FAFD – Hyderabad

Course on MS Excel

by

CA Saran Kumar U
[email protected]
+91 702-234-5678
Date: 16th November 2018
 Facebook Vs Excel
Did anyone spent on any training, books, seminars etc., to learn FACEBOOK?

Why we need training sessions, seminars, books to learn MS Excel or any other
application?

????

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 Approach for new Application
 Primary objective of the application
 Inherent objective of the application
 Architecture of any new application

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 Forensic Audit Tools
 MS Excel
 Idea
 ACL

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 Basics Vs Advanced
 There is no concept of Basics
 There is no concept of Advanced
 But only Advanced Basics

To learn any application, one should learn the basics in advanced level.

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 Facebook Vs Excel
Did anyone spent on any training, books, seminars etc., to learn FACEBOOK?

Why we need training sessions, seminars, books to learn MS Excel or any other
application?

?????

6 CA Saran Kumar U +91 702-234-5678 [email protected]

 80:20 Approach

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 80:20 Approach

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 Things to remember to learn Excel
 Learn Basics in advanced level
 Think out of the box (example: Merging of Cells)
 Try to understand the intention of the command or formula or feature
(example: Equal Sign and Exact Function)
 Don’t try to learn more Functions but learn the rules of the Functions
 Nothings works without logics

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 Rules to write Formula
 Should starts with “Equal Sign” (=)
 Formula consists the one or more of the following:
 Cell reference
 Range
 Define Names
 Arthematic Operators
 Logical Operators
 Numbers
 Text
 Functions
 Text should always covers with “Double Quotes”
 Result of the Formula can be either a value (Text or Number) or Logical Result or
Error

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 Rules to write Functions
 There should be a valid Function name (Summ is not a valid function name)
 There should be an open parenthesis “(“ and close parenthesis “)” immediately
after the function name
 Arguments should be written between the open and close parenthesis “()”
 Each argument has to be separated with “Comma”
 An argument can be one or more of the following:
 Cell reference
 Range
 Define Names
 Numbers
 Text
 Logical Test
 Any other Function

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 Nested Functions
 If we use a Function as an argument of the other Function is called as
“Nested Function”

 User should be more careful while using the nested functions

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 Mandatory and Optional Arguments
One should observe the Function Syntax to find the mandatory arguments
and optional arguments

Example: Sum function, Vlookup function, Left function etc.

“Optional argument covers with square brackets”

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 Raw data to Formatted data
 Understanding the raw data source
 Understanding the raw data format
Import
 Importing to MS Excel (either Fixed Width or Delimited)
 Clean up activity
Format  Deletion of unnecessary rows and columns
 Clearing the unnecessary content

Analyze  Presenting in a proper tabular format with suitable

headings
 Analysing the data by using subtotal, sort, filter and
Interpret pivot table features
 Interpretation of clues taken out from the data

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 Data Importing
Hands-on with Excel – Refer the text file names
 Bank Statement - Aug'13
 Bank Statement - Jul'13
 Expired Sanction Limits - Delimited Import

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 Text Functions
Important Functions:
 Left, Right, Mid
 Search, Find
 Substitute, Replace
 Len, Concatenate
 Trim, Text
more..

Hands on with Excel in session – refer “Text Function Examples” file

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 Date Functions
Important Functions:
 Today, Now
 Date, Year, Month, Day
 Datedif, Weekday
more..

Hands on with Excel in session

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 Other Important Functions
 Vlookup
 Reverse Vlookup
 If
 Sumif(s)
more..

Hands on with Excel in session

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 What-if Analysis
 What-if analysis is the process of changing the values in cells to see how those
changes will affect the outcome of formulas on the worksheet
 Three kinds of What-if analysis tools are available with MS Excel
 Scenarios
 Goal Seek and
 Data Tables
 One variable Data Tables
 Two Variable Data Tables

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 Goal Seek – What if Analysis
Goal Seek is used to get a particular result when you're not too sure of the
starting value.

This is also called as “Back-Solving”.

For example, if the answer is 56, and the first number is 8, what is the
second number?

(Hands-on with Excel) (Refer the Excel files “Goal Seek 1” and “What-if
analysis”)

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 Data Table – What-if Analysis
 Data tables are useful to see all the outcomes are at one place, whenever
a formula uses one or two variables, or multiple formulas that all use one
common variable
 Using data tables makes it easy to examine a range of possibilities at a
glance

(Hands-on with Excel) (Refer the Excel file “What-if analysis”)

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 Scenario Manager – What-if Analysis
 A Scenario is a set of values that Excel saves and can substitute
automatically, whenever executed
 User can make a summary of report for all the scenarios created.
Summary report displays all scenario information in tabular format on a
new worksheet

(Hands-on with Excel) (Refer the Excel file “What-if analysis”)

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 Consolidation of Different Data Sets
Excel offers different methods for performing the consolidation of different
data sets which are as follows:
 Simple Formula with arithmetic operator of Addition (+)
 Spearing Formula
 The “Consolidate” command

(Hands-on with Excel) (Refer the Excel file “Consolidation of Data Sets”)

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 Benford’s Law
 Benford’s Law is also called the “First-Digit Law”
 Benford’s Law predicts the occurrence of digits in large sets of data
 Simply put, this law maintains that we can expect some digits to occur
more often than others
 For example, the numeral 1 should occur as the first digit in any multiple-
digit number about 30.1% of the time, while the numeral 9 should occur
as the first digit only 4.6% of the time

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 Benford’s Law Occurance
Occurrence of ‘x’ as first digit = Log10(1/x+1)
Occurrence of 1 = Log10(1/1+1) = 30.10%
Occurrence of 2 = Log10(1/2+1) = 17.61%
Occurrence of 3 = Log10(1/3+1) = 12.49%
Occurrence of 4 = Log10(1/4+1) = 9.69%
Occurrence of 5 = Log10(1/5+1) = 7.92%
Occurrence of 6 = Log10(1/6+1) = 6.69%
Occurrence of 7 = Log10(1/7+1) = 5.80%
Occurrence of 8 = Log10(1/8+1) = 5.12%
Occurrence of 9 = Log10(1/9+1) = 4.58%

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 Benford’s Law Vs Red Flag
 When someone creates false transactions or commits a data-entry error,
the resulting numbers often deviate from the law’s expectations
 This is true when someone creates random numbers or intentionally
keeps certain transactions below required authorization levels
 For example, in 2008, Bernie Madoff created fictitious data to hide an
estimated $65 billion in losses resulting from Madoff’s investment Ponzi
scheme

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 Benford’s Law Conditions
 The numbers in the data set should describe the same object
 There should be no built-in maximum or minimum to the numbers
 The numbers should not be assigned
 Example: Invoice Numbers, Bank Account Numbers, Telephone Number etc
 Does not apply to uniform distribution

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 Practical Case Studies
http://www.nseindia.com/products/content/all_daily_reports.htm

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 Relative Size Factory (RSF) Theory
 Relative Size Factor is to identify anomalies where the largest number is
out of the line with the remaining numbers
 The relative size factor (RSF) test is an important error-detecting test

 RSF = Largest number in the Subset / Second largest number in the subset

Hands on with Excel in session – refer “Relative Size Factor Theory

(RSF) - Case Study” file

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 Luhn Algorithm
 The Luhn Algorithm or Luhn Formula, also known as the “modulus 10” or
“mod 10” algorithm
 The Luhn Algorithm is a simple checksum formula used to validate a
variety of Identification numbers
Example: Credit Card Numbers, IMEI Numbers etc

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 Check digit validation
 To generate the check digit, the Luhn formula is applied to the number
 From the rightmost digit, which is the check digit, moving left, double the
value of every second digit; if the product of this doubling operation is
greater than 9 (e.g., 8 × 2 = 16), then sum the digits of the products (e.g.,
16: 1 + 6 = 7, 18: 1 + 8 = 9)
 Take the sum of all the digits
 If the total modulo 10 is equal to 0 (if the total ends in zero) then the
number is valid according to the Luhn formula; else it is not valid.

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 Credit card check digit validation
Digit 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

Credit
Card 4 8 9 3 7 7 2 4 0 0 8 7 0 8 4 2

Step-1 8 8 18 3 14 7 4 4 0 0 16 7 0 8 8 2

Step-2 8 8 9 3 5 7 4 4 0 0 7 7 0 8 8 2

Step-3
Total = 8+8+9+3+5+7+4+4+0+0+7+7+0+8+8+2 = 80

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 Common Data Types & Data Structures (1/2)
 Data is generally organized into files or tables
 A table can be thought of as a two dimensional matrix of data
 Each Row represents a single record
 Each Column represents a data field
 Each data column, or field, may have a different data type
 Data types determine how data is interpreted, and also what data format
is considered valid
 For Ex: Data can be a date, a number, or plain text
 Invalid data in a table is often a sign of some other problem

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 Common Data Types & Data Structures (2/2)
 Often, each record in a table may have a unique identifier, like an
employee, customer, or Transaction ID etc
 When one table uses this identifier to reference records in another table, this
is called a relational database
 Relational databases are a very useful way to organize data
 Many data bases are built using some kind of relational database format

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 Think Box
Why these numbers in this particular order???

8 5 4 9 1 7 6 3 2 0

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 Thanks for your patient hearing!!!

CA Saran Kumar U
B.Com., A.C.A, FAFD (ICAI)

PH: +91 702-234-5678

[email protected]

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