DATA ANALYTICS A practitioners perspective

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1 DATA ANALYTICS A practitioners perspective Forensic Accounting Conference ICAI Bangalore Branch Feb 2016 Mumbai Pune Hyderabad New Delhi Chennai Bengaluru

2 WHAT IS ANALYTICS? 01 The scientific process of transforming data into insight for making better decisions. 02 It is the discovery and communication of meaningful patterns in data. 03 Analytics often involves studying past: - historical data to research potential trends, - to analyze the effects of certain decisions or events, or - to evaluate the performance of a given tool or scenario

3 ANALYTICS AND ITS TYPES Descriptive Analysis Its to analyse information to know what is happening. This is where one understand facts Diagnostic Analysis This is to analyse why did certain things happen. Understanding the root cause of a trend / pattern Predictive Analysis Understanding how a pattern would perform in future Prescriptive Analysis This is to determine future course of action based on the trend

4 CODES USED IN SAP Type of Codes Transfer Types MB1B Transfer Posting LT01 Create Transfer Order ABUMN transfer within Company Codes MF65 Stock Transfer for reservation Movement Types 101 Goods received for Purchase 122 returned delivery to vendor 161 Returns for Purchase orders 261 Goods Issue for an Order Transaction Types Goods Receipt Note Consumption Accounting Movement to Scrap Goods Sent to Vendor for Job work

5 CASE STUDY Responsible for inventory levels & provisions Warehouse Manager Inventory levels were increasing Materials sent for repair is recorded as received To reduce provisions 25 th to 31 st GOOD SCRAP 2 nd 5 th Review Inventory became negative during month end Materials at customer locations were recorded as received back Transfers were made between scrap and good storage locations Series of SAP movement entries + Inconsistent weighted average prices Exchanging high value material with low value materials

6 ELEMENTS OF DATA ANALYTICS Data - Structured / Unstructured - Descriptive or Numbers Process - Standards - Threshold - Stages of data movement - Data updation - Data reliability Skill & Tools - Analytical - Process - SQL, Idea, ACL, SAS

7 Control Exception s INTERNAL AUDIT AND FRAUD DETECTION Correlatio n Analysis Pattern Trend Analysis

8 GATHERING RELEVANT INFORMATION Security Register Documents Physical Verification Invoices Scrap Records Guard / Security Personnel People Auditor Sales Representative Production Manager

9 DATA ANALYTICS -STILL IN EARLY STAGE Multiple Sources Unrecognised Patterns / Low awareness on pattern recognition Reasons Reliance on Tools than techniques Unstructured data False positives

10 CONTACT US Mumbai Pune Hyderabad New Delhi 19 Adi Marzban Path Ballard Estate Fort Mumbai t: VEN Business Centre Baner-Pashan Link Road Pashan Pune t: /3/1 SSK Building Ranga Raju Lane Road 1, Banjara Hills Hyderabad t: B-376 Nirman Vihar New Delhi t: Chennai Bengaluru Toronto 3 Crown Court 128 Cathedral Road Chennai t: /313 Barton Centre Mahatma Gandhi Road Bengaluru t: The East Mall Toronto ON M9B 3Z1 Canada t: skpgrp.info@skpgroup.com Subscribe Connect with us

11 DISCLAIMER Credits: Icon and Shape The contents herein are solely meant for communicating information and not as professional advice. It may contain confidential or legally privileged information. The addressee is hereby notified that any disclosure, copy, or distribution of this material or the contents there of may be unlawful and is strictly prohibited. Also the contents can not be considered as any opinion/advice and should not be used basis for any decision. Before taking any decision/advice please consult a qualified professional adviser. While due care has been taken to ensure the accuracy of the information contained herein, no warranty, express or implied, is being made by us as regards the accuracy and adequacy of the information contained herein. SKP Business Consulting LLP shall not be responsible for any loss whatsoever sustained by any person who relies on this material.

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