February 15, 2002 Computer Assisted Audit Techniques 1 Florida Audit Forum Brent Godshalk Assistant City Auditor City of Gainesville, Florida

February 15, 2002 Computer Assisted Audit Techniques 2 User Survey Participant Usage of Audit Software? –ACL, IDEA, Access, Excel, Monarch, Others Extent of Usage –Data Extraction and Analysis –Statistical Sampling –Fraud Detection –Continuous Monitoring August 2001 IIA Survey –ACL usage 13/1 over IDEA usage

February 15, 2002 Computer Assisted Audit Techniques 3 Gainesville’s History With Computerized Audit Software Small Shop with Limited Resources Began Evaluating Mainframe-Based CAAT’s in mid-1980’s EasyTrieve, PanAudit, etc. Purchased PC-Based IDEA software in 1988 from CICA/AICPA Immediately found uses for software, but training and support were limited Accessing data was difficult

February 15, 2002 Computer Assisted Audit Techniques 4 Gainesville’s History With IDEA Marketing and Training for IDEA improved in mid-1990’s –Audimation Services, Inc. –Window’s Version of IDEA released – improved functionality and ease of use  Window’s version 2.0 in 1999 added print report extraction capability –Training Offered

February 15, 2002 Computer Assisted Audit Techniques 5 IDEA’s Recent Business History IDEA Software Sold to Private Company by CICA 2 years ago –Caseware International, Inc. appears to be moving to try to compete with ACL –Benford’s Law analysis to be added to IDEA this year –ACL versus IDEA

February 15, 2002 Computer Assisted Audit Techniques 6 IDEA Functionality Importing and Exporting Files –Numerous file formats supported, print reports Extracting Records – exception testing Duplicate and gap detection Statistical Sampling –sample planning and results analysis –random, stratified, monetary, systematic

February 15, 2002 Computer Assisted Audit Techniques 7 Importing Print Files – Selecting File

February 15, 2002 Computer Assisted Audit Techniques 8 Importing Print Files – Creating a Mask

February 15, 2002 Computer Assisted Audit Techniques 9 Importing Print Files – Opening Saved Mask

February 15, 2002 Computer Assisted Audit Techniques 10 IDEA Import Assistant Demo – Masked View

February 15, 2002 Computer Assisted Audit Techniques 11 Importing Print Files – Importing Data

February 15, 2002 Computer Assisted Audit Techniques 12 Importing Print Files – Resulting Data File

February 15, 2002 Computer Assisted Audit Techniques 13 Summarizing Data

February 15, 2002 Computer Assisted Audit Techniques 14 Extracting Exceptions – Regular Hours > 80

February 15, 2002 Computer Assisted Audit Techniques 15 IDEA’s Equation Editor

February 15, 2002 Computer Assisted Audit Techniques 16 Sorted Exceptions to Evaluate

February 15, 2002 Computer Assisted Audit Techniques 17 Duplicate Detection – Direct Deposit Accounts

February 15, 2002 Computer Assisted Audit Techniques 18 Joining Databases – Salary Comparisons

February 15, 2002 Computer Assisted Audit Techniques 19 Gainesville’s Usage of IDEA Payroll Processing Reviews Disbursements/Purchasing Utility Billing and Receipting Work Order Completion County Traffic Fine Collections Overtime Reviews

February 15, 2002 Computer Assisted Audit Techniques 20 Summary IDEA has been a powerful and productive tool for the Gainesville City Auditor’s Office With tools like this, auditors are only limited by our creativity Acquiring and using the tools available is a great way to improve audit coverage, productivity and effectiveness

February 15, 2002 Computer Assisted Audit Techniques 21 Where to Get More Information IDEA website - ACL website - Monarch website -

February 15, 2002 Computer Assisted Audit Techniques 22 Questions and Comments