Using Excel as an Audit Software 

A new online document, available for free through AuditSoftware.Net, plans to help organizations use Microsoft Excel in the auditing and analysis of company data files.  Through improved data analysis, companies can more efficiently and effectively gain assurance that internal controls are working and that fraud opportunities are minimized.  The document can be found at the following link:  www.auditsoftware.net/community/excel/

Rich Lanza, the author of the document entitled Using Excel as an Audit Sofware notes, “The purpose of the document is twofold.  First, it is meant to show how easy data analysis tasks can be with an inexpensive and comfortable tool for most business professionals.  Second, while I am a firm believer in using more robust audit software tools when necessary, the document proves Excel to be a trusty companion when handling smaller data sets.  Granted, there is a limitation that you can only handle 65,536 rows of data but for many data sets, that is plenty large”.

The document goes on to explain how to complete all data analysis tasks in Excel that more robust audit software packages handle “out of the box”.  A sampling of highlighted functions discussed in the document include joining files, calculating statistics, filtering to certain transactions, and performing regression analysis.  As Lanza notes, “While the document does provide step-by-step guidance in completing data analysis tasks, it is not meant to be a full training in Excel.  It is my hope that through the free dissemination of this tool, that more internal and external auditors, as well as, company management will utilize data analysis in their control assessment activities.  Further, once they see how easy and how much value this work provides, they will be ready to explore more off the shelf audit software and continuous monitoring applications.”

AuditSoftware.Net aims to provide audit professionals with information they need to bolster their knowledge and access to technology solutions. The site contains in-depth information on audit and business software including programs to: improve corporate transparency, reduce costs, fight fraud, minimize operational risk, and increase their data mining capabilities.  It also provides many community-building activities such as free events and message boards.

Rich Lanza is a manager of internal audit at a Fortune 200 retailer, where he focuses mainly on using computer-assisted audit tools to improve business intelligence, increase efficiencies, proactively detect fraud, and identify bottom-line savings. Lanza is also an authority on the use of data extraction and analysis technology.  For his data analysis work in the area of fraud detection, he received an Outstanding Achievement Award from the Association of Certified Fraud Examiners in 2003.

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