Uel Training - For Uel Students.pdf

UEL Training To Get The Most Out Of Today Check in & Check out form provided for each session Participate, ask questions, speak so everyone in the classroom can hear you Turn your phones into silent m[.]

To Get The Most Out Of

Turn your phones into silent mode and clear other

distractions away from your training area.

Camera is not allowed during 3 training sessions for any purposes Any violation will be reported.

MOU 2022- KPMG and UEL

On completion of 3 sessions, you should be able to:

✓ Understand the concept of data, dataset and database;

✓ Explain the role of data analysis and practical data analysis processes in auditing;

✓ Widen understanding of data analytics tools;

✓ Improve technical skills in data processing with Microsoft Excel (version 2016 or higher);

✓ Perform General Ledger & Trial Balance reconciliation;

✓ Understand the concept of Master Lead Sheet;

✓ Apply Power Query, Power Pivot & slicers in data processing; and

✓ Get familiar with applications of data analysis in auditing.

Table of Contents

Introduction

Session 1

1 Data, dataset & database

2 Data analysis & data processing

3 Data analytics tools

4 Microsoft Excel & basic functions

Interesting facts about data

✓ The worldwide data volume doubles every two years (Forbes, 2018)

✓ Every human created about 1.7 MB of data per second (Northeastern University, 2021)

✓ of all data in the world created in the last two years (Forbes, 2018)

✓ It would take ~ over 150 million years to all the data from the internet at 100 Mbps (~12 Mb/s)

✓ Between 2020 & 2024, unique/replicated data ratio is projected to change

from 1:9 to 1:10 (Statista, 2021)

✓ Only 0.5% of all data is ever analyzed and used (IDC, 2020)

✓ Over 80% of the data generated is unstructured (CIO, 2019)

✓ Data analytics top 4 benefits: 25% faster innovation cycles; 17% improved business efficiencies/higher productivity; 13% more effective R&D; and 12% product/service (Chicago Analytics Group)

Structured & unstructured database

Data Inflation

Bit (b) 1 or 0 The smallest piece of computer information or storage 1/8 of a character.

Byte (B) 8 bits The basic unit of computing One byte can store one character (e.g ‘A’, ‘$’, ‘x’)

Kilobyte (KB) 1,000, or 2 10 , bytes One page of typed text is 2KB

Megabyte (MB) 1,000KB, or 2 20 , bytes An MP3 song is about 4MB

Gigabytes (GB) 1,000MB, or 2 30 , bytes A two-hour film can be compressed into 1-2GB A 1GB text file contains over 1

billion characters

Terabyte (TB) 1,000GB, or 2 40 , bytes Common storage capacity of laptop’s hard drive in 2022

Petabyte (PB) 1,000TB, or 2 50 , bytes The movie Avatar needs about 1 PB of storage to render all graphics

Exabyte (EB) 1,000PB, or 2 60 , bytes If one Gigabyte is the size of the Earth, an Exabyte is the size of the Sun

Zettabyte (ZB) 1,000EB, or 2 70 , bytes Current data era ~80 ZB of data created by 2022 ( IDC’s Data Age 2025 study)

Yottabyte (YB) 1,000ZB, or 2 80 , bytes 1YB of data will be generated annually worldwide (Huawei)

— individual facts, statistics, or items (OECD Glossary of Statistical Terms, 2018)

— set of values of qualitative or quantitative variables about one or more persons or

objects (Australian Bureau of Statistics, 2013)

Example: 09052022 BP

I

➢ What is Dataset?

— a set/collection of data with a defined structure like arranged in rows and columns

— a collection or grouping of similar or related data assembled as a matter of record

(ODLIS, 2004)

Example: A General Ledger in tabular format, a VAS account mapping table

➢ What is Database?

— an organized collection of data stored as multiple datasets

— an organized collection of structured information, or data, typically stored electronically

in a computer system and usually managed or controlled by a Database

Management System (DBMS)

— Some of DBMS: Microsoft Access, Oracle, MySQL, SQL Server…

Example: financial service client use database to store all client-related information, loan & credit portfolio and manage it by MySQL

I

Define why you need data analysis

Data collection

Data sanitization Data analysis

Interpret results &

apply

DATA ANALYSIS PROCESS

I

I

(Anne Walsh, 2017) The most common file types for data extraction @ KPMG

Supporting communities depends on the popularity of the tools

I

✓ Quiz session 1 with 10 question in a MS Form

✓ An opportunity to quick check your understandings about session 1

✓ Try to do it by yourself

II

✓ Definition & nature of General Ledger

✓ Practical structures/formats of General Ledger

✓ Common fields in General Ledger:

✓ Definition & nature of Trial Balance

✓ Practical structures/formats of Trial Balance

✓ Common fields in Trial Balance:

✓ GL & TB reconciliation is the process in which we reconcile (compare):

• CB in TB PY with OB in TB CY (only if TB PY available)

CY: Current Year

PY: Prior Year

II

II

Master Leadsheet (“MLS”) is the summary of unaudited and audited financial statements which includes BS, PL, CF and note disclosures It is one of audit working paper with the purposes of:

✓ Get an overview to perform planning analytical review on unaudited FS and/or final analytical review on unaudited FS;

✓ Find out any abnormal fluctuation/movements by account; determine significant

accounts to design audit program/procedures;

✓ Is a source to determine engagement scope and materiality;

✓ To update Summary of Audit Differences (SAD) to get audited FS;

✓ Contains cross-references to a series of underlying working papers that provide

additional detail regarding each of the financial captions.

✓ Trial Balance – General Ledger – Master Leadsheet

✓ Master Leadsheet – BS working papers

✓ Master Leadsheet – PL working papers

✓ Trial Balance – General Ledger – Journal Entry Testing

✓ Trial Balance – General Ledger – Account Analysis

II

✓ Objective: to ensure Fixed Assets were recorded properly

• Perform general analytical review (AR) for fluctuation of fixed assets

• Obtain the movement of fixed assets in the period

• Perform AR for depreciation expense

• Check to fixed assets addition, disposals and written-off

• Check compliance with Circular 45/2021/TT-BTC

✓ Conclusion

II

✓ Quiz session 2 with 10 question in a MS Form

✓ An opportunity to quick check your understandings about session 2

✓ Try to do it by yourself

II

✓ Power Query is an ETL (Extract, Transform, Load) tool developed by Microsoft as an Excel add-in

✓ Mainly for data transformation & data preparation via Power Query Editor interface or Advanced Editor

✓ Use Power Query M (Mash-up) formula language

✓ Integrated in Microsoft Excel 2016 and later

III

III

✓ How to enable Power Pivot before using it for the first time?

— Step 1: Go to File - Options - Add-Ins.

— Step 2: In Manage box, select COM Add-ins – Go.

— Step 3: Tick the Microsoft Office Power Pivot box, and then click OK The ribbon now has a Power Pivot tab.

A data modeling technology with radical

features:

✓ Work with massive amounts of data.

✓ Create single Pivot Table that

combines data from separate tables

without writing a single VLOOKUP

In Power Pivot, just Create

Relationship.

✓ Use DAX (Data Analysis

Expression) language for analytics.

✓ Integrated in Microsoft Excel 2016

and later.

III

Attribute Power Pivot Table Regular Pivot Table Data sources Internal/External Excel data sheet,

SQL Server, Access, XML, Text…

Internal Excel data sheet only

Mix & match data

from multiple tables

Application for audit

engagements

GL Analysis/ Analyzing correspondence accounts posted against revenue account

III

✓

III

✓ Slicers provide buttons that you can click to filter tables or Pivot Tables In addition to quick filtering, slicers also indicate the current filtering state, which makes it easy to understand what exactly is currently displayed

III

✓ Slicer components:

1 A slicer header indicates the category of the items in

the slicer

2 A filtering button that is not selected indicates that the

item is not included in the filter

3 A filtering button that is selected indicates that the item

is included in the filter

4 A Clear Filter button removes the filter by selecting all

items in the slicer

5 A scroll bar enables scrolling when there are more

items than are currently visible in the slicer

6 Border moving and resizing controls allow you to

change the size and location of the slicer

✓ An audit procedure to obtain audit evidence that the journal entries and other

adjustments:

• are not materially misstated due to fraud;

• are appropriately supported;

• reflect the underlying events, conditions or transactions; and

• are recorded in the proper accounting period consistent with the financial reporting framework

✓ Practice @ KPMG:

1 Interview with clients to identify high risk routines/criteria

2 Obtain General Ledger & Trial Balance

3 Data processing

4 Perform Completeness Test

5 Identify high risk Journal Entries

6 Perform test of details and documentation

III

III

For a company operating in Food & Beverage industry, what

sales trend could be when:

1 Company reduce selling price by 10% leading to the increase

of sale volumn by 20%

2 Company lost some contracts with current suppliers

3 One of three storehouses of company is damaged due to

natural disaster

4 New entrants are easily to join the market

5 A minor change of current products meet consumers’

expectation

6 The city is locked down due to covid-19 pandemic

7 Tet holiday is approaching

✓ An in-depth analysis in sales performance of a business to identify any abnormal

points for further testing in several aspects

III

III

ABC is a company operating in the field of importing and distributing consumer

products of international companies in Vietnam market

Company’s product category includes Cake, Candy, Butter, Milk, Cheese, Convenience foods, Food supplement, Beverage, Spices & Ingredients…

Based on below charts on Sales of the company in the current year 2020 and prior year

2019, you - as an auditor - must perform preliminary analysis to identify whether any

abnormal features on sales performance.

You may use your own reasonable assumptions to support your analysis

III

Some questions you could consider for preliminary analysis:

1 How is the sales trend during the period? (Increase, decrease, fluctuate, bottom,

peak…)

2 What factors could affect on this trends? (quality, price, cost…)

3 How business & industry factors could affect company's operation? (trade war,

pandemic, disease, policies, seasonality, demands …

✓ Quiz session 3 with 10 question in a MS Form

✓ An opportunity to quick check your understandings about the whole training

✓ Try to do it by yourself

III

✓ Recall the content of all sessions

✓ An opportunity to practice, improve your technical and analytical skill

III

https://www.networkworld.com/article/3325397/idc-expect-175-zettabytes-of-data-worldwide-by-2025.html

https://www.techtarget.com/searchstorage/definition/yottabyte#:~:text=A%20yottabyte%20 is%20the%20largest,or%20a%20million%20trillion%20megabytes.

https://www.digitalinformationworld.com/2019/04/chart-global-data-creation-forecasts.html https://www-file.huawei.com/-/media/CORP2020/pdf/giv/Intelligent_World_2030_en.pdf https://www.dataversity.net/only-0-5-of-all-data-is-currently-analyzed/

Reference

https://docs.microsoft.com/en-us/deployoffice/compat/office-file-format-reference

Reference (continued)

worldwide/#:~:text=Excel%20is%20used%20by%20an,Microsoft's%20most%20important

https://irishtechnews.ie/seven-reasons-why-excel-is-still-used-by-half-a-billion-people-%20consumer%20product%20.

away/

https://exceed.hr/blog/power-query-powerful-excel-feature-you-should-start-using-right-https://p3adaptive.com/2017/05/dax-first-power-query-second/

https://powerquery.microsoft.com/en-us/

7901-4caa-ad80-028a6d2432ed

https://support.microsoft.com/en-us/office/power-pivot-overview-and-learning-f9001958- 488e-9410-5c75dbcb0f7b

https://support.microsoft.com/en-us/office/create-a-data-model-in-excel-87e7a54c-87dc- 7901-4caa-ad80-028a6d2432ed

https://support.microsoft.com/en-us/office/power-pivot-overview-and-learning-f9001958-https://slideplayer.com/slide/7556938/

https://lawtomated.com/structured-data-vs-unstructured-data-what-are-they-and-why-care/

http://digilib.k.utb.cz/bitstream/handle/10563/49919/bohunick%C3%BD_2021_dp.pdf?seq

Reference (continued)

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