Data and Text Mining - AuditSoftware.Net

sentencehuddleData Management

Nov 20, 2013 (3 years and 4 months ago)

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Using Data Mining to Save Time and
Help You Look Like A Star

Irina Sered

Executive VP

www.wizsoft.com

What is Data Analysis

Data analysis is the process of accessing the
data looking for information to support a
hypothesis.

There are three types of tools:


Query tools


Report writers


OLAP tools

What is Data Mining

Data mining is the process of revealing valuable
information and discovering previously
unknown relationships that exist in large
amounts of data.

The process complements standard statistical
analysis to reveal patterns in data that
translate into actionable information.

Data mining sorts through the data and
uncovers the critical information you need for
strategic decision
-
making.




Data and Text Mining

WizRule

WizWhy

WizSame



What We Do

WizSoft develops and markets software products based on
mathematical algorithms for the business sector in the
following fields:



data mining


data auditing


concept
-
based search engines


ERP

Data Mining Tools for Auditors



WizRule



business rule detector



WizSame



duplicate records discovery



WizWhy



analyzer and predictor


Data Mining Tools for Auditors

WizRule



business rules detector

for
data auditing performs a complex
analysis of the data revealing
inconsistencies
,
errors

and
cases to
be audited

(investigated).

Data Mining Tools for Auditors


WizSame



duplicate records discovery
,
analyzes
one

data set,
or

compares
records in
two

data sets and reveals
similar records suspected as being
duplicates.

Data Mining Tools for Auditors

WizWhy



analyzer and predictor
,
determines how the values of
one field

(dependent variable) are affected by the
values of other fields.

The resulting model consists of a set of
IF
-
THEN, IF
-
THEN
-
NOT

and
IF
-
AND
-
ONLY
-
IF

rules
that describe valid associations between
various values of the dependent variable and
the values of other fields.


Data Mining Tools for Auditors

WizWhy

points out:



main

patterns in the data



summarizes the data



lists unexpected rules



lists unexpected cases

in the data


Example of Unexpected Rule

(
basic rule 1
) If

BANK is
Bank1




Then
DEFAULT is
yes




Rule’s probability
: 0.50


(
basic rule 2
) If

AGE is
17.00 … 20.00

(average = 18.61)




Then
DEFAULT is
yes




Rule’s probability
: 0.50


(
unexpected rule
) If

AGE is
17.00 … 20.00

(average =
18.61
)





and
BANK is
Bank1





Then
DEFAULT is
yes





Rule’s probability
: 0.05



Plain English Statements

if there is a 50% chance that a loan from
BANK1 will default and

if there is a 50% chance that a loan made to
someone under the age of 20 will default,

then it is
unexpected

that if a loan granted from
BANK1 to someone under the age of 20 has
only a
5%
chance of

default….

In conclusion:


Auditors would want to investigate
whether such
unexpected rules

are the
result of spurious data, or whether they
illuminate some underlying situation of
which management was not aware.

Data Mining compliments Query Reporting

Query based


Requires a hypothesis



Subjective interpretation



Lots of reports and
queries

Data Mining


No hypothesis necessary



Objective analysis



Critical few deviations

Summary Benefits


WizRule, WizWhy, WizSame are complementary tools
to any query
-
based audit



Data integrity issues can waste auditors’ time … learn
“what you don’t know” before relying on data



Get an automated statistician to join the audit team



Focus on the critical few deviations with no training
and minimal effort



Look like a star in your next audit by finding what no
one else could find in the data



About Us

516
-
393
-
5841

www.wizsoft.com


Fully owned subsidiary of WizSoft Ltd. (1983)


Headquarters in Tel
-
Aviv, Israel


US office in Syosset, NY


30,000 customers world wide


170 employees


18 sales and services offices