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Lab 5-1 Create a Common Data Model

Company summary
The State of Oklahoma captures purchase card transaction information for each of the state
agencies to determine where resources are used. The comptroller has asked you to prepare
the purchase card transactions using a common data model based on the audit data stan-
dards so they can be analyzed. The Fiscal Year runs from July 1 to June 30. FY2018 data
includes 420,595 purchase transactions totaling $166,285,071.06.

Technique
• Use SQL to transform purchase card data into a common data model

Software needed
• DB Browser for SQLite

In this lab, you will:

Part 1: Import and validate the data.

Part 2: Write a SQL query to transform the data.

Part 1: Import and Validate the Data

In most cases, you will be able to begin working with the data in the form it is given to you.
However, when you are preparing an analysis that you will use across multiple data sets and
periods, there is some benefit to doing an additional transformation step to map the data to
a common data model before you load it into the tool. For example, if you build analyses
based on the AICPA’s Audit Data Standard, you can simply map any new data table to the
common fields without having to rewrite your analysis. This illustrates the Master the Data
portion of the IMPACT model.
Note: If you’re interested in getting more hands-on with the programming a data mapping
model, search the Internet for object-relational mapping (ORM) as a method for querying and
transforming data using more advanced programming tools.
This file uses PCARD_FY2018_SQL data from Connect.
1. Open DB Browser for SQLite.
2. Click the New Database button, name your file “PCARD_FY2018.db”, and click Save.
When the Edit table definition window appears, click Cancel.
3. Go to File > Import > Table from CSV file. . .
4. Browse to the PCARD_FY2018_SQL on your computer and click Open.
5. Name the table PCARD_FY2018 and click OK. Wait for it to import.
6. Click the Browse Data tab to review the data and verify that it imported properly.
7. Click the Execute SQL tab and run the following two queries one at a time to check
the data integrity by comparing the numbers with those at the beginning of the lab:

SELECT COUNT(Amount)
FROM PCARD_FY2018;
SELECT SUM(Amount)
FROM PCARD_FY2018;

8. Take a screenshot of either query (label it 5-1A).

9. Save your database by going to File > Write changes.

Q1. What was the purpose of executing the two queries?

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Part 2: Write a SQL Query to Transform Your Data

Before we transform the data, we need to match the original attributes to the ADS attri-
butes. In the table below, the attributes from PCard match up with the ADS with the excep-
tion of four attributes listed in italics. We may want to keep the attributes as an extension of
the ADS so we don’t lose some potentially useful data.

PCard (Source) ADS Purchase_Order (Destination)

“” Purchase_Order_ID
TransactionDate Purchase_Order_Date
“2018” Purchase_Order_Fiscal_Year
BusinessUnit Business_Unit_Code
MerchantName Supplier_Account_ID
CardholderFirstInitial + CardholderLastName Entered_By
PostedDate Entered_Date
Amount Purchase_Order_Amount_Local
“USD” Purchase_Order_Local_Currency
SourceYearMonth SourceDate
SourceType SourceType
ItemDescription ItemDescription
MCCDescription MerchantCategory

10. Open your PCARD_FY2018 database from Part 1 in DB Browser for SQLite.
11. Click the Execute SQL tab.
12. Use the SQL code below as a template to remap the common elements. As you write
the SQL code, replace [Table] with the name of your table and add a line for each
mapping from the table above where [Field/Value] elements with either the fields or
values from your source data table. These may include:
a. The name of the field/attribute you’re referencing (e.g., [TransactionDate]);
b. Double quotes (“” or ’’ depending on the version of SQL) to leave the field blank;
c. A specific value in quotes (e.g., “2020” AS Purchase_Order_Fiscal_Year to add the
value 2020 for the fiscal year or “USD” to add a local currency); or
d. An expression to combine values (e.g., [First_Name]&” “&[Last_Name] AS
Entered_By or [First_Name] ||’ ’|| [Last_Name]AS Entered_By
SELECT
[Field/Value] AS Purchase_Order_ID,
[Field/Value] AS Purchase_Order_Date,
[Field/Value] AS Purchase_Order_Fiscal_Year,
. . .
FROM[TABLE];

13. Run the query by clicking the Play icon. Correct any errors in your SQL code if it
didn’t run correctly.
14. Take a screenshot (label it 5-1B).

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15. Click the Save Results button and choose Save as view.

Source: Microsoft Excel 2016

16. Name it PCARD_FY2018_ADS and click OK.

17. Save your database by going to File > Write changes.
18. Click the Save Results button and choose Export to CSV followed by Save.
19. Name your CSV file PCARD_FY2018_ADS and click OK.
20. Close DB Browser for SQLite.

Q2. How does mapping the data to a common data model make it easier to perform
analysis in the future?

End of Lab

Lab 5-2 Create a Dashboard Based on a Common Data Model

Company summary
The State of Oklahoma captures purchase card transaction information for each of the state
agencies to determine where resources are used. The comptroller has asked you to prepare
the purchase card transactions using a common data model based on the audit data stan-
dards so they can be analyzed. The Fiscal Year runs from July 1 to June 30. FY2018 data
includes 420,595 purchase transactions totaling $166,285,071.06.

Technique
• Use Tableau visualize purchase card data based on the Audit Data Standard

Software needed
• Tableau

In this lab, you will:

Part 1: Import and validate the data.

Part 2: Create four visualizations.
Part 3: Combine the visualizations into a dashboard.

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Part 1: Import and Validate the Data

Start by mastering the data and loading into Tableau:
1. Open Tableau.
2. Click Connect to a File and choose Text file.
3. Navigate to your PCARD_FY2018_ADS.csv from Lab 5-1 or Connect and click Open.
4. On the Data Source tab, click Update Now to preview your data and verify that it
loaded correctly.
5. Important! Adjust your data types so they will be correctly interpreted by Tableau.
Click the #, calendar, or Abc icon above each field and choose the following:
1. Dates: Purchase Order Date, Entered Date, Source Date
2. Number (decimal): Purchase Order Amount Local
3. String: everything else.
6. Take a screenshot (label it 5-2A).
7. Save your workbook as PCARD_FY2018

Q1. What do you think would happen if you didn’t update the data types in Tableau
before you perform your analysis?

Part 2: Create Four Visualizations

Next, perform the test plan, address results, and communicate your findings:
8. Starting on Sheet1, create the following visualizations (each on a separate sheet):
a. Show a distribution of total purchase amount by cardholder showing the business
unit as a color, sorted in descending order by purchase amount:
I. Columns: SUM(Purchase Order Amount Local)
II. Rows: Entered By
III. Marks: Business Unit Code (color)
b. Show a bar chart with the total purchases for each month showing the category as a
color:
I. Columns: YEAR(Purchase Order Date) MONTH(Purchase Order Date)
II. Rows: SUM(Purchase Order Amount Local)
III. Marks: Merchant Category (color)
c. Show a tree map of total purchases by business unit:
I. Marks: SUM(Purchase Order Amount Local) (size); SUM(Purchase Order
Amount Local) (color); Business Unit Code (label)
d. Show a distribution of total purchase amount by supplier showing the month of pur-
chase as a color, sorted in descending order by purchase amount:
I. Columns: SUM(Purchase Order Amount Local)
II. Rows: Supplier Account ID
III. Marks: MONTH(Purchase Order Date) (color)
9. Take a screenshot of any one of the four visualizations (label it Lab 5-2B).

Part 3: Combine the Visualizations into a Dashboard

10. In your Tableau workbook, create a Dashboard tab and drag each of the four
­visualizations into it from the pane on the left.
11. Take a screenshot (label it Lab 5-2C).

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Q2. Which five suppliers receive the most purchases?

Q3. Which month has the highest total purchase amount? The lowest?
Q4. What would happen if you change the data source in Tableau to another file
that is formatted following the ADS for purchase orders?

End of Lab

Lab 5-3 Set Up a Cloud Folder

Auditors collect evidence in electronic workpapers that include a permanent file with infor-
mation about policies and procedures and a temporary file with evidence related to the cur-
rent audit. These files could be stored locally on a laptop, but the increased use of remote
communication makes collaboration through the cloud more necessary. There are a num-
ber of commercial workpaper applications, but we can simulate some of those features with
consumer cloud platforms, like Microsoft OneDrive.

Company summary
You have rotated into the internal audit department at a mid-sized manufacturing company.
Your team is still using company email to send evidence back and forth, usually in the form
of documents and spreadsheets. There is a lot of duplication of these files, and no one is
quite sure which version is the latest. You see an opportunity to streamline this process
using OneDrive.

Technique
• Gather documents, explore document history and revisions

Software needed
• A modern web browser

In this lab, you will:

Part 1: Create a shared folder.

Part 2: Upload files.

Part 1: Create a Shared Folder

Note: These instructions are specific to the free consumer version of Microsoft OneDrive.
The approach is similar for competing products, such as Box, Dropbox, Google Drive, or
other commercial products.
1. Go to OneDrive.com.
2. Click Sign in in the top right corner.
3. Sign in with your Microsoft account. (If your organization subscribes to Office 365,
use your school or work account here.)
4. On the main OneDrive screen, click New > Folder.
5. Name your folder DA Audit Working Papers and click Create.
6. Open your new folder and click Share from the bar at the top of the screen.

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7. Add the email address of one of your classmates or your instructor, as directed.
Choose Anyone with a link can edit from the sharing options, then click Send.
8. Take a screenshot (label it 5-3A).
Q1. What advantage is there to sharing files in one location rather than emailing
copies back and forth?

Part 2: Upload Files

Now that you have a folder, you can upload some documents that will be useful for labs in
this chapter and the next.
9. From Connect, download the Audit Analytics Lab Files, as directed by your instructor.
10. Unzip the file you downloaded to your computer. You should see two folders: Master
Audit File and Current Audit File.
11. Return to your OneDrive DA Audit Working Papers folder, and upload the two folders:
a. Click Upload > Folder in OneDrive and navigate to the folder where you unzipped
the lab files.
b. Or drag and drop the two folders from your desktop to the OneDrive window in
your browser.
12. You should see two new folders in your OneDrive. Because you added them to a
shared folder, the people you shared the folder with can now see these as well.
13. Take a screenshot (label it 5-3B).

Q2. Explore the two folders you just uploaded. What kinds of documents and files
do you see?
Q3. How do you think these files can be used for data analysis?

End of Lab

Lab 5-4 Review Changes to Working Papers

See Lab 5-3 for background information on this lab. The goal of a shared folder is that
other members of the audit team can contribute and edit the documents. Commercial soft-
ware provides an approval workflow and additional internal controls over the documents
to reduce manipulation of audit evidence, for example. For consumer cloud platforms, one
control appears in the versioning of documents. As revisions are made, old copies of the
documents are kept so that they can be reverted to, if needed. Note: You must complete
Lab 5-3 before beginning this lab.
In this lab, you will:
Part 1: Upload revised documents.
Part 2: Review document revision history.

Part 1: Upload Revised Documents

Let’s start by making changes to files in your DA Working Papers.
1. From Connect, download Audit Analytics Lab Files Revised, as directed by your
instructor.
2. Unzip the file you downloaded to your computer. You should see two files: Audit Plan
and User_Listing.

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3. Return to your OneDrive DA Audit Working Papers folder, and upload the Audit Plan
into your Master Audit File and the User_Listing into your Current Audit File. You will
be prompted to Replace or Keep Both files. Click Replace for each.
4. Take a screenshot (label it 5-4A).

Part 2: Review Document Revision History

Now let’s look at the history of the document.
5. Right-click on one of the newly uploaded files, and choose Version history from
the menu that appears. The document will open with a version pane appearing on
the left.
6. Click the older version of the file from the Versions pane. Newer versions are at the top.
7. Take a screenshot (label it 5-4B).
8. Move between the old version of the file and the current version by clicking the time
stamp in the panel on the left.

Q1. What has changed between these two versions?

End of Lab

Lab 5-5 Identify Audit Data Requirements

As the new member of the internal audit team, you have introduced your team to the shared
folder and are in the process of modernizing the internal audit at your firm. The chief audit
executive is interested in using Data Analytics to make the audit more efficient. Your inter-
nal audit manager agrees and has tasked you with reviewing the audit plan. She has provided
three “audit action sheets” with procedures that they have been using for the past three
years to evaluate the procure-to-pay (purchasing) process and is interested in your thoughts
for modernizing them. Note: You should complete Lab 5-3 before beginning this lab.

Technique
• Review the audit plan, look for procedures involving data, and identify the locations of
the data.

Software needed
• A modern web browser

In this lab, you will:

Part 1: Look for audit procedures that evaluate data.

Part 2: Identify the location of the data.

Part 1: Look for Audit Procedures That Evaluate Data

1. Open your DA Audit Working Papers folder on OneDrive or download the Audit
Action Sheets document from Connect.
2. Look inside the Master Audit File for the document titled Audit Action Sheets and
open it to edit it.

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3. Use the Yellow highlighter to identify any master or transaction tables, such as
“Vendors” or “Purchase Orders.”
4. Use the Green highlighter to identify any fields or attributes, such as “Name” or
“Date.”
5. Use the Blue highlighter to identify any specific values or rules, such as “TRUE,”
“January 1st,” “Greater than . . .”
6. Create a new spreadsheet called Audit Automation Summary in your Master Audit File
and summarize your highlighted data elements from the three audit action sheets. Use
the following headers:

AAS# Table Attributes Values/Rules Step(s) Notes

7. Take a screenshot (label it 5-5A).

Q1. Read the first audit action sheet. What other data elements that are not listed in
the procedures do you think would be useful in analyzing this account?

Part 2: Identify the Location of the Data

Now that you have analyzed the action sheets, look through the systems documentation to
see where those elements exist.
8. In the Master Audit File, open the UML System Diagram and Data Dictionary files.
9. Using the data elements you identified in your Audit Automation Summary file, locate
the actual names of tables and attributes and acceptable data values. Add them in
three new columns in your summary:

Database Table Database Attribute Acceptable Values

10. Take a screenshot (label it 5-5B).

Q2. Which attributes were difficult to locate or in unexpected places in the
database?
11. Save and close your file.

End of Lab

Lab 5-6 Prepare Audit Plan

With the data elements identified, you can formalize your internal audit plan. In the past,
your internal audit department performed each of the three action sheets once every
24 months. You have shared how increasing the frequency of some of the tests would pro-
vide a better control for the process and allow the auditor to respond quickly to the excep-
tions. Your internal audit manager has asked you to propose a new schedule for the three
audit action sheets. Note: You should complete Lab 5-5 before beginning this lab.

Technique

• Review the audit plan, identify procedures that must be completed manually, and iden-
tify those that can be automated and scheduled.
• Also determine when the procedures should occur.

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Software needed
• A modern web browser

In this lab, you will:

• Evaluate the timing and scheduling of audit procedures.

Set the Frequency of Your Audit Procedures

1. Open your Audit Automation Summary created in Lab 5-5.
2. Add two new columns:

Auto/Manual Frequency

3. For each element and rule, determine whether it requires manual review or can be per-
formed automatically and alert auditors when exceptions occur. Add either “Auto” or
“Manual” to that column.
4. Finally, determine how frequently the data should be evaluated. Indicate “Daily,”
“Weekly,” “Monthly,” “Annually,” or “During Audit.” Think about when the data are
being generated. For example, transactions occur every day, but new employees are
added every few months.
5. Take a screenshot (label it 5-6A).
6. Save and close your file.

End of Lab

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