Transcript PowerPoint-Präsentation - Rutgers Accounting Web

Computer Aided Audit Technology
for Continuous Audit
A. Nutz
e
University of Augsburg – Germany
Continuous Audit Analysis and Reporting System
4th world continuous auditing and reporting symposium
A. Nutz, E / University of Augsburg University of Salford, April 18th 2002
Content
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•
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Trends / Reasons for the project
CAARS/AIS – the concept
Pilots within E
Next steps
Continuous Audit Analysis and Reporting System
4th world continuous auditing and reporting symposium
A. Nutz, E / University of Augsburg University of Salford, April 18th 2002
Current Trends / Audit Language
• Ongoing discussion on corporate governance
• XBRL as a catalyst for standard (audit) routines
• Implications of Internet based reporting / risks by
inadequate use of web trust seals
• Legal and contractual obligations intensify the
consideration of:
- Risk management systems
- Monitoring and alert systems
• The move from financial reporting to business
reporting triggers the development from financial
audit to business audit
Continuous Audit Analysis and Reporting System
4th world continuous auditing and reporting symposium
A. Nutz, E / University of Augsburg University of Salford, April 18th 2002
Consequences
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Escalating scope
of audits
require
an information system with
adequate data basis („width“
and „depth“)
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Increasing audit
complexity
requires
innovative analysis techniques
such as Data Mining, OLAPtechnologies and monitoring
And as general precondition:
The audit software has to be used on reliable, quality controlled data.
Continuous Audit Analysis and Reporting System
4th world continuous auditing and reporting symposium
A. Nutz, E / University of Augsburg University of Salford, April 18th 2002
Insufficiencies within the use of flat file based CAATS
1
Feedback on Audit Results
Auditor
Client EDP-Employee
EY/IT-Employee
Performs audit and
Assessment
Performs
Download
of
Client OLTP-System
2
Data Capture
at due date
Data Analysis
3
t = single event
uses
4
5
Financial Accounting
Data as flat file
SAP
Fin.
Acc.
Data
Toolbox
of
CAATS
Results
Aging
®
R/3
6
Continuous Audit Analysis and Reporting System
4th world continuous auditing and reporting symposium
A. Nutz, E / University of Augsburg University of Salford, April 18th 2002
Improvements by data warehouse / mart based CAATS
(Development of Continuous Audit Analysis & Reporting Software CAARS / AIS
Integration into EY-Methodology
1
Host
Host
7
2
Excel,
Excel,
ASCII
ASCII,
etc.etc.
5
CAARS
Engagement
Mart
3
RDBMS
RDBMS
4
SAP
Flat
file
RDBMS
MDDBMS
®
R/3
External
Sources
(Gartner etc.)
Continuous Audit Analysis and Reporting System
4th world continuous auditing and reporting symposium
A. Nutz, E / University of Augsburg University of Salford, April 18th 2002
6
Pilot Engagements / Findings & Results
• Piloting took place in six European engagements (F, GER,
CH, UK)
• Different size of engagements
• Different evaluation focus (audit efficiency respectively
cooperation with third party users)
• Different scope and location of data mart
• Some of the pilot findings are:
• Within half of the pilots third party users joined the
project
• Within these pilots no data capture had to be performed
by the audit team as it was completely automated
• By providing modules of different complexity (query,
OLAP, cockpits) more auditors with less technical skills
are using analytics.
• Engagement teams were regarded as “the audit teams
that are doing the better audit”
Continuous Audit Analysis and Reporting System
4th world continuous auditing and reporting symposium
A. Nutz, E / University of Augsburg University of Salford, April 18th 2002
Pilot Engagements / Findings & Results
• Pilot findings (cont.):
• Time savings were achieved by improved integration of
modules.
• With standard audit routines time savings for analytic
procedures are estimated to approx. 15 to 30 % of time
spent for the current ad hoc approach.
• With standard audit routines integrated, AIS will be
‘THE SOLUTION’ and a competitive advantage.
• Especially the use of the OLAP-module improved the
image as auditor.
Continuous Audit Analysis and Reporting System
4th world continuous auditing and reporting symposium
A. Nutz, E / University of Augsburg University of Salford, April 18th 2002
CAARS – Next Steps
CAARS
Improved ad hoc capabilities
Data Warehouse Approach
Improvement of data capture
capabilities (mapping facility)
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Integration of further modules:
• Regression analysis
• Trend analysis
• Fuzzy logic component
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• STANDARD ROUTINES
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Enhancement of scalability
Enhancements on fully
automated data capture
Further development on cockpit
and monitoring versions
PROCESS MEASUREMENT (KPI)
Audit methodology
enhancements
Continuous Audit Analysis and Reporting System
4th world continuous auditing and reporting symposium
A. Nutz, E / University of Augsburg University of Salford, April 18th 2002
Audit Standards
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Development of audit standards and business applications
Continuous Audit Analysis and Reporting System
4th world continuous auditing and reporting symposium
A. Nutz, E / University of Augsburg University of Salford, April 18th 2002
Questions?
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If you have any questions please do not hesitate to contact me:
• [email protected]
• 0049 / 711 988 5676
Continuous Audit Analysis and Reporting System
4th world continuous auditing and reporting symposium
A. Nutz, E / University of Augsburg University of Salford, April 18th 2002