Data analytics does not need to be difficult or time consuming to start and in this course, we will focus on the key learning blocks needed within Microsoft Excel to be an effective data analytic auditor or accountant. As regulatory changes sweep the globe, auditors, risk management, and compliance professionals are using more sophisticated tools, and methods. Using a live/video training library approach, we help companies of all sizes use audit and assurance software to improve business intelligence, increase efficiencies, identify fraud, test controls, and bottom line savings. AuditNet and Cash Recovery Partners Webinar recording available at auditsoftwarevideos.com and AuditNet.tv (registration required) Recording free to view. Sample Data Files for All Courses are available for $49 To purchase access to all sample data files, Excel macros and ACL scripts associated with the free training visit AuditSoftwareVideos.

1. Using MS Excel In Your Next
Audit - Top Basic &
Intermediate Techniques
(2 CPE Credits)
April 24, 2014
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Today focused on providing practical data
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2. About Jim Kaplan, CIA, CFE
 President and Founder of AuditNet®,
the global resource for auditors (now
available on Apple and Android
devices)
 Auditor, Web Site Guru,
 Internet for Auditors Pioneer
 Recipient of the IIA’s 2007 Bradford
Cadmus Memorial Award.
 Author of “The Auditor’s Guide to
Internet Resources” 2nd Edition
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About AuditNet® LLC
• AuditNet®, the global resource for auditors, is available on the
Web, iPad, iPhone and Android devices and features:
• Over 2,000 Reusable Templates, Audit Programs,
Questionnaires, and Control Matrices
• Training without Travel Webinars focusing on fraud, audit
software (ACL, IDEA, Excel), IT audit, and internal audit
• Audit guides, manuals, and books on audit basics and using
audit technology
• LinkedIn Networking Groups
• Monthly Newsletters with Expert Guest Columnists
• Book Reviews
• Surveys on timely topics for internal auditors
Introductions
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3. Webinar Housekeeping
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This webinar and its material are the
property of Cash Recovery Partners.
Unauthorized usage or recording of this
webinar or any of its material is strictly
forbidden. We are recording the webinar
and you will be provided with a link to that
recording as detailed below. Downloading or
otherwise duplicating the webinar recording
is expressly prohibited.
Webinar recording link will be sent via email
within 5‐7 business days.
NASBA rules require us to ask polling
questions during the Webinar and CPE
certificates will be sent via email to those
who answer ALL the polling questions
The CPE certificates and link to the recording
will be sent to the email address you
registered with in GTW. We are not
responsible for delivery problems due to
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controls in place for your email client.
Submit questions via the chat box on your
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After the Webinar is over you will have an
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complete the feedback questionnaire to help
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If GTW stops working you may need to close
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and follow along with the handout.
Disclaimers
5
The views expressed by the presenters do not necessarily represent the
views, positions, or opinions of AuditNet® or the presenters’ respective
organizations. These materials, and the oral presentation accompanying them,
are for educational purposes only and do not constitute accounting or legal
advice or create an accountant‐client relationship.
While AuditNet® makes every effort to ensure information is accurate and
complete, AuditNet® makes no representations, guarantees, or warranties as
to the accuracy or completeness of the information provided via this
presentation. AuditNet® specifically disclaims all liability for any claims or
damages that may result from the information contained in this presentation,
including any websites maintained by third parties and linked to the AuditNet®
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Any mention of commercial products is for information only; it does not imply
recommendation or endorsement by AuditNet®

4. Richard B. Lanza, CPA, CFE, CGMA
• Over two decades of ACL and Excel software usage
• Has written and spoken on the use of audit data analytics for
over 20 years.
• Received the Outstanding Achievement in Business Award by
the Association of Certified Fraud Examiners for developing
the publication Proactively Detecting Fraud Using Computer
Audit Reports as a research project for the IIA
• Recently was a contributing author of:
• Global Technology Audit Guide (GTAG #13) Fraud in an
Automated World – Institute of Internal Auditors.
• Data Analytics – A Practical Approach - research whitepaper
for the Information System Accountability Control
Association.
• Cost Recovery – Turning Your Accounts Payable Department
into a Profit Center – Wiley and Sons.
Please see full bio at www.richlanza.com
Learning Objectives
 Use Excel as audit software, able to mimic practically all data analytic
commands found normally in more expensive tools.
 Request, extract, import data into Excel, and validate data prior to
analysis.
 Get started with and quickly maximize Pivot Tables, turning them into
effective data mining tools able to unearth almost any audit finding.
 Use different approaches to sampling with Excel and low-cost add-ins.
 Create all types of graphs to pinpoint changes over time and/or other
chart dimensions.
 Turn a series of Excel functions into a macro so that data import and
audit testing techniques can be automated.
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5. Malpractice without Analytics?
http://www.nysscpa.org/trustedprof/107/tp11.htm
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How to Use Excel As
An Audit Tool
Free whitepaper on Excel:
http://auditsoftware.net/documents/excel-
audit-software.pdf
ActiveData for Excel Link – Discounted
$199 software purchase link -
http://www.informationactive.com/asv
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6. Types of Analytical Tests
(Substantive Test)
1. Trend Analysis
2. Ratio Analysis
3. Reasonableness Tests
4. Regression Analysis
“Analytical Procedures – Audit Guide”, AICPA, March 2012
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How To Use Excel As Audit
Software – Free Whitepaper
 Data Management Tests
 Append / Merge
 Calculated Fields
 Cross Tabulate
 Duplicates
 Extract/Filter
 Export
 Gaps
 Index / Sort
 Join / Relate
 Sample
 Summarize
 Analytical Tests
 Analytical Tests
 Horizontal Analysis
 Vertical Analysis
 Ratios
 Trend Analysis
 Performance Measures
 Statistics
 Stratifications
 Aging
 Benford’s Law
 Regression
 Monte Carlo Simulation
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7. Quick Process to Running
Data
1. Know your audit objectives
2. Align reports to the objectives
3. Use past reports to model /refine reports
4. Set data requirements based on reports
5. Obtain, validate, and normalize data
6. Edit scripts for data needs
7. Run reports and document results
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Clear Data Request
Accounts Payable Data Request.doc
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8. Sample Data Validation – Accounts
Payable Other Questions
Validation analysis can be programmed into the data
normalization script to answer the below questions:
Statistical analysis should also be completed as part of the
validation analysis
Agreement to batch totals and sample data are critical
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Polling Question #1
What comes first in the data extraction
process?
 Request data
 Set objectives for the audit
 Set report objectives
 Validate data
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9. Pivot Tables and Charts
> The Basics Explained
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Getting Started:
Pivot to New Sheet
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10. Getting Around The Pivot-
 Right click on the amount fields (data part) to
see field list and edit various Pivot Table options
 Select from the Top Ribbon Menu the Options
and Design menus for Pivot Tables (Excel
creates them when a Pivot Table is created) –
best and easiest way to make changes
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Change Number Format
and Type
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11. Graphing the Data
With your mouse pointer anywhere in the
Pivot, select the Pivot Chart button
Whatever is in the Pivot will be added to the
Chart
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Grouping Date
Ranges
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12. Polling Question #2
Where do you change your value formats in a
PivotTable?
 Grouping
 Value Field Settings
 Pivot Chart
 Active Field Format
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Stratifying Data and Dynamically Grabbing
All Data in a Pivot Table
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13. Stratify Your Data
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=IF(B4>1000,“3. Over $1000",IF(B4>100,“2. Over
$100 to $1,000",IF(B4<=100,“1. Up to $100")))
This will create three strata:
1. Up to $100
2. Over $100 to $1,000
3. Over $1,000
Start from highest to lowest – Excel picks the first
matching item
Capturing All Data
Named Range Formula
If PivotData is where you have your data:
=OFFSET(PivotData!$A$1,0,0,COUNTA(Piv
otData!$A:$A),COUNTA(PivotData!$1:$1))
…will ensure the entire sheet is mapped for
pivoting and graphing.
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14. Polling Question #3
What function is Used to Obtain All Parts of a
PivotTable?
 Min
 Over
 More
 Offset
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Specific Accounts Payable Tests
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15. Query Viewpoints
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Specific Accounts Payable Tests
(What) Summarize activity on the amount field (absolute
value of debit or credit) to identify the top occurring
amounts. Then summarize activity by vendor and the
amount identified for the top 25 appearing.
(What) Extract payables that equate to round multiples of
10,000, 100,000, and 1,000,000.
(When) Extract transactions posted on weekends and
holidays.
(When) Summarize activity by day, month, and year.
(Who) Summarize activity by user and month
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16. Other Useful Graphing Techniques
The Scatter
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31
Scatter Graph
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17. Scatter Graph Explanation
1 – high dollar change and low count (outliers)
2 – charges that make sense
3 – changes that don’t make sense
4 – inefficiency that is developing
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Polling Question #4
What function is used to determine if a cell is
a round number?
 OFFSET
 MOD
 MID
 ROUND
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18. Sampling in Excel and ActiveData for Excel
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Steps in Sampling
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1. Set Audit Procedure Objective
2. Define the Attribute for Testing
 Yes / No
 Value over / under statement
3. Set the Population
4. Select a Sampling Method
5. Calculate Sample Size
6. Audit the Sample
7. Evaluate the Sample

19. Types of Sampling
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Attribute (Random, Fixed Interval, & Cell)
Monetary Unit / PPS
Stratified
 By amount
 By transactional score
Software Input Types
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Term Record / Attribute MUS / PPS
Population Number of Records Dollars in a Field
Confidence Confidence %
Inverse is beta risk or risk of
incorrect acceptance
Confidence %
Inverse is beta risk or risk
of incorrect acceptance
Upper Error Limit Upper Error Rate %
Tolerable Deviation Rate
Materiality / Tolerable
Misstatement
Expected Total
Errors
Error Rate % Error Value
Interval Record Interval Dollar Interval
Tolerable Errors # of Errors Maximum Tainting %

20. Excel Macros Demonstration
Preparing Excel for
Macro Development
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Key Macro Uses
Formatting Data
Adding Totals and Formulas to Columns
Importing Data Files
Adding Tickmarks
Moving Data Around
….Anything You Repetitively Do As an Auditor
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21. Polling Question #5
What keys can you select to quickly open the
Visual Basic Editor:
 Ctrl-X
 Ctrl-Z
 Ctrl-F9
 Alt-F11
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Added Bonuses
Files Used in the Class
Using Excel as an Audit Software
ActiveData for Excel Link – Discounted $199 software
purchase link - http://www.informationactive.com/asv
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22. Questions?
Any Questions?
Don’t be Shy!
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In the Queue
Getting Started Using ACL in Your Next
Audit (ACL Basic) – May 1
Using ACL Scripting in Your Next Audit
(Basic/Intermediate Techniques) – May 15
Excel Pivot Tables and Graphing for
Auditors – June 25
Building Simple Continuous Monitoring in
ACL – July 2

23. Thank You!
Jim Kaplan
AuditNet® LLC
1-800-385-1625
Email:info@auditnet.org
http://www.auditnet.org
Richard B. Lanza, CPA, CFE, CGMA
Cash Recovery Partners, LLC
Phone: 973-729-3944
Cell: 201-650-4150
Fax: 973-270-2428
Email: rich@richlanza.com
http://www.richlanza.com
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