Internal Audit & More EI s Journey as a new user of CaseWare IDEA 10. Thomas Shannon Managing Director Excel Industries

Transcription

1 Internal Audit & More EI s Journey as a new user of CaseWare IDEA 10 Thomas Shannon Managing Director Excel Industries

2 Excel Industries - Brief Overview Established in May 1985 Manufactures & Distributes a range of products for the Building Services & DIY Sector 60 fulltime staff Operates from three separate facilities in Dublin Range of over 10K listed products to the market 2

3 Sample of Brands 3

4 Background Why Internal Auditing? Why IDEA 10? In 2017 Certified as an Authorised Economic Operator (AEO) by Customs Revenue subject to ongoing monitoring Ability to import different file types (XML, XLXS, PDF) Data Analytics Ability to process large volumes & sizes of data files Audit functionality 4

5 Authorised Economic Operator (AEO) International Accreditation for the movement of goods, certifying that a business has met certain standards in relation to: Safety and security Systems to manage commercial records Compliance with customs rules Financial solvency Practical standards of competence or professional qualifications Note: Current Number of AEOF Accredited Companies: Ireland: 126 United Kingdom: 368 5

6 EI Internal Audit Timeline 2018 February - Tested a trial version licence of IDEA 10 on sampling financial reports March - Purchased Software licence and installed Internal Audit April - Commenced Internal Auditing Sampling for financial Quarter Jan to March 18 July - Internal Audit Sampling of data for Financial Year 1 st July 2017 to 30 th June 18 - Started to use IDEA 10 on Compliance checks VAT & RTD Revenue Returns August Sept - Re- writing of Visual Reports Outputs from Accounting System for Audit & Analysis - Commencement of program revising Monthly Management Reporting 6

7 Internal Audit Program Internal Audit Internal Audit Program Supplier & Customer Payments EFT s Cheques & Lodgements Petty Cash Reconciliations Credit Cards Purchase & Sales: Invoices & Credits Journals Nominals Stock Order Processing Adjustments Write offs IDEA 10 Software Analysis Tools: Duplicate items- e.g payments Gap Detection e.g. missing sequence in invoice numbers Benford s Law comparing current / expected Statistical Analysis - correlation, time series and Trends Visualisation - Discover tool displaying insights on database 7

8 Internal Audit Examples Simple Duplicate checks on payment amount: Internal Audit Simple Duplicate checks on receipts amounts / Cheque numbers: Duplicate amount & Cheque Nr? Duplicate Cheque Nr but different Customers Cheque Nr for a EFT (Your Ref)? 8

9 Internal Audit Examples More complex stock purchases coded items: Idea 10 Discover Header Internal Audit Stock Code on the Orders/ invoiced should not be blank on Coded Inventory items 9

10 Internal Audit Learning Outcomes Speed at which we could analyse data with Idea 10 software Internal Audit How easily financial errors/ irregularities could be identified (Especially with Discover tool) Size of data reports that could be analysed Ability to Append Exported Reports ( bypass size limitations of Excel Databases) Ability to connect data sets i.e Daybook Orders / Daybook Transactions (Invoices & Credits) Undetected errors at processing in certain areas 10

11 Internal Audit Learning Outcomes Ability to concentrate on large data sets for stock: Average holding: 12.8M Inventory coded stock components Average Value M Internal Audit Extent of IDEA 10 Analysis dependant on information provided from Accounting system Internal Audit Reports could be set to compliment Financial Compliance Reconciliation Focused Management Information using the Visualisation Dashboard 11

12 Compliance Confirmation on Data Reconciliation checks on bi-monthly Valued Added Tax (VAT) Returns ( Identifies any miss posting errors in Purchases or Sales) Compliance Confirmation Annual Return to Trader Details (RTD) ( Identifies differences between the accumulated ) Bi Monthly Stock field checks covering the main Interstat settings ( Taric Codes, Weights, duty & Country of origin) Internal Audit trail for Customs Revenue review as part of AEO 12

13 Accounting Reports Revisions Redesign of visual reports from accounting package commenced August 2018 New reports outputs contain line by line information for Purchases, Sales and Nominals Other information includes, original user, computer operator name,user defined fields etc. 13

14 Management Information From the reports processed for audit checks meaningful visualised reports: Sales Purchases Stock Movement & Adjustments Stock holding Financial Analysis 14

15 Management Information Example Data Analysis of wrote off orders per quarter Accounting system sales order daybook: Output Report by Visual Report: Import Visual Report into IDEA 10 & Use Visualize tool: 15

16 Management Information Example Summary Results from IDEA 10 Visualize Dashboard tool for Quarter : 16

17 Management Information Example Summary Results from IDEA 10 Visualize Dashboard tool for 4 Quarters in Financial year 17

18 Management Information Example Summary Results from IDEA 10 Visualize Dashboard tool Appending Quarters data sets: 18

19 In Summary Accounting reports output configured for analysis in IDEA 10 for the following: Internal Audit Compliance Confirmation Management Information 19

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