Data Structures and Caatts For Data Extraction: It Auditing, Hall, 3E

Chapter 8:
Data Structures and

CAATTs for Data
Extraction
IT Auditing, Hall, 3e
2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated,
or posted to a publicly accessible website, in whole or in part.
Data Structures
Two fundamental components:
Organization: the way records are
physically arranged on the secondary

storage device
Access method: technique used to
locate records and to navigate through

the database or file
2011 Cengage Learning. All Rights Reserved. May not beHall,

scanned,
copied or duplicated,
3e
Access:
Non-Index
Methods
INDEX
File
Access:
Index Methods
SEQUENTIAL
ISAM RANDOM
Hashing
Pointers
DATA File
Data
Organizatio
n
SEQUENTIAL
RANDOM
Hall, 3e
File Processing Operations

1.
2.
3.
4.
5.
6.
7.
Retrieve a record by key

Insert a record
Update a record
Read a file
Find next record
Scan a file
Delete a record

scanned,
3e
Individual
Records
Data Structures
Flat file structures
Sequential structure [Figure 8-1]
All records in contiguous storage spaces in specified
sequence (key field)
Sequential files are simple & easy to process
Application reads from beginning in sequence
If only small portion of file being processed, inefficient
method
Does not permit accessing a record directly
Efficient: 4, 5 sometimes 3

scanned,
3e
Data Structures
Indexed structure
In addition to data file, separate index
file
Contains physical address in data file
of each indexed record

scanned,
3e
Data Structures
Indexed random file [Figure 8-2]
Records are created without regard to physical

proximity to other related records
Physical organization of index file itself may be
sequential or random
Random indexes are easier to maintain, sequential
more difficult
Advantage over sequential: rapid searches
Other advantages: processing individual records,
efficient usage of disk storage
Efficient: 1, 2, 3, 7

scanned,
3e
Data Structures
Virtual Storage Access Method (VSAM) [Figure 8-3]
Large files, routine batch processing
Moderate degree of individual record processing
Used for files across cylinders
Uses number of indexes, with summarized content
Access time for single record is slower than Indexed
Sequential or Indexed Random
Disadvantage: does not perform record insertions efficiently
requires physical relocation of all records beyond that point
SOS
Has 3 physical components: indexes, prime data storage area,
overflow area [Figure 8-4]
Might have to search index, prime data area, and overflow
area slowing down access time
Integrating overflow records into prime data area, then
reconstructing indexes reorganizes ISAM files
Very Efficient: 4, 5, 6
Moderately Efficient: 1, 3
Inefficient: 2, 7

scanned,
3e
om
d
n
Ra
Legacy systems
M
A
S
l
a
i
t
n
e
u
q
e
S
1960
DBMS etc.
Legacy systems
1970
1980
1990
EVOLUTION OF ORG./ACCESS METHODS

Hall, 3e
Efficient
AM
S
V
l
a
i
t
n
e
u
q
e
S
Ra
nd
o
Inefficient
Access single records
Access entire files
Hall, 3e
10
Hashing Structure
Employs algorithm to convert primary key
into physical record storage address

[Figure 8-5]
No separate index necessary

Advantage: access speed
Disadvantage
Inefficient use of storage

Different keys may create same
address
Inefficient: 4, 5, 7

scanned,
3e
11
Pointer Structure
Stores the address (pointer) of related record in a

field with each data record [Figure 8-6]
Records stored randomly

Pointers provide connections b/w records
Pointers may also provide links of records b/w files
[Figure 8-7]
Types of pointers [Figure 8-8]:
Physical address actual disk storage location
Advantage: Access speed
Disadvantage: if related record moves, pointer must be changed

& w/o logical reference, a pointer could be lost causing
referenced record to be lost
Relative address relative position in the file (135th)
Must be manipulated to convert to physical address

Logical address primary key of related record
Key value is converted by hashing to physical address
Inefficient: 4, 5, 7

scanned,
3e
12
Database Conceptual
Models
Refers to the particular method used to

organize records in a database.
a.k.a. logical data structures
Objective: develop the database efficiently so

that data can be accessed quickly and easily.
There are three main models:
hierarchical (tree structure)
network
relational
Most existing databases are relational. Some

legacy systems use hierarchical or network
databases.
Hall, 3e
13
The Relational Model

The relational model portrays data in
the form of two dimensional tables.
Its strength is the ease with which
tables may be linked to one another.
a major weakness of hierarchical and

network databases
Relational model is based on the

relational algebra functions of restrict,
project, and join.
Hall, 3e
14
The Relational Algebra Functions

Restrict, Project, and Join
Figure 9-9
Hall, 3e
15
Associations and
Cardinality
Association
Represented by a line connecting two entities
Described by a verb, such as ships, requests, or
receives
Cardinality the degree of association

between two entities
The number of possible occurrences in one
table that are associated with a single
occurrence in a related table
Used to determine primary keys and foreign
keys
Hall, 3e
16
Examples of Entity Associations
Hall, 3e
17
Properly Designed Relational

Tables
Each row in the table must be unique in at

least one attribute, which is the primary
key.
Tables are linked by embedding the primary key

into the related table as a foreign key.
The attribute values in any column must all

be of the same class or data type.
Each column in a given table must be
uniquely named.
Tables must conform to the rules of
normalization, i.e., free from structural
dependencies or anomalies.
Hall, 3e
18
Three Types of Anomalies

Insertion Anomaly: A new item cannot
be added to the table until at least one
entity uses a particular attribute item.
Deletion Anomaly: If an attribute item
used by only one entity is deleted, all
information about that attribute item is
lost.
Update Anomaly: A modification on an
attribute must be made in each of the
rows in which the attribute appears.
Anomalies can be corrected by creating
additional relational tables.
Hall, 3e
19
Advantages of Relational Tables

Removes
all three types of

anomalies.
Various items of interest
(customers, inventory, sales)
are stored in separate tables.
Space is used efficiently.
Very flexible users can form
ad hoc relationships.
Hall, 3e
20
The Normalization Process
A process which systematically splits

unnormalized complex tables into
smaller tables that meet two conditions:
all nonkey (secondary) attributes in the table are

dependent on the primary key
all nonkey attributes are independent of the
other nonkey attributes
When unnormalized tables are split and

reduced to third normal form, they must
then be linked together by foreign keys.
Hall, 3e
21
Steps in the Normalization

Process
Hall, 3e
22
Accountants and Data

Normalization
Update anomalies can generate conflicting

and obsolete database values.
Insertion anomalies can result in
unrecorded transactions and incomplete
audit trails.
Deletion anomalies can cause the loss of
accounting records and the destruction of
audit trails.
Accountants should understand the data
normalization process and be able to
determine whether a database is properly
normalized.
Hall, 3e
23
Six Phases in Designing

Relational Databases
1.
2.
Identify entities
identify the primary entities of the

organization
construct a data model of their
relationships
Construct a data model showing

entity associations
determine the associations between

entities
model associations into an ER
diagram
Hall, 3e
24

3.
Add primary keys and attributes

assign primary keys to all entities in the
model to uniquely identify records
every attribute should appear in one or
more user views
4.
Normalize and add foreign keys

remove repeating groups, partial and
transitive dependencies
assign foreign keys to be able to link
tables
Hall, 3e
25

5.
Construct the physical database

create physical tables
populate tables with data
6.
Prepare the user views

normalized tables should support all
required views of system users
user views restrict users from having
access to unauthorized data
Hall, 3e
26
Auditors and Data Normalization
Database normalization is a technical matter

that is usually the responsibility of systems
professionals.
The subject has implications for internal control
that make it the concern of auditors also.
Most auditors will never be responsible for
normalizing an organizations databases; they
should have an understanding of the process
and be able to determine whether a table is
properly normalized.
In order to extract data from tables to perform
audit procedures, the auditor first needs to
know how the data are structured.

scanned,
3e
27
Embedded Audit Module (EAM)

Identify important transactions live
while they are being processed and

extract them [Figure 8-26]
Examples
Errors
Fraud
Compliance
SAS 109, SAS 94, SAS 99 / S-OX
scanned,
3e
28
Embedded Audit Module

Disadvantages:
Operational efficiency can decrease
performance, especially if testing is

extensive
Verifying EAM integrity - such as
environments with a high level of

program maintenance
Status: increasing need, demand, and
usage of COA/EAM/CA

scanned,
3e
29
Generalized Audit Software (GAS)

Brief history
Most widely used CAATT [Figure 8-19]
Usages include:
1) Footing and balancing entire files or selected data
items (e.g., extending inventory)
2) Selecting and reporting detail data

3) Selecting stratified statistical samples from data files
4) Formatting results into audit reports (auto work papers!)
5) Printing confirmations
6) Screening / filtering data
scanned,
3e
7) Comparing multiple files for differences
30
Generalized Audit Software

Popular because:
1. GAS software is easy to use and requires
little computer background
2. Many products are platform independent,
works on mainframes and PCs
3. Auditors can perform tests independently
of IT staff
4. GAS can be used to audit the data
currently being stored in most file
structures and formats
scanned,
3e
31
Generalized Audit Software

Simple structures [Figure 8-27]
Complex structures [Figures 8-28, 8-29]
Auditing issues:
Auditor must sometime rely on IT personnel to produce

files/data
Risk that data integrity is compromised by extraction
procedures
Auditors skilled in programming better prepared to avoid
these pitfalls

scanned,
3e
32
ACL
ACL is a proprietary version of GAS
Leader in the industry
Designed as an auditor-friendly meta-
language (i.e., contains commonly

used auditor tests)
Access to data generally easy with
ODBC interface
scanned,
3e
33
ACL
See ACL tutorial #1
Input file definition
Customizing a view
[Figure 8-31]
Filtering data
[Figures 8-34 thru 8-35]
Stratifying data [Figure 8-36]
Statistical analysis
scanned,
3e
34

Data Structures and Caatts For Data Extraction: It Auditing, Hall, 3E

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Data Structures and Caatts For Data Extraction: It Auditing, Hall, 3E

Uploaded by

Copyright:

Available Formats

Chapter 8:

Data Structures and

physically arranged on the secondary

Access method: technique used to

locate records and to navigate through

2011 Cengage Learning. All Rights Reserved. May not beHall,

File Processing Operations

Retrieve a record by key

2011 Cengage Learning. All Rights Reserved. May not beHall,

2011 Cengage Learning. All Rights Reserved. May not beHall,

Flat file structures

2011 Cengage Learning. All Rights Reserved. May not beHall,

Records are created without regard to physical

2011 Cengage Learning. All Rights Reserved. May not beHall,

2011 Cengage Learning. All Rights Reserved. May not beHall,

EVOLUTION OF ORG./ACCESS METHODS

Access entire files

into physical record storage address

No separate index necessary

Inefficient use of storage

2011 Cengage Learning. All Rights Reserved. May not beHall,

Stores the address (pointer) of related record in a

Records stored randomly

Advantage: Access speed

Disadvantage: if related record moves, pointer must be changed

Must be manipulated to convert to physical address

Key value is converted by hashing to physical address

2011 Cengage Learning. All Rights Reserved. May not beHall,

Refers to the particular method used to

Objective: develop the database efficiently so

Most existing databases are relational. Some

The Relational Model

a major weakness of hierarchical and

Relational model is based on the

The Relational Algebra Functions

Cardinality the degree of association

Examples of Entity Associations

Properly Designed Relational

Each row in the table must be unique in at

Tables are linked by embedding the primary key

The attribute values in any column must all

Three Types of Anomalies

Advantages of Relational Tables

all three types of

The Normalization Process

A process which systematically splits

all nonkey (secondary) attributes in the table are

When unnormalized tables are split and

Steps in the Normalization

Accountants and Data

Update anomalies can generate conflicting

Six Phases in Designing

identify the primary entities of the

Construct a data model showing

determine the associations between

Six Phases in Designing

Add primary keys and attributes

Normalize and add foreign keys

Six Phases in Designing

Construct the physical database

Prepare the user views

Auditors and Data Normalization

Database normalization is a technical matter