employee / vendor matching version 109. objectives by the end of this course, you will be able to:...
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Employee / Vendor Matching
Version 109
Objectives
By the end of this course, you will be able to:
Identify some common methods for perpetrating fraud.
Use new techniques for identifying employee fraud.
Identify how to combine tables based on an address field.
Identify how to combine tables based on a phone number field.
Identify how to combine tables based on a direct deposit account number.
Identify relevant commands to prepare your data for investigation.
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What are your goals for this class?
Agenda
1. A Fraudulent Panorama
2. Sleuthing With ACL
3. Going Through The Motions
4. Revisiting The Process
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"World-class companies who leverage technology to strengthen internal controls spend 40% less on financial compliance and control than their average peer companies." - The Hackett Group
Poll Slide 4/48
"These economic downturns are very difficult to predict, but sophisticated econometric modeling houses like Data Resources and Chase Econometrics have successfully predicted 14 of the last 3 recessions"
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A Fraudulent Panorama
1
A Fraudulent Snapshot
U.S. companies lose an average of 7% of gross revenue to fraud every year. (ACFE)
$994 billion = the total cost of fraud. (ACFE)
75% of companies surveyed experienced at least one incident of fraud in the last 12 months. (KPMG)
The average cost to companies for each incident of fraud is $200,000. (ACFE)
Approximately 60% of all corporate fraud is committed by insiders. (PwC)
Approximately half of employees who commit fraud have been with their employers for over 5 years. (ACFE)
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http://www.auditnet.org/Webinars/APFraud20091202.pdf
page 5
Internal Fraud
Main Types of Employee-Level A/P Fraud:
Vendor Master File fraud
Kickback schemes
Check fraud
T&E Fraud
P-Card fraud
Collusion with suppliers
Electronic payments
Payroll fraud
Billing schemes (Shell companies/duplicate invoicing, etc.)
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source: Auditnet.org
Some Tell-Tale Signs of Fraud
Employee Name Matches Vendor Name
Employee Initials Match Vendor Name
Employee Telephone Matches Vendor Telephone
Employee Emergency Contact Name Matches Vendor Name
Employee Address Matches Vendor Address
Employee’s Dependent Address Matches Vendor Address
Employee Identification Number Matches Vendor Tax Number
Employee Direct Deposit Number Matches Vendor DDN
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Some Tell-Tale Signs of Fraud
Employee Name Matches Vendor Name
Employee Initials Match Vendor Name
Employee Telephone Matches Vendor Telephone
Employee Emergency Contact Name Matches Vendor Name
Employee Address Matches Vendor Address
Employee’s Dependent Address Matches Vendor Address
Employee Identification Number Matches Vendor Tax Number
Employee Direct Deposit Number Matches Vendor DDN
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Vendor Master File Fraud
How it works: Absence of controls over access to Vendor Master
File (VMF) allows dishonest employees to add fictitious suppliers.
Failure to "clean" VMF at least once per year may allow inactive ones to be used to commit billing fraud.
Fraudulent alteration of existing supplier data in VMF—such as payment instructions (changing from check to automated clearing house using employee’s bank account deposit data).
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source: Auditnet.org
Poll Slide 11/48
"Two men were examining the output of the new computer in their department. After an hour or so of analyzing the data, one of them remarked: "Do you realize it would take 400 men at least 250 years to make a mistake this big ?"
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Sleuthing With ACL
2
Taming The Data Jungle
Two Big Hoops: Data Consistency
Information is often entered into a database without consistent standards for spacing, capitalization, abbreviations or field segregation.
Data Cross-ReferencingEmployee and Vendor data is typically found in separate
tables which must be joined in order to find matches.
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"The goal is to transform data into information, and information into insight" - Carly Fiorina
First Things First
Two Main Data Sources: Employee Master Table
Vendor Master Table
Slide 14/48First Things First
"The world is full of obvious things which nobody by any chance ever observes" - Arthur Conan Doyle
Second Things Second
Data Consistency: Free-ranging capitalization
Extra spaces
Bonus Characters
Mixed Characters
Varied Field Formats
Typos
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"It is a capital mistake to theorize before one has data." - Arthur Conan Doyle
The Many Faces of the Beast
Employee Name on Record in Table 1:
Joe Smith
Vendor Names on Record in Table 2:
JoE SmiTH
JOESmITH
Joe_Smith Construction
Joe-Smith
Joe.Smith-Conference
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"If you make it easy for people to steal from you, they will." - Frank Abagnale, Special Investigator to the FBI
Whereabouts in the Boondocks
Employee Address on Record:
123 North Abagnale Road
Vendor Addresses on Record:
123A N. Abagnale
123 North-Abaganale
123 ABAGNALE RD
123 Abagnale North
#123-Abagnale Rd. N.
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The story of Little Blue Riding Hood is true. Only the color has been changed to prevent an investigation. - Stan Freberg
What was that number?
Variations on Telephone Numbers:
(604) 646-4285
604 646-4285
6046464285
604.646.4285
604 646 4285
+1.604.646.4285
604 646-4285x392
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You can bank on it
Variations on Bank Deposit Numbers:
123456789-123456789012
123456789 123456789012
123-12345-1234567
123-123456-123-456-7
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"Where large sums of money are concerned, it is advisable to trust nobody." - Agatha Christie
Let’s Get Along First Before We Marry
Key Field Matching Requirements:
Field in Employee Table and field in Vendor Table must besame data type (character, numeric or date)
identical formats
identical case
identical alignment
identical lengths
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"It has long been an axiom of mine that the little things are infinitely the most important" - Arthur Conan Doyle
Producing Progeny
Results from Harmonizations and Joins are displayed in newly created fields and tables.
Your functions for scrubbing data within your Key Fields output their results into new columns.
Your command for joining data between tables output their results into new tables.
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At the beginning of all experimental work stands the choice of the appropriate technique of investigation.
Walter Rudolf Hess
Phase 1: Making Functional Harmony
Key Commands For Case Harmonization
UPPER()UPPER( "SmiTH" ) = "SMITH"
LOWER()LOWER( "SmiTH") = "smith"
PROPER()PROPER("SmiTH") = "Smith"
Syntax for column contents
UPPER( field_name) converts all text within this column into uppercase
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Phase 1: Making Functional Harmony
Key Commands For Removing Spaces
ALLTRIM()ALLTRIM (" Smith ") = "Smith"
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Phase 1: Making Functional Harmony
Key Commands For Removing Characters
INCLUDE() INCLUDE("#123-(456)-(789)" , "0123456789" ) =
"123456789"
EXCLUDE()EXCLUDE ("#12 @ 3% & $4567.89 ", "#!$%@&.") =
"123456789"
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Phase 1: Making Functional Harmony
Key Commands Setting Field Length
SUBSTRING()SUBSTRING("Smith " , 1, 8) = "Smith "
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Phase 1: Reviewing Harmony with Keys
3 Main Steps:
1. Identify key fields within each table that must conform to an identical format between them.
2. Harmonize the data in each of the key fields by applying functions.
3. Send the resulting snapshot view of the modified copy of the data to a new column which conforms to your key standardization requirements.
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Phase 2: Connecting The Dots
Combine Key fields from two different tables to create a third table containing matched records.
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Phase 2: Many Connections
Join Types:
Matched Primary Records
Matched Primary, Include All Primary Records
Matched Primary, Include All Secondary Records
Matched Primary, Include All Primary and Secondary Records
Unmatched Primary Records
Many-To-Many Matched Records
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Phase 2: Many Connections
Join Types:
Matched Primary Records
Matched Primary, Include All Primary Records
Matched Primary, Include All Secondary Records
Matched Primary, Include All Primary and Secondary Records
Unmatched Primary Records
Many-To-Many Matched Records
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The Prenuptial Agreement
Requirements:
Primary and Secondary Tables must exist in the same ACL project.
Both files must be in the same location. (i.e. both local or both on the same AX Server)
Key fields in each table need to be harmonized.
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Quiz # 1
What are the two primary considerations which must be
addressed when performing a match analysis?
1. Data Location and Data Format
2. Data Integrity and Data Consistency
3. Data Access and Data Cross-referencing
4. Data Location and Data Access
5. Data Consistency and Data Cross-referencing
Quiz # 2 Slide 32/48
What are functions?
1. Built-in Commands used for identifying matches between fields.
2. Built-in Commands used for harmonizing data.
3. Built-in Commands used for scrubbing data.
4. Built-in Commands used for formatting data.
5. Built-in Commands used for automating specific tasks.
Quiz # 3 Slide 33/48
Identify the order in which the following steps need to be
followed:
Identify Key data fields in each table
Scrub the data in order to harmonize it between tables
Create new columns for storing clean data
Create new tables for storing the results of the newly joined data
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Going Through The Motions
3
Our Three Amigos
Demos for combining tables on:
Bank Deposit Account Number
Telephone Number
Employee Name
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"Anything that is illegal, the data is going to be suspect." - Vernon Briggs
Amigo Numero Uno
Joining on Bank Deposit Account Fields
Function Used
INCLUDE() INCLUDE("123-123456-123-456-7", "0123456789") =
"1231234561234567"
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Amigo Numero Uno Slide 37/48
Joining on Bank Deposit Account Fields
Demo
Amigo Numero Dos
Joining on Telephone Number Fields
Functions Used
VALUE()VALUE ("(555) 555-1234", 0) = -5,555,551,234
ABS()ABS(-5,555,551,234) = 5,555,551,234
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Amigo Numero Dos
Joining on Telephone Number Fields
Nesting Functions
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vendor_phone = (555) 555-1234
VALUE( vendor_phone, 0 ) = -5555551234
ABS( VALUE( vendor_phone, 0 )) = 5555551234
Amigo Numero Dos Slide 40/48
Joining on Telephone Number Fields
Demo
Amigo Numero Tres
Joining on Employee Name Fields
Functions Used
INCLUDE() INCLUDE("Joe Smith", "smith") = "mith"
UPPER()UPPER(“joe smith“) = “JOE SMITH”
ALLTRIM()ALLTRIM(“ joe smith ”) = “joe smith”
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Amigo Numero Tres
Joining on Employee Name Fields
Functions Used
SPLIT()SPLIT("Joe Smith Consulting", " ", 2) = "Smith"
BLANKS()BLANKS(5) = " "
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Amigo Numero Tres Slide 43/48
Joining on Employee Name Fields
Demo
Quiz # 4 Slide 44/48
Quiz # 5 Slide 45/48
Quiz # 6 Slide 46/48
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Revisiting The Process
4
Slide 48/48Your Questions
Questions You Have Asked
Slide 49/48Stepping Through It All
1. Open the relevant table.
2. Create a view containing the fields you are going to use.
3. Identify the key field(s) you will be working with to create your join.
4. Review the format of the key field(s) and determine what needs to be done to harmonize them.
5. Create Expressions using functions with the Expression Editor to harmonize your fields.
6. Create new columns containing computed fields to display your harmonized data.
7. Invoke the Join command and send the results to a new table for you to inspect.
Slide 50/48Stepping Through It All
1. Open the relevant table.
2. Create a view containing the fields you are going to use.
3. Identify the key field(s) you will be working with to create your join.
4. Review the format of the key field(s) and determine what needs to be done to harmonize them.
5. Create Expressions using functions with the Expression Editor to harmonize your fields.
6. Create new columns containing computed fields to display your harmonized data.
7. Invoke the Join command and send the results to a new table for you to inspect.
Slide 51/48Stepping Through It All
1. Open the relevant table.
2. Create a view containing the fields you are going to use.
3. Identify the key field(s) you will be working with to create your join.
4. Review the format of the key field(s) and determine what needs to be done to harmonize them.
5. Create Expressions using functions with the Expression Editor to harmonize your fields.
6. Create new columns containing computed fields to display your harmonized data.
7. Invoke the Join command and send the results to a new table for you to inspect.
Slide 52/48Stepping Through It All
1. Open the relevant table.
2. Create a view containing the fields you are going to use.
3. Identify the key field(s) you will be working with to create your join.
4. Review the format of the key field(s) and determine what needs to be done to harmonize them.
5. Create Expressions using functions with the Expression Editor to harmonize your fields.
6. Create new columns containing computed fields to display your harmonized data.
7. Invoke the Join command and send the results to a new table for you to inspect.
Slide 53/48Stepping Through It All
1. Open the relevant table.
2. Create a view containing the fields you are going to use.
3. Identify the key field(s) you will be working with to create your join.
4. Review the format of the key field(s) and determine what needs to be done to harmonize them.
5. Create Expressions using functions with the Expression Editor to harmonize your fields.
6. Create new columns containing computed fields to display your harmonized data.
7. Invoke the Join command and send the results to a new table for you to inspect.
Slide 54/48Stepping Through It All
1. Open the relevant table.
2. Create a view containing the fields you are going to use.
3. Identify the key field(s) you will be working with to create your join.
4. Review the format of the key field(s) and determine what needs to be done to harmonize them.
5. Create Expressions using functions with the Expression Editor to harmonize your fields.
6. Create new columns containing computed fields to display your harmonized data.
7. Invoke the Join command and send the results to a new table for you to inspect.
Slide 55/48Stepping Through It All
1. Open the relevant table.
2. Create a view containing the fields you are going to use.
3. Identify the key field(s) you will be working with to create your join.
4. Review the format of the key field(s) and determine what needs to be done to harmonize them.
5. Create Expressions using functions with the Expression Editor to harmonize your fields.
6. Create new columns containing computed fields to display your harmonized data.
7. Invoke the Join command and send the results to a new table for you to inspect.
Next Steps…
Feedback Survey
Downloadable MaterialHandout
Data files
Assessment with Printable Certificate
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