Data Analytics Services

Maillie has transformed the way we audit. Running data analytics tests on extensive amounts of data during the audit planning phase helps provide a better understanding of what is happening in an organization, the areas of greatest risk, and the state of risk management in the entity. Utilizing insights provided by data analysis in this phase of the audit helps shift and refine the focus of the audit early on. Using data analysis in the planning process provides us with a more comprehensive understanding of the scope of the entity.

Potential data analytic tests include the following:

General:

• Benford’s Law

• Data Matching

General Ledger:

• Total journal entries by source
• Foot balances to ensure they balance to zero
• Analyze year-to-date activity for large operating accounts
• Calculate and sort percentage variances in accounts between periods
• Test for transactions with dates outside the posting period or duplicate postings
• Test for unusual posting days or times

Payroll:

• Stratify salaries by departments
• Analyze overtime pay, sick and vacation
• Sort names and addresses for duplicates
• Duplicate direct deposit accounts
• Merge with vendor files
• Review highest paid employees

Inventory:

• Reconcile physical counts to computer amounts
• Analyze usage
• Segregate variances from standard pricing
• Review for duplicate items

Accounts Payable:

• Summarize disbursements by vendor
• Isolate vendor unit prices by product
• Evaluate purchasing contract compliance
• Calculate days in accounts payable and average days for invoices to be paid
• Test for items with dates out of cut-off range
• Identify invoices without purchase orders
• Review for duplicate payments
• Review gaps in check numbers
• Review for duplicate PO numbers
• Compare master file at two dates to identify new suppliers

Accounts Receivable:

• Generate summaries by customer
• Identify old items
• Select accounts with no recorded movements in a set time
• Identify duplicate invoices
• Report gaps in sequences of invoices
• Summarize unit billing rates
• Review frequency of billings

Audit quality can be measured. The quality of the audit is a result of the performance of the audit team in planning and executing the audit and the system of quality control of the audit firm as a whole.