1. © ACL Services Ltd.
Manuel Coello
Creating Sustainable Analytics –
A Recipe for Success
ACL Connections 2013

2. 2 /
4/3/2013
Operate as a “Center of Excellence”
Transforming the use of analytics through centralized focus
1. IT Infrastructure
2. Access Controls
3. License Managements
4. System Connections
5. Data extractions
6. Project Management
7. Analytics Framework
8. Data Conversion
9. Analytics Execution
10. Investigations
15. Record Retention
16. Policy and Procedures
17. Maintain External Lists
11. Continuous Auditing
18. Quality Reviews
19. Budget Tracking
20. Visualizations
12. Research
14. Training
13. ACL Programming
Role/Skill Ops Analyst Dev
ITOtherExecution
Chief Audit Executive
Audit Manager
Data Analytics Dev Lead
Analyst
Data Analytics Manager
Data Analytics Ops Lead
ACL Programmers
Consultants Consultants

3. 3 /
4/3/2013
Utilize a variety of analytic techniques
Choosing the right approach
Comparison
 Reconciliation
 Keyword Search
 Match versus an external list
 Exact match between two tables
 Fuzzy match
Analysis
 Classification
 Trending Analysis
 Frequency Analysis
 Stratification
 Scoring Models
Statistics
 Profiling
 Benford Analysis
 Modeling
 Sampling
 Regression Analysis
Outliers
 Even numbers
 Above or right below specific thresholds
 X times greater than avg or std deviation
 Unusually high/low variances between periods
Exceptions
 Duplicate transactions
 Sequence Analysis
 Split transactions
 Recalculations
 Rule criteria matches
Dates
 Aging analysis / aged transactions
 Transactions with specific dates of the week
 Transaction with dates out of sequence
 Dates or time stamps within specific ranges

4. 4 /
4/3/2013
Invest in documentation
Standard
Operating
Procedure
 Process- Data acquisition, validation, execution, QA, delivery
 Naming Convention- Projects, files, tables, scripts & fields
 Data Repository- Posting of data, ACL projects & results
Policy
Technical
Document
Other
Operating on a solid foundation
 Roles & Responsibilities- Define everyone’s contribution in the process
 Data Management- Data retention, repository of tests & results
 Governance- Change management, access
 General- Context, description of test, logic
 Technical specs- Technical description, required fields, parameters
 Results- Output files, what to do with the results
 Data Request- Fields & files need for each analytic
 Examples of Analytics- Output files in Power Point
 Menu of Services- Description of all the analytics & logic
 Database of ERPs & Owners- All systems & IT owners
 Version Controls- Tracker with all script changes

5. 5 /
4/3/2013
Use multiple approaches to obtain data
Shortening the cycle with data acquisition techniques
DataRequisitionDirectConnection
DatamartScripts
ProcessApplication

6. 6 /
4/3/2013
Build a toolbox of capabilities
Delivering results by using a complementary suite of functionalities
Extraction
Format
OCR
Keyword Search
1
5
2
6
Tapping into Business Systems
Reading any type of files
Analyzing Documents
Identify docs with keywords
Utility Scripts
Statistical
3
7
Analytic Accelerators
Visualization
Reporting
4
8
Making sense of big data
Delivery method
 ACL ODBC…free
 Directlink…a must have for SAP
 Informatica…nice add on
 Unstructured data
 Floating trapping
 Verification of the conversion
 Portability of templates
 Linkage to the original report
 Converts PDF into text
 Allows to audit contracts
 Text analytics
 Analyze words in all
document types
 Collecting information
directly from the archive
 Leverage scripts with
standard functionality
 Time savers
 Maximize expertise
 Profiling & modeling
 Predictive analytics
Use the power of statistics
 Graphs with multiple
dimensions
 Use advance visual techniques
 Help the audit where to look
 Organized result package
 Easy to follow reports
 Ready to add to the w/ps

7. 7 /
4/3/2013
Run a cost-efficient analytics practice
Delivering value by being better, faster & cheaper
a) – Subjective assessment – this is not based on research
Tips
Connections to Centralized Data
W2W Process, 24 hr shifts, low transitions
Dedicated Dev Team / Project Plans
Tone of the top / Good PR
Automation, outsource
Tactical hints
Dedicated Dev Team
Add value / architect solutions
Collaboration / Analyst with biz knowledge
Availability
KPI
Turnaround Time
Areas Automated
No data from biz required
Cost per Project
% Audits using Analytics
Great-a)
30%-50%
3-5 days
50%-75%
10%-25%
Reasonable
Goal
Good-a)
< 3 days
75%
>50%
Inexpensive
>70%
Measurement Standard
% defects in QA Reviews
# Improvements
NPS
Collaborations
<1%
5 per month
>50
>9
% Issues from Analytics >25%
50-70%
1-5%
1-5
40-50
>8.5
Passionate Team

8. 8 /
4/3/2013
Standardize best scripts for re-use
Leveraging ACL to work again & again
Appending multiple tables
Data Preparation
1
2 Running totals
3 Text standardization
Statistics/profiling
Analysis
5
6 Aging
7 Regression analysis
4 Splitting field into individual words
8 Volume analysis
Even dollar amounts
Outliers
9
10 High standard deviation
11 Suspicious date ranges
12 X Standard Deviation by group
Duplicate transactions
Exceptions
13
14 Keyword search
15 Split transactions
16 Fuzzy match

9. 9 //
4/3/2013
Leverage external lists for tests
Screening
Reference
Hierarchy
Structures
 Preferred Vendors
 Gov Agencies
 PEP/OFAC
 MCCs
 Banking Calendars
 Corruption Index
 Consolidation
 Employee HR
 Reconciliation
 Travel Expenses
 ERPs
 Death Index
 Training courses
 Adult Entertainment
 Physicians
 Hospitals
 Charities
Using data outside the box
Other
 Oracle/SAP
Rulebook
 FCPA keyword
 Suspicious words
 Legal Entities

10. 10 /
4/3/2013
Create an environment of innovation
Unleashing employee creativity as a value creation tool
 Work on a project of choice– no approval required
 20% of time during off-peak season
 Project aligned to priorities/vision
Sponsor Projects
 3-5 day lock-out in the same room working on a project
 Outside location
 Multiple team members working toward a common goal
Time Out
 Team collaboration
 A person assigned as facilitator
 SMEs, Business, auditors & scripter
War room / Agile
 Track ideas & enhancements
 Frequent brainstorming sessions
 Budget for funding new projects
Other

11. 11 /
4/3/2013
Go beyond data
Thousands of data points within one view
Bar Charts
Geocoding
Trending
Heatmap Treemap
Word cloudsBubble
Network

12. 12 /
4/3/2013
Use a variety of analytics modalities
Finding the right approach
Near Real-time Analytics
• Fully Automated
• Tracks exceptions & remediation
Review process globally
• >95 company coverage
• Low-cost… great findings
Beyond numbers
• Derive risk intelligence
• Identify areas for scope adjustment
Continuous Analytics Horizontal Audits Text Analytics
Use analytics for yourself!
• Audit findings, report ratings, ombuds
• Yearly planning process
Machine learning approach
• Use statistics / identify patterns
• Learn to produce a correct output
Visual representation of data
• Relationships, patterns, outliers
• Multiple dimensions display at the
same time
Internal Analytics Predictive analytics Visual Analytics

13. 13 /
4/3/2013
Protects the data
Safeguarding the data as a core competency
 Analytics execution within the server
1 Secured server
Restricted access to data & analytic results
 Designated folder per each audit
2
Delicate use of data3
 Exclusive access
 Remove sensitive data  Mask the data  Provide only exceptions to auditors
3
Other
 Document security controls  Comply with export controls
4
 Certified server
 Access only to auditors within the engagement  Automatic purging
 Period data purge

14. 14 /
4/3/2013
Creates numerous strategic partnerships
Maximizing resources & capabilities
IT
• Efficient Data Acquisition Process
• Effective approach
SMEs
• Operational Expertise
• Unique test frameworks – reduce false positives
Consultants
• Expertise & focus
• Project Management & improvement leaps
Audit Team
• Relevant approach
• Involvement in User Acceptance Testing
Outsiders / Peers
• Free ideas
• Fresh views
ResourcesCapabilities
Vision
Business Leaders
• Free resources
• Future sponsorship

15. 15 /
4/3/2013
Establish a unique employee culture
Sharing common values, attitudes, standards and beliefs
• “Can do” attitude
• Independence
• Sense of urgency
• Critical Thinkers
• Leaders
• Innovators
• Communicators
Values
Behavior
Thinking
Simple
• Diversity
• Passion
• ETDBW
• Trained
• Teamwork
• Collaboration
• Partnership
People
Difference
• Focus on better audits
• W2W
• No ROI
• QA Server / Unicode
• Workflows
• Documented w/ps
• Strong infrastructure

16. 16© ACL Services Ltd.ACL | Connections 2013