40N08800 136
616 Sun 60000076 1/25/2009 40N08801 157
616 Sat 2 1/31/2009 40N08831 10,918
616 Sat 4169 1/31/2009 40N08832 107
616 Sat 4841 1/31/2009 40N08833 213
616 Sat Check runs 1/31/2009
4714 on 40N08837 104
616 Sat 60000076
Saturday or1/31/2009 40N08838 32
616 Sat 4169
Sunday 1/31/2009 40N08839 110
616 Sat 4169 1/31/2009 40N08840 51
616 Sat 2 1/31/2009 40N08841 115
616 Sat 2 1/31/2009 40N08842 80
616 Sat 4914 1/31/2009 40N08843 100
616 Sat 4914 1/31/2009 40N08844 65
616 Sat 4914 1/31/2009 40N08845 72
616 Sat 4911 1/31/2009 40N08846 4,361

27. Analytic: Purchase of unneeded material
Purchases
C_SKU INVENTORY
QUANTITY_ON_HAND AMOUNT # POs
RESERVE PO QUANTITYcontained in Amount
the reserve
40852100D 2,372 3 2,372 21,193 8 32 3 2,372
4130127/0 7,663 9 1,916 11,943 5 14 9 7,663
55705 1,373 40 1,373 9,747 2 38 38 1,304
40912100 3,746 4 937 4,683 2 5 4 3,746
2434540 3,638 79 3,638 3,454 2 75 75 3,454
201087 3,162 62 2,530 3,060 1 Purchases of
60 60 3,060
40913200 2,376 2 594 2,376 1 E&O Material
2 2 2,376
C10-RVS 2,629 2 1,315 1,315 1 1 1 1,315
1064720 772 10 386 768 2 10 10 772
4182054 71 2 71 500 4 14 2 71
2064310 126 4 126 315 1 10 4 126

28. Analytic: Price increases unusually high
NO_ UNIT_COST UNIT_COST1 INCREASE % AMOUNT COUNT1
1104521065011131 1,545 2,643 71 1,538,487 32
1004521063011100 1,208 1,672 38 1,381,912 16
1104521065011141 1,545 2,643 71 1,285,581 24
1106521045011131 1,578 2,724 73 1,054,751 21
1106521045011141 1,578 2,328 48 999,083 20
1006521043011100 1,133 1,133 0 770,569 16
2364251 4 12 165 530,446 61
1004509063011100 1,004 1,324 32 405,090 8
1106521054011122 2,963 2,963 0 325,958 6
0002010020000400 249 382 53 315,566 9
2364253 3 4 25 305,292 60
Inflated prices

29. Analytic: Benford Law
Above upper bound

30. Analytic: Employee and vendor have the same
bank account
SupplierCode SupplierName IBAN incoterms last_change SupplierAddress
C01458 A *nc 20080213 VIA RIVA
C00379 B *nc 20080415 VIALE FIUME N.5
6461 C *nc 20080627 VIA ERMINIA MAGGI 23
EMPLOYEE_NUMBERNAME IBAN TOWN ADDRESS
30077 A RANCO VIA CASTELLO INFERIORE 5
12942 B BRENTA VIA CEREDA 2
MFG C CIACCI VIA PILONE 129
Same bank
accounts

31. Analytic: Purchases of even numbers
VENDOR_NUMBER
AMOUNT_EUROCURRENCY Invoice__ DATE_MOVEMENT NUMBER_MOVIMENT
1491 (156,000) EURO 20081222 20081222 2721867
662 (108,000) EURO 20081126 20081128 2707853
5531 (72,000) EURO 20080923 20081014 2685244
6183 (50,400) EURO 20080702 20080828 2661559
1349 (43,200) EURO 20080929 20081020 2687195
6488 (42,000) EURO 20080625 20080909 2666249
4188 (40,200) EURO 20081126 20081126 2706205
5558 (36,000) EURO 20081127 20081210 2717316
2382 (36,000) EURO Multiples of 100 20081222
20081218 2721610
4398 (34,800) EURO 20080115 20080129 2552247
5739 (33,600) EURO 20080930 20081031 2693394
6470 (33,000) EURO 20081223 20081229 2723274
1503 (30,000) EURO 20080310 20080410 2597341
1503 (30,000) EURO 20080701 20080702 2638885
5547 (25,200) EURO 20081211 20081215 2718998
3664 (24,000) EURO 20080131 20080222 2566762
3664 (24,000) EURO 20080331 20080402 2587714

32. Analytic: Open aged trade payables
Aging Amount Count
Less than 6 months 2,014,930 744
6 mo-1 yr 622,949 290
1yr - 2yr 296,229 92
2yr - 3yr 100,000 45 Aged open
3 yr - 4 yr 75,000 48 Aged AP
Multiples of 100 payables
4 yr - 5 yr 50,000 25
Greater than 5 yrs 25,000 20
Totals 3,184,108 1,264

33. Analytic: Analysis of non-electronic payments
(checks)
Payments Percent Percent
# Vendors # Payments Amount
per Year of Count of Field
0-4 10,907 70.39% 18.01% 17,212 74,505,538
5-9 1,921 12.40% 13.35% 12,753 59,573,419
10-24 1,920 12.39% 29.30% 28,001 122,172,795
25-49 517 3.34% 18.07% 17,271 119,465,712
50 - 99 172 1.11% 11.87% 11,346 42,806,722
100 - 200 50 0.32% 6.92% 6,613 45,117,170
>200 9 0.06% 2.47% 2,359 36,015,004
Totals 15,496 100% 100% 95,555 499,656,360
Aged open
Opportunities to
move to ACH
payables

34. Analytic: P-Card Analysis
Percent Percent
Transaction_Amount Count Transaction
of Count of Field
_Amount
<1,000 48 13% 0% 21,047
1,000 - 4,999 93 26% 4% 259,015
5,000 - 9,999 78 22% 8% 564,232
10,000 - 24,999 70 20% 16% 1,116,768
Aged open
25,000 - 99,999 Abnormal 57 16% 36% 2,484,553
100,000 - 249,999
trend 9 3% 24% 1,619,194
250,000 - 500,000
payables 2 1% 11% 750,510
Totals 357 100% 100% 6,815,318
11 employees
Aged open
drive 35% of
payables
the purchases

35. Analytic: Duplicate Vendors in Master File
Vendor Num Status TEST1 TEST2 TEST3 TEST4
0000700184 NOT DUPLICATE
0000700185
0000700186
DUPLICATE
DUPLICATE
ADDRESS
ADDRESS
Duplicates:
0000700187 NOT DUPLICATE
1. Same name
0000700189
0000700192
NOT DUPLICATE
DUPLICATE NAME TaxID2 Aged open
2. Same
0000700196 DUPLICATE NAME
0000700198
0000700199
DUPLICATE
NOT DUPLICATE
NAME ADDRESS
payables
address
0000700200 NOT DUPLICATE
0000700202
0000700204
DUPLICATE
NOT DUPLICATE
TaxID2 3. Same Tax ID
0000700205 NOT DUPLICATE
0000700206 NOT DUPLICATE
0000700208 DUPLICATE NAME ADDRESS
0000700209 NOT DUPLICATE
0000700210 DUPLICATE NAME
0000700212 DUPLICATE NAME
0000700214 DUPLICATE TaxID2
0000700215 DUPLICATE NAME
0000700216 NOT DUPLICATE
0000700217 DUPLICATE NAME ADDRESS
0000700218 DUPLICATE NAME ADDRESS TaxID2
0000700219
0000700221
DUPLICATE
DUPLICATE
NAME
NAME ADDRESS
11 employees
0000700222
0000700223
NOT DUPLICATE
DUPLICATE NAME ADDRESS TaxID2 drive 35% of
0000700224
0000700225
NOT DUPLICATE
NOT DUPLICATE the purchases
0000700226 NOT DUPLICATE

36. Analytic: Use of non-preferred vendors
Temp Labor
Total Companym 1010 Companym 1020 Companym 1040
Vendor # Amount # Invoices Amount # Invoices Amount # Invoices Amount
0001013617 790,900 14 - - - - -
0001009169 461,444 193 424,998 154 - - -
0001022503 251,848 10 - - - - -
0001011534 164,626 122 15,180 12 - - -
0001028885 105,112 13 - - - - -
0001002872 79,077 29 - - 79,077 29 -
0001011527 68,452 24 31,927 14 - - -
0001031176 64,898 22 - - - - -
Business,
0001001894
0001035941
52,669
47,472
18
2 Aged open
2,916
-
volume and
-
3 -
-
-
-
-
-
0001034829 41,360 72 41,360 72 - - -
0001034907
0001033046
41,083
38,720
4
25
payables
41,083
frequency
- -
4 -
38,720
-
25
-
-
0001028798 33,191 14 - - - - -
0001006691 29,486 32 29,486 32 - - -
0001020424 27,997 39 - - 27,997 39 -
0001031818 27,992 16 27,992 16 - - -
0001018005 22,220 1 - - - - -
0001030548 20,463 8 20,463 8 - - -
0001012835 18,018 19 - - - - -
0001008166 17,248 16 - - 17,248 16 -

37. Analytic: Analysis of Vendor Terms
Payment
C_Category Amount # Vendors
_terms
Z006 Non-inventory 90,684,183 2,748
Z035 Non-inventory 52,874,490 2,707
ZD04 Non-inventory 49,866,751 4
ZC99 Non-inventory 24,521,644 201
Aged open
Payment terms Z013
Z005
Non-inventory
Non-inventory
23,661,948
20,080,190
584
744
by category
payables ZC99 Inventory 12,872,017 56
Z007 Non-inventory 12,350,877 186
Z005 Inventory 12,140,090 339
Z013 Inventory 9,099,744 124
Z006 Inventory 8,122,559 631
ZD06 Inventory 6,535,509 1
1 Non-inventory 6,224,268 228
ZD05 Non-inventory 5,123,545 2
ZD04 Inventory 3,317,955 1
1 Unidentified 2,895,549 49
ZD25 Unidentified 2,636,546 1
Z035 Inventory 2,606,600 41
Z002 Unidentified 2,554,497 145
ZD06 Non-inventory 1,668,997 3

38. Analytic: Vendors with PO Box as only address
Percent Percent
Stratification Count Amount
of Count of Field
0.00 - 9,999 100 69.24% 1.91% 500,000
10,000 - 24,999 200 9.81% 2.47% 5,000,000
25,000 - 99,999 300 11.96% 9.84% 20,000,000
100,000 - 249,999 200 4.66% 11.17% 25,000,000
250,000 - 499,999 50 1.88% 9.78% 15,000,000
500,000 - 1,000,000 250 1.55% 16.43% 30,000,000
>1,000,000 10 0.90% 48.40% 100,000,000
Totals 1,110 100% 100% 195,500,000
Aged open
Risk with mid-
volume vendors
payables

39. Analytic: Retro Purchase Orders
Invoice open
Aged date
prior to PO date
payables
COMPANY_CODE
ENTERED_BY INVOICE_DATE PO_DATE PO_NUM ITEM_DESC VENDOR_NAME ITEM_NUM
98 SMM0505 3/31/2009 11/20/2009 573041 Not inventory item FASTENAL COMPANY 8431030000
93 KML1025 10/28/2009 10/30/2009 572552 Not inventory item MAIN STREET BANK 8431019200
93 KML1025 10/28/2009 10/30/2009 572552 Not inventory item MAIN STREET BANK 8431019200
98 GDG0831 7/14/2009 10/23/2009 572330 .0685 FOR SPENAX BEKAERT CORPORATION WIRE0685
98 GDG0831 6/30/2009 10/23/2009 572330 .0685 FOR SPENAX BEKAERT CORPORATION WIRE0685
98 GDG0831 7/20/2009 10/23/2009 572330 .0685 FOR SPENAX BEKAERT CORPORATION WIRE0685
98 GDG0831 7/14/2009 10/23/2009 572330 .0685 FOR SPENAX BEKAERT CORPORATION WIRE0685
98 GDG0831 6/30/2009 10/23/2009 572330 .0685 FOR SPENAX BEKAERT CORPORATION WIRE0685
98 GDG0831 7/20/2009 10/23/2009 572330 .0685 FOR SPENAX BEKAERT CORPORATION WIRE0685
93 FJT0722 9/25/2009 9/28/2009 571701 ROD,CONSTRUCTION STAPLE,6.3MM
GERDAU AMERISTEEL 167096
93 FJT0722 9/25/2009 9/28/2009 571701 ROD,CONSTRUCTION STAPLE,6.3MM
GERDAU AMERISTEEL 167096
91 HJM1203 9/24/2009 9/25/2009 571666 Not inventory item TEKNICOTE, INC. 8431030000
91 FJT0722 9/14/2009 9/15/2009 571344 ROD,CONSTRUCTION STAPLE,6.3MM
GERDAU AMERISTEEL 167096
98 SMM0505 3/18/2009 9/10/2009 571204 Not inventory item MSC INDUSTRIAL SUPPLY CO INC 8431030000
98 SMM0505 5/6/2008 9/10/2009 571205 Not inventory item MSC INDUSTRIAL SUPPLY CO INC 8431030000
98 GDG0831 4/9/2009 8/24/2009 570598 Not inventory item AEROTEK INC 8431019100
98 GDG0831 4/9/2009 8/24/2009 570598 Not inventory item AEROTEK INC 8431019100
98 GDG0831 4/4/2009 8/24/2009 570598 Not inventory item AEROTEK INC 8431019100
98 GDG0831 5/7/2009 8/24/2009 570598 Not inventory item AEROTEK INC 8431019100
98 GDG0831 5/21/2009 8/24/2009 570598 Not inventory item AEROTEK INC 8431019100

40. Analytic: Payment date prior to invoice date
Invoice date
Aged open
prior to
payables
payment
INVOICE_NUM PAYMENT_DATEINVOICE_DATE CHECK_NUM PAY_AMT PA_JE_ CURRENCY
ED80740237 20081204 20081209 68653 621.14 PA0006400 CAN
ED80740345 20081204 20081209 68653 586.14 PA0006401 CAN
ED80740465 20081204 20081209 68653 86.24 PA0006402 CAN
ED87039683 20081204 20081209 68653 68.19 PA0006403 CAN

41. Analytic: Payment prior to due date
Invoice date
Aged open
prior to
payables
payment
VENDOR_NAME INVOICE_DATE DUE_DATE PAYMENT_DATE C_DIFFDAYS1
PAY_AMT
JISCO CORPORATION 20080909 20081208 20081124 14 48,375
JISCO CORPORATION 20080908 20081207 20081124 13 39,200
JISCO CORPORATION 20081001 20081230 20081222 8 27,291
BESCO MACH INDUST (ZHEJIANG)CO 20081106 20090105 20081229 7 14,489
KLEAR KUT ENGRAVING 20080930 20081114 20081107 7 3,604
HOLLINRAKE COMMUNICATIONS 20080930 20081114 20081107 7 545
DB ADVANTAGE INC 20080930 20081114 20081107 7 320
MACHINERIE PLUS LTEE 20081209 20081210 20081204 6 621
MACHINERIE PLUS LTEE 20081209 20081210 20081204 6 586
MACHINERIE PLUS LTEE 20081209 20081210 20081204 6 86
MACHINERIE PLUS LTEE 20081209 20081210 20081204 6 68
MERISCA MARKETING 20081121 20090105 20081231 5 2,369
JISCO CORPORATION 20080928 20081227 20081222 5 54,582
BRODIE INC 20081006 20090104 20081231 4 595
MSC INDUSTRIAL SUPPLY CO INC 20081006 20090104 20081231 4 532
MSC INDUSTRIAL SUPPLY CO INC 20081006 20090104 20081231 4 279
NICOLSON CUTTER GRIND & SUPPLY 20081120 20090104 20081231 4 274

42. Other Projects
► Trade Compliance
► Data Conversions
► Review of employee access to restricted areas
► Review of domains (network access)
► Sales Taxes

43. PRIOR STATE CURRENT/FUTURE STATE
Retrospective Near Real Time
Review Review
Narrow scope Entity wide
Sample Approach Full Universe

44. PRIOR STATE CURRENT/FUTURE STATE
Surprises with control Rapid response to
breakdowns control breakdowns
Fraud identified by Fraud identified/deterred
Complaints / accidently by data indicators
Audit tests done
Usage of CAATTs
manually

45. Conclusions
► CAATTs uncover issues that could be missed by
auditors
► CM&A program proactively protects the company
from errors, abuse, waste, revenue leakage, fraud
► The magic is in the data but the value is in
remediation
► Audit becomes an agent of change