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Corvelle Drives Concepts to Completion
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Corvelle Drives Concepts to CompletionCorvelle Drives Concepts to Completion
Corvelle Drives Concepts to Completion
Monitor Compliance Risks Through Data Analytics
IIA Calgary Luncheon15 September 2010
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Corvelle Drives Concepts to Completion
Yogi SchulzBiography
Partner of Corvelle Consulting Information technology related management
consulting Microsoft Canada columnist & CBC Radio host PPDM Association board member Industry presenter:– Project World - 4 years– CIPS Informatics - 7 years– PMI - Information Systems SIG - 2 years– Convergence - 4 years– PPDM Association - several years
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Corvelle Drives Concepts to Completion
PresentationOutline
Business Context Data Analytics System Development description Benefits Conclusions Recommendations Discussion
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Corvelle Drives Concepts to Completion
Business Context
Regulator publishes requirements Oil & gas industry expected to comply Some requirements relate to
measurement and reporting
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Corvelle Drives Concepts to Completion
Business Problem
Current situation:– Challenge maintaining compliance audit coverage– Suspicion of poor compliance
Goals to:– raise level of assurance over state of compliance– raise level of compliance
Approach:– Apply CSOX audit concepts to compliance audit– Improve monitoring through data analytics
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Corvelle Drives Concepts to Completion
Oil & Gas IndustryHigh-Level Data Flow
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AlbertaEnergy
FieldProductionOperations
Alberta’soil & gas
regulator
FieldData
Capture
ProductionAccounting
RevenueAccounting
FinancialAccounting
PetroleumRegistryAlberta
Corvelle Drives Concepts to Completion
Compliance AuditPhilosophy
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Trust Operator Declaration
Verify Compliance Assessment Process
“Trust, but verify”- Ronald Reagan
Corvelle Drives Concepts to Completion
Continuous auditing
A method used by auditors to perform audit-related activities on a continuous basis
Changes the audit paradigm from periodic reviews of a sample of transactions to ongoing audit procedures that test 100 % of transactions resulting in timely and comprehensive insights into risk and control issues
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Corvelle Drives Concepts to Completion
Data Analytics SystemOverview
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DataExtract
ComplianceAnalytics
NoncomplianceIndicators
InputDatastores
Corvelle Drives Concepts to Completion
Data Analytics SystemData Extract
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FieldInspection
System
DataExtract
ExtractA - n
Alberta’soil & gas
regulator
Corvelle Drives Concepts to Completion
Data Analytics SystemData Analytics
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ComplianceAnalytics
Extract A
NoncomplianceIndicators
Extract B
ComplianceAnalytics
Corvelle Drives Concepts to Completion
Data AnalyticsExamples
High metering difference Production rate trending up Puzzling trends in gas flare, fuel, vent, meter
difference Gas production greater than oil production
for an oil well High or low fuel consumption
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Corvelle Drives Concepts to Completion
Data Analytics SystemReporting
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Noncompliance Indicators
Reports
OperatorReports
ProductionAudit Team
Reports
Corvelle Drives Concepts to Completion
Data Analytics SystemArchitecture
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Transform ComplianceAnalytics
DataExtract
Reports
Master
Corvelle Drives Concepts to Completion
Data Analytics System Development
Building the system - a part-time effort ACL dramatically reduces the amount of code Significant architecture, design and testing
effort
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Corvelle Drives Concepts to Completion
Benefits of ACL forData Analytics development
Cost-effective and rapid development Adaptable to change as source datastores
change Adaptable to change ACL Compliance
Analytics Routines Encapsulates expert understanding of data
relationships in complex datastores Simple validation of candidate compliance
assessment indicators
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Corvelle Drives Concepts to Completion
Benefits of ACL forData Analytics system operation
Formal, fully auditable system Fully automated operation Scalable solution
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Corvelle Drives Concepts to Completion
Business benefits of this Data Analytics activity
Assurance over the state of compliance Feedback to oil & gas operators Improved data quality for all stakeholders Comprehensive auditing Greatly increased auditor productivity Independent of skilled data analysts
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Corvelle Drives Concepts to Completion
Conclusions
Data Analytics addressed our business challenge
ACL enabled development and operation of our Data Analytics System
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Corvelle Drives Concepts to Completion
Recommendations
Investigate opportunities to employ Data Analytics within your organization
Consider ACL as the technology to implement Data Analytics
Consider ACL for batch Data Analytics applications
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Corvelle Drives Concepts to Completion
Next Steps
Identify datastores to examine Experiment to identify potential data
anomalies Design, build and test a Data Analytics system Collect dollars revealed
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Corvelle Drives Concepts to Completion
Questions &Discussion
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Can you help us
improve our compliance?Please
fill outevaluation
form
Corvelle Drives Concepts to Completion
Monitor Compliance RisksThrough Data Analytics
Corvelle Consulting700, 205 - 5 Ave. S. W.Calgary, Alberta T2P 2V7Phone: (403) 249-5255E-mail:
[email protected]: www.corvelle.com
Yogi SchulzPartner of Corvelle ConsultingInformation technology related
management consultingMicrosoft Canada columnist & CBC
Radio hostIndustry presenterPPDM Association board member
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Corvelle Drives Concepts to Completion
Bibliography
Continuous Auditing
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Corvelle Drives Concepts to Completion
Noncompliance Indicator FileRecord Layout
Noncompliance Indicator id Production Year/Month Operator BA id Facility id Noncompliance supporting data
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