Derrick Wong (Managing Director)
Popular Analytics Tests (Part 1 of 6 Series)
Popular Analytics Tests (Part 1 of 6 series)
Many Internal Audit team needs to prove ROI if they intend to invest on Analytics technology. The best way is to achieve quick implementation of analytics use cases, and start testing it out on their data. When it comes to analytics use cases, we always share with our customers on 2 things:
1) Analytics is only limited to your own creativity.
2) No Two Organizations are Identical, But there will be commonly use analytics which many will be using the same tests.
So to achieve quick ROI on your analytics, we have come up with 6 areas of the common and popular analytics tests that you can consider. They are:
1) Employee Spending
2) Vendor Management
4) GL JE Risk Scoring
5) Duplicate Payments
6) Counterparty Validation & Outliers
We are going to break into 6 parts series. Do follow us on our LinkedIn or subscribe to our newsletters for updates. To start off the part 1 of 6 series, we are going to talk about Employee Spending.
Spending controls aren't always sophisticated enough to prevent or detect unauthorized transactions in a timely manner. Whether it's P-Cards or Travel & Entertainment expenses, the sooner suspicious expenses can be detected, the sooner they can be resolved. Here are some analytics use cases:
The temptation to split a purchase into two transactions to circumvent approval controls poses a perennial challenge. Additionally, two employees may collude by each claiming one of the purchases.
This is easily addressed in Analyzer by:
(1) isolating the below-the-limit transactions by extracting them to a file,
(2) extracting these records to a second, identical file,
(3) executing a many-to-many Join between the two files with the employee number and vendor ID as the key fields, and
(4) filtering for pairs of transactions that add up to an amount over the employee's limit.
Additional filters can be invoked to specify pairs of transactions within x days of each other.
Cardholders with Excessive Declined / Disputed Transactions
Card processors can provide data files containing declined and disputed transactions by employee cardholders. Analyzer's enhanced Summarize command can identify employees with high rates of declines and disputes.
Terminated Employees & Active Cards
Suspicious transactions frequently occur in the period just before and after employees are terminated. Controls don't always result in timely invalidation of employee PCards, but prompt identification of such transactions is straightforward with Analyzer.
A direct connection to Concur and other databases makes it possible to continuously compare employee transactions and termination dates.
Multiple Cards per Employee
With an automated download from the enterprise application, issued cards can be scanned with the Duplicates command to identify employees with more than one active card.
Analyzing the T&E transaction date with the Age command will identify claims that are more than 30 days older than the report date.
Do watch out for the next few series, or reach out to our team firstname.lastname@example.org for further discussion on your areas you will like to cover.