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CONTENT The logic Query (Audit) types Sample scenarios Demo - Case creation Demo - Audit Conclusion |
THE LOGIC
The logic of the Audit Workbench module in D365FO involves the following steps:
- Creates Policies: Establishes audit policies and rules to define criteria for identifying discrepancies or irregular transactions.
- Monitors Transactions: Continuously scans transactional data to detect deviations from the defined policies.
- Identifies Exceptions: Flags transactions that violate policies as exceptions for further review.
- Conducts Audits: Facilitates a detailed examination of flagged exceptions to analyze potential issues or risks.
- Tracks Resolutions: Enables tracking and documentation of resolutions for each flagged transaction, ensuring accountability and compliance.
- Provides Insights: Generates reports and insights to support decision-making and improve future processes.
This article demonstrates all of the above steps through realistic end-to-end business scenarios.
This feature enables the auditing of expense reports, vendor invoices, and purchase orders in various ways. The essential configuration required is the Audit Policy, which allows you to specify the document type to be audited and select the desired audit type.
QUERY (AUDIT) TYPES
When you set up an audit policy rule, the first thing you do is pick a rule type. This also decides the kind of audit the rule will use. The query looks at the source document the rule will evaluate and figures out details like which legal entity and date to use when selecting documents for auditing. The type of query also affects what fields show up by default when you're working in the query page or the Audit policy rule page.
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Query type
|
Purpose |
|
Conditional |
It
is used to evaluate records against a set of conditions and take action when
those conditions are met. For example, you can configure a rule to flag
expense reports if they exceed $1,000 and do not include an approval
signature. This type of rule ensures compliance by checking for specific
combinations of criteria in your data.
|
|
Aggregate |
It is used to flag transactions or records that exceed certain
thresholds or limits when grouped together. For example, you can use it to
audit total expenses submitted by an employee over a month, or total payments
to a vendor in a specific period, and flag cases where the amounts exceed a
predefined limit. This helps identify unusual or risky trends for further
review.
|
|
Sampling |
It
is used to pick a small, representative set of records from a larger dataset
to review for compliance, accuracy, or irregularities. For example, you can
configure a rule to randomly select 5% of all vendor invoices from a specific
period for audit, ensuring a fair and manageable review process without
checking every single transaction. |
|
Duplicate |
It is used to flag records that may have been entered multiple times
by mistake, such as duplicate vendor invoices, expense reports, or purchase
orders. For example, you can configure it to detect invoices with the same
vendor, invoice number, and amount, helping to prevent overpayments or fraud.
It’s a tool to ensure data accuracy and avoid redundancy. |
|
List search |
It
is used to create audit policies that focus on identifying specific values or
patterns within a list of data (e.g., transactions, vendor records, or
employee expenses). These rules are ideal for catching anomalies, policy
violations, or data points that require further investigation. |
|
Keyword search |
It is used to identify records that might need attention based on
certain words or terms. For example, you can use it to find expense reports,
vendor invoices, or other documents that include keywords like "gift"
or "bonus". |
SAMPLE SCENARIOS
The next step is to explore how these queries can be applied in real-world scenarios. By using these query types, you can create targeted rules to monitor and flag specific document types. Below are practical examples for each query type, demonstrating how they can be configured to identify anomalies, ensure compliance, and improve data accuracy in Dynamics 365 Finance and Operations.
List Search Policy Rule
- Scenario 1: Identify all purchase orders where the requested delivery date is in the past, ensuring timely communication with vendors.
- Scenario 2: Flag vendor invoices with payment terms longer than 90 days to ensure compliance with organizational policies.
- Scenario 3: Highlight expense reports submitted with amounts exceeding $5,000 for further managerial review.
Keyword Search Policy Rule
- Scenario 1: Search for the word "urgent" in vendor invoice descriptions, which may indicate rushed or unusual transactions.
- Scenario 2: Identify expense reports containing the keyword "gift," as these may require special approval or policy checks.
- Scenario 3: Flag purchase orders with descriptions containing "custom" to ensure they align with approved procurement guidelines.
Duplicate Policy Rule
- Scenario 1: Detect duplicate vendor invoices submitted with the same invoice number, amount, and vendor, avoiding overpayments.
- Scenario 2: Identify duplicate purchase orders with the same vendor, total amount, and delivery date, which could indicate data entry errors.
- Scenario 3: Flag duplicate expense reports submitted by the same employee for the same trip or purpose to prevent duplicate reimbursements.
Sampling Policy Rule
- Scenario 1: Randomly select 5% of purchase orders from the last month for auditing to ensure compliance with procurement policies.
- Scenario 2: Sample 10% of vendor invoices over $50,000 for auditing to confirm they have proper supporting documentation.
- Scenario 3: Select a random set of expense reports from a specific department for a compliance check.
Aggregate Policy Rule
- Scenario 1: Flag vendor invoices where the total payments to a single vendor in a month exceed $1,000,000, signaling a need for further review.
- Scenario 2: Identify purchase orders where the total value of orders placed with a single vendor in a quarter exceeds $2,000,000, ensuring compliance with procurement limits.
- Scenario 3: Monitor expense reports where the total amount submitted by an employee in a month exceeds $10,000, ensuring adherence to travel and expense policies.
Conditional Policy Rule
- Scenario 1: Flag expense reports where the total amount exceeds $5,000 and no manager approval has been recorded.
- Scenario 2: Identify vendor invoices where the due date is overdue and no payment has been scheduled yet, to ensure timely follow-up.
- Scenario 3: Flag purchase orders where the total value exceeds $100,000 and the order has not been approved by a senior manager.
DEMO - CASE CREATION
Let's delve into 'Duplicate Policy Rule's 'Scenario 1'.
Navigate to Audit workbench >> Setup >> Policy rule type.
The following line indicates that vendor invoices will be subjected to a duplicate invoice check. The batch job's date range will be based on the invoice date.
Let's now configure the system to display invoices with the same amount that belong to the same vendor within a specific time range.
Navigate to Audit workbench >> Setup >> Audit policies.
Create an audit policy named Duplicate invoices.
Create a policy rule at the bottom of the screen and click on it.
Switch to Group by tab.
We want to see all invoices belong to same vendor with same amount within a specific time frame.
Configure the screen as shown below:
Click OK.
Click Test.
