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Take Your Data Analytics Skills
To the Next Level
Don Sparks
Audimation Services
February 10, 2015
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Warm UP Routine
1. Difference between a Data warehouse, mart, or
lake? What is the significance?
2. What is your auditing function’s strategy on
data analytics? Core Skill; specialist only; do not need;
customers do not expect.
3. What are you reading these days?
“Lean Auditing”
by James Paterson, not the James Patterson that writes the Alex
Cross murder mystery’s.
4. Do IDEA Users know where the Training
Documents are located?
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“Nothing moves auditors into the board room faster
than finding undetected anomalies in company data.”
Data Analysis: Cornerstone to Effective Internal Auditing
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Tips for Successful Data Analytics
Integration
• Start with a high-priority, high-return project
• Focus on efficiency and effectiveness
• Communicate
• Be brief; be thorough; be gone!
• Exercise patience
• Call the Integration Help Desk
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Short Video Clips
• Data Analytics 2.5 minute promo
• Equity Funding – Start 1 minute
• Equity Funding – Stop 1 minute
• Open IDEA and demonstrate how easy the fraud
would have been detected if auditing was
provided a timely tip.
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One of My Own Wake-Up Calling
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Analytics Journey
Data
Information
Insight
Action
Data Analysis Process
Source: Aberdeen Group May 2012
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Data Analytics – A Practical Approach
World Class
Good
Better
Average
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Systematic Selection & Implementation –
Work Plan
Do You Need
a Roadmap?
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Auditing Top Duties Have Changed
Risk management processes are monitored through ongoing
management activities, separate evaluations, or both. (New)
2120.A1 – The internal audit activity must evaluate risk exposures:
• Achievement of the organization’s strategic objectives
• Reliability & integrity of financial & operational information
• Effectiveness & efficiency of operations & programs
• Safeguarding of assets
• Compliance with laws, regulations, policies, procedures, & contracts
2120.A2 – The internal audit activity must evaluate the potential for the
occurrence of fraud and how the organization manages fraud risk.
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Moving to “Green”er Pastures?
Administrators contemplating an online
program, must understand the:
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Critical design
Administrative issues – Teach the Teachers
Decision-making processes
“Red” flags signaling trouble ahead
Need for a Plan “B & C”
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Things Have Changed in 20 Years
(Since 1995)
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18 million American homes online, but only 3% of online users had ever signed
on to the World Wide Web.
Amazon.com opens for business, hyping itself as “Earth’s Biggest Bookstore.”
Craig Newmark starts craigslist, originally an email list of San Francisco events.
Match.com, the first online dating site, launches.
Entrepreneur Pierre Omidyar launches ebay, originally named “AuctionWeb.”
First item sold: a broken laser pointer. A collector purchases it for $14.83.
Netscape IPO starts the gold rush mentality for Web startups.
Microsoft releases Windows 95 and the first version of Internet Explorer.
Web hosting service GeoCities launches.
The Dancing Baby, a 3D animation, becomes one of the first viral videos.
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Auditing Best Practices Have Changed
Risk
Based
Audit
Universe
Auditing by
Priority
Expected
Controls
Not a key
risk
Automated
Manual
Regular
Monitoring
Analysis
Testing
Alternative
Testing
Ongoing
Monitoring
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K12 Education Has Changed
(Since 1995)
• Parents seek advice of teachers on best education software for home
use.
• Progressive teachers take PC’s into classroom for “special use”.
• Special use internet enabled computers in the classroom replace VHS
and cable TV as education rich websites grow with easier to handle
media.
• By 2000 many schools have computer labs usually from donated PC’s.
• The first educator’s administrative stand-alone software available
(GradeBook) around 2007.
• In the last two years, many school districts have pooled resources and
established enterprise-wide online platforms involving the district, school,
parents, teachers and students. Less costly, better and faster service.
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Today
• Teachers like common tasks streamlined to save time and
focus on instruction. Easily record standards-based
assessments, take attendance, grade assignments on rubrics,
and keep behavior logs. See whose grades are dropping, and
email the whole class.
• Students and parents can login to check grades and
homework, download files, and view announcements and
calendar notices. School-to-home communications are
dramatically improved. Parents can set alerts for low grades,
missing assignments, and absences.
• With Smart-boards in the class running with online forms,
simple activities can be handled by the student as they arrive.
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New Risks in Online Processes
Are these areas in your “Audit Universe”?
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Teacher Gradebook
End of Period Report Cards
Parent Contact Data Base
Scheduling
Parent/Teacher Messages
Attendance
Seating charts
Discipline
Billing
Cafeteria
Admissions
Online Applications
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Data Base Admin Duties
Online Forms
Accounting
Lunches
Field Trips/Chaperones
District Management
Photo ID Cards
Emergency Notification System
School Nurse
School Library
Special Development Needs
Special Assessment Tests
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It Does Not have to Take 10 Years
to Make an Overnight Success
At a county high school,
students are still waiting for
final grades from the spring
because of a programming
error (July 19, 2014)
Source: Orlando Sentinel
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UPDATE 7/23 - Report Cards Ready?
High school students and recent graduates are still waiting for
their final spring grades, even as Back to School shopping gets
underway. More than six weeks after school let out for the year,
district officials are still unsure that student report cards are
accurate. A "human programming error" that wasn't caught until
after some report cards were picked up has led to a long delay.
District spokeswoman said that final grades -- which are
calculated by a program that also factors in outside results like
state End of Course scores -- did not work properly. A possible
reason is that a programmer left the district before report cards
were complete. A small-scale verification did not find the problem
before schools and parents did, she said.
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Analytics Demonstration
• Determine the last date a teacher, parent or
student accessed the report card and include
the frequency for the reporting period.
• The Challenge: Typically, only the Database
Administrator has access to the login data and it
is displayed at a specific point in time.
• One Solution: Archive the reports regularly so
they can be analyzed (appended) to present a
more detailed review of login activity.
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Parent Account SysAdmin View
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Questions?
Don Sparks, CIA, CISA, CRMA
dons@audimation.com
Audimation Services
1250 Wood Branch Park Drive
Houston, TX 77079
888-641-2800
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