Top Recommendations for Software Buyers 4/19/05

1. Top Recommendations for Software Buyers4/19/05 Presented By: Richard B. Lanza, CPA, CFE, PMP

2. Audit, Anti-Fraud, and Assurance Software * - Taken from the 2005 Buyer’s Guide to Audit, Anti-Fraud, and Assurance Software

3. CPA2Biz Audit & Control Technology Store

4. CPA2Biz Audit & Control Technology Store • Launching in May 2005, the Technology Store will be the place for auditors and other industry professionals to obtain: • Practical solutions that are not highly complex or difficult to implement. • Products that work to improve audit quality, increase audit efficiency, detect fraud, and/or enhance company’s internal controls. • Discounted software tools for CPA2Biz customers • Independent and practical advice and education around implementing and using these software products

5. Discover The Secrets Of A Proven Tech Consultant • Utilizing my 13 years experience in ALL tools Saving hundreds of millions of dollars for clients • Maximizing the software you have • Allowing you to focus on what you do best Get results fast by:

6. Top Three Best Practices From the 2005 Buyer’s Guide • Get your process down first • Automate cash return out of the box • Integrate your data

7. It’s the Process…Right? * - Taken from the 2005 Buyer’s Guide to Audit, Anti-Fraud, and Assurance Software

8. The Process is Generally the Same * - Taken from the 2005 Buyer’s Guide to Audit, Anti-Fraud, and Assurance Software

9. Automation Paradigm Shift

10. Where Are Your Cash Recoveries? • Accounts Payable • Telecommunications • Advertising Spend • Fraud ………Where else is your company prone to leaving cash on the table?

11. Baseline Automated Routines

12. Vendor Scoring Analysis • Vendors with low transaction, high dollar activity - 10 • Vendors with missing information (Tax ID, Telephone, Address, etc.) - 10 • Vendors with a high proportion of round dollar payments. - 15 • Invoices that are exactly 10x, 100x or 1000x larger than another invoice. - 20 • Payments to any vendor that exceed the twelve month average payments to that vendor by a specified percentage (i.e., 200%) or 3x the standard deviation for that vendor. - 20 • Vendors paid with a high proportion of manual checks. - 15 • Vendors with little or no sequence between invoice numbers. - 15

13. There’s Gold In That There Data * - Taken from the 2005 Buyer’s Guide to Audit, Anti-Fraud, and Assurance Software

14. Billing Scheme Example * - Taken from Proactively Detecting Fraud Using Computer Audit Reports

15. Data Mining Compliments Query Reporting Query Based • Requires a hypothesis • Lots of reports and queries • Subjective interpretation • Training necessary to run reports Data Mining No hypothesis necessary Critical few deviations Objective analysis Little training to run reports

16. Stratify Data - Results * - Screen shot of ActiveData for Excel

17. Benford’s LawHigh-Level View

18. Scatter Graph

19. Top Three Best Practices From the 2005 Buyer’s Guide • Get your process down first • Automate cash return out of the box • Integrate your data