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Level II: Statistical Data Analytics for Fraud, Waste & Abuse and Quick Response Audits (Computer Hands-on in Excel)

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Date(s): Jan 24, 2018
Time: 8:30AM - 5:00PM
Registration Fee: $553.00
Cancellation Date: Jan 17, 2018
City: Austin

Course Description

In this course we will learn how to construct statistical bounds for non-linear data and address such topics as seasonality. Additional topics range from a refresher of the first course to a deeper dive into multivariate models. Constant dollars, finding the fixed cost, forcing the model to “no” fixed cost, vastly improved Risk assessment via constructing quartiles (see chart at right), data validation (at 99% confidence), collapsing models (via p-values), residuals, stepwise regression, charting more than 2 dimensions are also covered in this course. Finally, we’ll jump into Visual Basic to construct management dashboards to provide business intelligence and an improved Control Environment.

Note: This course is a Continuation of Advanced Statistical Analytics. Please see prerequisites prior to registering.

Laptops are provided.

Potential CPE Credits: 8.0
Govt Hours: This class meets 8.0 hours of the 24-hour requirement for governmental CPE under Government Auditing Standards (yellow book), in most cases.
Technical Hours: This class meets 8.0 CPE credits of technical training in compliance with Texas Admin. Code Rule 523.102.

Instruction Type: Computer Based
Experience Level: INTERMEDIATE
Category: Auditing

Course Objectives

           Refresh yourself as to the mechanics of regression analysis

           Learn how to run complex regression applications (non-linear bounds, p-values, stepwise)

           Discover how to eliminate the seasonality from data

           Recognize the vast benefits of forecasting…and how to do it

           Enhance your audit reports with multiple data series (benchmarking)

           Decompose repressible data into it’s fixed and variable components

           Apply regression in audits where previously thought too difficult

           Provide more value to the auditee

           Constructing management dashboards

           Assist in risk management and risk mitigation

           Improve the Control Environment

           Discuss (and learn from) the pitfalls from your applications of regression (bring your data to class if you like): consider this a forum for a dialogue on “wins” and “non-wins” on actual attempts to run regression in audit engagements


Course Outline


1.   Introduction

      a. Course Objectives

      b.  Refresher of WHY to run regression and other advanced analytics

      c.  Emerging issues in the literature, from stakeholders and

      d.  Other developments

2.   Advanced regression Concepts

      a. Constructing Prediction Intervals for non-linear data (Case Study)

      b. Eliminating the Fixed cost from regression data (Case Study)

      c. Labeling series of data and benchmarking (Case Study)

      d. Polynomials beyond the 2nd order (Case Study)

      e. When is a very low R-squared GOOD? (Case Study)

3.   Addressing seasonality of data (within and between periods) via Exponential Smoothing (Case Study)

4.   Forecasting

      a. How to “look forward” (Case Study)

      b. Residuals…determining “what should be” (Case Study)

5.   Multi-variate regression and the information content of P-values (Case Study)

6.   Addressing materiality in proportional regression: going to the right place to audit (Case Study)

7.   Stepwise regression (demo)

8.   Discriminant analysis (demo)

9.   Flowcharts with decisions on how to attack advanced analytics

10.  Re-visiting Management Dashboard and Visual Basic

11.  QA session/Dialogue: “wins” and frustrations (and turning them into wins)

12.  Bring your own data to class…we’ll try it out

13.  Student presentations…more complex



It is STRONGLY RECOMMENDED that attendees in this course have either 1) attended an Advanced Analytics course or 2) taken at least one college course in regression analysis.

A working knowledge of Excel is preferred.


Dr. Dan Kneer
Dr. Dan Kneer believes in "auditing smarter: not harderTM". He has been blessed to work with several open-minded, forward-looking auditors. From his national award-winning PhD thesis to his recognition for a "Lifetime Contribution in the Innovative Usage of Technology in Auditing", Dan has exhibited a live-long commitment regarding audit efficiency and effectiveness.

He has taught these concepts and provided solutions to 1) Federal and State Agencies/Auditor Offices, 2) Internal Audit shops and 3) all of the Big- 4. His hands-on training and revolutionary audit strategies increase audit efficiency by over 33%, or more, while reducing cycle and travel time. A Fortune 500 Company now saves $300,000,000 per year, via his techniques, while a Federal Agency reported annual savings of $950,000,000 per year! Dan also performs chapter-level training/speeches.

Doc pioneered Continuous Control Monitoring (CCM) at the Application and Process level, (the "secret sauce") of CCM. A Fortune Top 10 CEO says that Dr. Dan "built the Holy Grail".

Dan has been requested to participate/comment on many auditing standards (AICPA, IIA, COSO, ISACA, CobiT, SOX, and the Yellow Book). He was the Director of Research for the ISACA.

The Dean of the Vanderbilt Law School says Dan's audit research "is the type of practical research that we need more of".

Dr. Dan has been voted "the # 1 trainer of auditors" and the # 1 speaker at multiple International Audit Conferences, ranking # 1 at two different IIA Internationals. He has won college-teaching awards in each of the last three decades.

All of Dan's training classes are 100% HANDS-ON: you will walk out with new audit tools, ready to hit the ground running. Dan helps auditors to reduce cycle time, find fraud, reduce travel, improve efficiency and strengthen findings.
Kimberly Kneer
Kimberly Kneer has passed the CPA exam and is now focusing on the CIA exam. She was formally educated in accounting and systems design.

Kim started her career in the health care field as a liaison between IT and hospital management. She was responsible for the financial modules during the mainframe computer software conversion. Kim also assisted the Big-4 external auditors in the annual audit effort.

Her specialty is laptop-based software tools that assist auditors, inspectors and examiners in the review of compliance, performance, operations and financial data. She is also interested in mathematics and the application of process control to auditing.

She has used, and taught, many software tools to assist business folks in "working smarter; not harder", such as 1) ACL, 2) Idea, 3) SQL and VBA, 4) regression analysis, 5) advanced Access, and 6) advanced Excel (excel as a database). Her unique perspective is that of anyone hungry for audit tools, as she constantly asks, "can't we find friendly software to empower the user and make the user better off?"

Additional Information

TAC Rule 523.142(g) requires the CPE Sponsor to monitor individual attendance and assign the correct number of CPE credits. Participants will be asked to document their time of arrival and departure in compliance with this Rule. Additionally, attendance will be monitored throughout the day and CPE certificates will reflect actual attendance of each participant.

If you are making travel plans to come to Austin, we recommend making "refundable" air and hotel reservations or waiting until 14 days before the class to actually book your reservations. Courses are occasionally canceled or rescheduled due to low enrollment. We determine whether a course has enough participants 16 days prior to the course date. If we cancel or reschedule, we will email the participant and his or her billing contact no later than 14 days before the original class date.

The course coordinator will contact you with parking information. Handicapped parking is free at the meters around the downtown area.

Vending machines with Coca-Cola products and various snack items are available. There is also a refrigerator and microwave in our coffee bar area. Feel free to bring in your own drinks and food if you prefer.

You might want to bring a light sweater or jacket, as room temperatures vary.

To see answers to our Frequently Asked Questions, visit

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