How Internal Auditors can win The War against Spreadsheet Fraud

To prevent another round of million dollar scandals due to fraudulent manipulations on spreadsheets, regulatory bodies have launched major offensives against these well-loved User Developed Applications (UDAs). Naturally, internal auditors are front and center in carrying out these offensives.

While regulations like the Sarbanes-Oxley Act, Dodd-Frank Act, and Solvency II can only be effective if end users are able to carry out the activities and practices required of them, auditors need to ascertain that they have. Sad to say, when it comes to spreadsheets, that is easier said than done.

Because spreadsheets are loosely distributed by nature, internal auditors always find it hard to: locate them, identify ownership, and trace their relationships with other spreadsheets. Now, we’re still talking about naturally occurring spreadsheets. How much more with files that have been deliberately tampered?

Spreadsheets can be altered in a variety of ways, especially if the purpose is to conceal fraudulent activities. Fraudsters can, for instance:

hide columns or rows,
perform conditional formatting, which changes the appearance of cells depending on certain values
replace cell entries with false values either through direct input or by linking to other spreadsheet sources
apply small, incremental changes in multiple cells or even spreadsheets to avoid detection
design macros and user defined functions to carry out fraudulent manipulations automatically

Recognising the seemingly insurmountable task ahead, the Institute of Internal Auditors released a guide designed specifically for the task of auditing user-developed applications, which of course includes spreadsheets.

But is this really the weapon internal auditors should be wielding in their quest to bring down spreadsheet fraud? Our answer is no. In fact, we believe no such weapon has to be wielded at all?because the only way to get rid of spreadsheet fraud is to eliminate spreadsheets once and for all.

Imagine how easy it would be for internal auditors to conduct their audits if data were kept in a centralised server instead of being scattered throughout the organisation in end-user hard drives.

And that’s not all. Because a server-based solution can be configured to have its own built-in controls, all your data will be under lock and key; unlike spreadsheet-based systems wherein storing a spreadsheet file inside a password-protected workstation does not guarantee equal security for all the other spreadsheets scattered throughout your company.

Learn more about Denizon’s server application solutions and discover a more efficient way for your internal auditors to carry out their jobs.

More Spreadsheet Blogs

Spreadsheet Risks in Banks

Top 10 Disadvantages of Spreadsheets

Disadvantages of Spreadsheets – obstacles to compliance in the Healthcare Industry

How Internal Auditors can win the War against Spreadsheet Fraud

Spreadsheet Reporting – No Room in your company in an age of Business Intelligence

Still looking for a Way to Consolidate Excel Spreadsheets?

Disadvantages of Spreadsheets

Spreadsheet woes – ill equipped for an Agile Business Environment

Spreadsheet Fraud

Spreadsheet Woes – Limited features for easy adoption of a control framework

Spreadsheet woes – Burden in SOX Compliance and other Regulations

Spreadsheet Risk Issues

Server Application Solutions – Don’t let Spreadsheets hold your Business back

Why Spreadsheets can send the pillars of Solvency II crashing down

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Malware

In the past, viruses were created with the sole purpose of wreaking havoc on the infected systems. A large fraction of today’s malware, on the other hand, are designed to generate revenues for the creator. Spyware, botnets, and keyloggers steal information from your system or control it so that someone else can profit. In other words, the motivation for making them is now more attractive than before.

Keyloggers can reveal your usernames, passwords, PIN numbers, and other authentication information to their creators by recording your key strokes. This information can then be used for breaking into various accounts: credit cards, payment programs (like PayPal), online banks, and others. You’re right, keyloggers are among the favourite tools of individuals involved in identity theft.

Much like the viruses of old, most present day malware drain the resources, such as memory and hard disk space, of contaminated systems; sometimes forcing them to crash. They can also degrade network performance and in extreme cases, may even cause a total collapse.

If that’s not daunting enough, imagine an outbreak in your entire organisation. The damage could easily cost your organisation thousands of euros to repair. That’s not even counting yet the value of missed opportunities.

Entry points for malware range from optical disks, flash drives, and of course, the Internet. That means, your doors could be wide open to these attacks at this very moment.

Now, we’re not here to promise total invulnerability, as only an unplugged computer locked up in a vault will ever be totally safe from malware. Instead, this is what we’ll do:

Perform an assessment of your computer usage practices and security policies. Software and hardware alone won’t do the trick.
Identify weak points as well as poor practices and propose changes wherever necessary. Weak points and poor practices range from the use of perennial passwords and keeping old, unused accounts to poorly configured firewalls.
Install malware scanners and firewalls and configure them for maximal protection with minimal effect on network and system performance.
Implement regular security patches.
Conduct a regular inspection on security policy compliance as well as a review of the policies to see if they are up to date with the latest threats.
Keep an audit trail for future use in forensic activities.
Establish a risk management system.
Apply data encryption where necessary.
Implement a backup system to make sure that, in a worst case scenario, archived data is safe.
Propose data replication so as to mitigate the after effects of data loss and to ensure your company can proceed with ‘business as usual’.

Once we’ve worked with you to make all these happen, you’ll be able to sleep better.

Other defences we’re capable of putting up include:

Making Click-and-Collect click

In my previous post, I introduced you to integrated e-commerce and explained why it is the right way to extend your business online. If you already have a brick-and-mortar retailing business and you’re looking to improve your online presence, you could start offering a click-and-collect service.

With click-and-collect, customers order online and then collect their merchandise from one of the retailer?s local branches. Why would they want to do that?

Apparently, there are buyers who now prefer a click-and-collect service over the delivery service of a purely online retailer. With the latter, they sometimes have to wait forever for the delivery van to arrive or contend with a missed-delivery card.

Basically, customers who want both the convenience of placing orders online and better control of their time find click-and-collect a better option.

Last December 2011, IMRG (Interactive Media in Retail Group) reported a ?significant rise in the percentage of click-and-collect e-retail sales in the 3rd quarter of 2011?. This accounted for 10.4% of all e-retail sales in that quarter. More specifically, the gain was 7.4%, which was also the strongest quarterly gain since IMRG started collecting this data.

Clearly, this particular service is gaining popularity. But how do you meet the rising demand in this area?

A click-and-collect service requires a highly synchronised ecosystem. You don’t want to have a customer order items from your online store, drive a couple of minutes from his house to your nearest outlet, only to find out that one of the items is no longer available.

This can only work if all systems involved are interconnected. Changes in the inventory in your individual outlets should reflect on your database in real time. In turn, these changes have to be reflected instantly on your online store. Conversely, once a buyer has picked items online and is already directed to a local outlet, those items have to be reserved there.

But that’s not all. Your system has to be seamless enough to support fast and reliable service. You don’t want your buyer to have to wait a long time before the items are ready for pick-up. It also has to be capable of tracking the status of ordered products, handling uncollected orders, and monitoring inventory.

By implementing an integrated e-commerce system, these won’t be the only things you?d be able to do. You can even add more value to your service. For example, you can connect to your CRM and learn more about your customers? purchase history, buying habits, and preferences.

That way, it would be easier for you to provide a faster and more convenient buying experience for them in the future.

Click-and-collect is a very promising way to increase your sales and improve customer loyalty.

Successful Engineer Communication With FieldElite

Technological innovations have been on the rise in the recent past. Our news media are awash with new technologies that are being released in almost every industry. From smart buildings to sophisticated gadgets, every industry has a technological invention to flaunt.

One area in which technology has blossomed is the field service. In the field service management, things have moved a notch higher. Right from communication, document management, monitoring and evaluation, to information storage, nothing remains where it was a couple of years ago. You no longer have to carry clipboards around to do your inspections or pile files in the office. You no longer have to wait for your field service employees to return to the office before you can receive reports. By using a field service management software like FieldElite, you have it all done at a click.

With FieldElite, you’ve got everything under control right from the comfort of your office. Provided you’re doing what you need to do and posting updates using the app, the rest will fall into place. Your employees will receive updates from you and vice versa. If there is a client who needs attention, they can easily issue a request through the app and the next available field service officer who?s within proximity will pick it up and attend to the customer?s needs.

Everything is just a click away. Sounds great, right?

FieldElite is a robust field service management software that’s packed with a wide array of tools meant to simplify communication between the office and the field service employees. With FieldElite, you can reach all your engineers at one go.

Below are a few of the communication features that make FieldElite the software of choice when it comes to field service management.

Simplified Communication

It’s very important to stay in touch with your engineers in the field to monitor the ongoing activities. For this reason, you need to choose a platform that doesn’t complicate the process. You don’t want important information to reach your team late. That would drag your activities.

Fast and effective communication is, therefore, very key in field service. FieldElite has consequently been made to simplify communication in the field service. Its simplicity can be compared to the usual consumer messaging apps. On the back-end, however, there are very many complex procedures executed through refined algorithms meant to process information and generate instant reports for engineers, supervisors, and the rest of the company team members.

With the FieldElite app, communication is as easy as dropping a message in the team members? inbox. Again, the app?s communication system is centralised and, thus, every communication trail is easily retrievable. You don’t need different apps for messaging, audio and video calling, and document sharing. You have it all in FieldElite. Simply put, FieldElite is an all-in-one field service management tool that ropes in all essential digital modes of communication.

But what’s the benefit of having all work-related communication in one place?

With an all-in-one communication platform like FieldElite, you’ll cut down on wasted time and field tech frustration. Again, any urgent information will reach your engineers on time, and none of them will be left out. What’s more? With effective communication, expect the performance of your team to shoot up.

Consistent Communication

Field technicians, in this case engineers, need to be kept on toes to get the job done. You can only achieve this by communicating with them more often. Therefore, you need a field service management platform that can offer you that. Most field service management software facilitates constant communication with team members in the field. Even so, not all are as good as you expect. So, you’ve got to be a bit more critical when choosing a field service management software for your business.

A good field service management software is one that enables you to regularly check in with field techs to make sure that they have everything they need. With FieldElite, you can achieve more than this. FieldElite app allows you to communicate with your engineers from time to time through messages, calls, or shared documents. Again, the team gets information at the same time.

So, how important is regular communication with your business?

Keeping in touch with your team members in the field helps you build strong relationships with them. Additionally, you can easily spot areas that need improvement that otherwise could have been hidden from your viewpoint. What’s more? Employees feel valued when you check on them from time to time. As a result, this will boost their overall productivity, which contributes positively to the well-being of your business.

So, take your business to another level by making use of FieldElite communication tools to reach out to your engineers at any time.

Two-Way Communication

Communication in field service can only be successful if you can get feedback from your field techs. As such, the field management software should make it easier for your engineers to notify you of anything that needs urgent attention. With the FieldElite app?s communication features, your engineers can give you real-time updates from any device. The app is compatible with any android device, and, therefore, the field techs can use their smart handsets to communicate important information.

The messaging and calling features are easy to manipulate, and with a little training, anyone can use them easily. Again, FieldElite allows you to make group calls or send many messages at the same time. Therefore, in case you?d like to talk to the entire team, you can choose to make a group call or send out bulk messages.

Real-Time Updates

With FieldElite, you don’t need to wait until you meet your team to communicate any changes. You can notify your team on any work-related changes anytime, and as many times as is necessary. The good thing about FieldElite is that the information reaches all your engineers instantly and at the same time. Provided there?s strong network coverage, you’ll not have to deal with delayed communication. Again, your field techs can always get back to you in case they need clarifications on some matters.

Timely updates are very necessary for field service management. Field techs that get real-time updates tend to be more productive than those who get information late. At least they can make necessary changes on time to avoid wasting time on tasks that aren’t urgent. Therefore, make use of FieldElite communication features to keep your engineers updated.

Would you like to take your business to another level? Well, it’s time to improve communication with your field techs. Get the FieldElite android app for successful communication with your engineers.