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COMPUTER ASSISTED AUDIT TOOLS and TECHNIQUES
SOFTWARE REVIEW
DataCheck: the New Kid on the Block:
The use of computer assisted audit tools and techniques or CAATTs is now commonplace in many internal audit offices. Where several years ago the use of CAATTs was optional, the increase in digital data storage within organizations has caused audit shops, large and small, to look to these methodologies for data extraction, audit examination and reconciliation.
The principle here is straightforward. Auditors no longer have to rely on a sample of transactions in order to draw conclusions on an entire population. Automated tools and techniques allow auditors to examine an entire population of digital information and identify data that is suspect or unusual. A new application for internal auditors is DataCheck; a data integrity reconciliation and comparative processing system. According to the developer, SGP International, Inc., DataCheck is a simple, easy-to-use reconciliation tool as well as a powerful data manipulator that can identify data variances thereby facilitating the reconciliation process.
SGP International provided me with a copy of the software to give it a test drive. While I'm not an information systems auditor, I know enough about technology to apply a tool like this to an audit environment. DataCheck is designed to be one of the first steps of an audit analyses or testing process, to help determine whether further analysis and testing is required. The primary purpose of DataCheck is to rapidly and accurately verify and reconcile different files or databases before proceeding with more extensive analyses of the data. The beauty of the program is that it closely follows the reconciliation process without the distracting bells and whistles of other, more complex data extraction and analysis programs. In my opinion, this could be a major selling point to small internal audit shops that are looking for a quick "data reconciliation tool."
As with other CAATTs software, I find the easiest part of this program is learning how the software operates. The software ships with files to run a test demonstration in order to become familiar with the program. The demonstration files assume a front office/back office order-taking process. Using the Quick Start Guide and the demonstration files, it is easy to walk through the data import and analysis and reconciliation process. While in some cases, the harder part of using data extraction and analysis or reconciliation software is actually getting the raw data from the organization, SGP International has an extensive consulting service to support this effort. For further support, I suggested to the developers that they might consider adding a chapter on this subject to their User Guide.
Users create simple, common sense English -language reconciliation rules in that are automatically rewritten into standard SQL queries. After running a query, the program presents the results or the inverse result set, allowing the data to be divided into matches and inverses or errors. DataCheck also provides text or XML-based reporting functionality, which can be integrated across multiple applications to provide an easily accessible audit trail.
DataCheck uses Microsoft Jet as the primary database engine which is the same system used by Microsoft Access. Microsoft Jet is designed for concurrent users and up to 2 gigabytes of data. While this may limit the software's usefulness for organizations with source files that exceed 2 gigabytes who are looking for a full reconciliation of all of the data, it is ideal for use at the departmental level and by independent auditors using laptops and wanting to avoid more complex, server-based tools. DataCheck also supports conditional imports, so that only the required data can be imported, even if the source file is much larger.
As stated by the developer, the program has an intuitive front end using English language as opposed to technical terms. The program creates a snapshot of the data to be imported, ensuring that the data in the source system is not compromised. Data from diverse file formats can be imported fully or partially, and reconciled as if they came from the same source. DataCheck allows you to import text, MS Word, Excel, Access, and .CSV file formats, or through ODBC connectivity. Since audit shops are dealing with a variety of mainframe and client server systems, these formats may limit the uses for the software. However, most current software supports export in these common file formats.
As a program that provides for quick and easy reconciliation, internal auditors should consider this software in their arsenal of CAATTS applications.
For more information, go to the SGP International Inc. web site at www.sgpnyc.com
