Transcript State of Ohio

Current Trends in Audit
Management Technology –
“Changing Times for Audit”
Randy Cowell - Regional Director
Introductions
Randy Cowell
Regional Director, CCH TeamMate
 20 Years of Internal Audit, Methodology and Audit Management
Software Experience
 Assisted over 200 organizations in the selection and implementation
of audit management software
 Led the IIA in their implementation of TeamMate for Quality
Assessment program
Increasing Pressures
In this tough economic
climate, internal audit shops
around the world are under
pressure to be as efficient as
possible.
How to do more with less is a
question on everyone’s mind.
Our Objective
Answer the question:
How to do more with less?
Audit Memory Lane
• Does any one remember when we used
“Green bar” paper to document our work.
• How about when there was no email.
• When there were no computers.
• No Word or Excel.
• When there were no audit tools.
Have the technology advances
changed what we do as auditors?
What do you think?
It hasn’t changed “what we do” but “how
we do it.”
How have things changed?
Documents &
Spreadsheets
Slide presentations
Automated tools
Telecommuting
Distributed
Workforce
Network/Servers
Email
Web meetings
Data files
Videos
What type of tools do you need?
Data
Extraction
Audit
Management
Fraud
Detection
Data Analysis
Risk
Assessment/
Compliance
Data Extraction tools
Data Extract tools provide the ability to obtain and find
meaning in data by cutting and dicing or drilling down to
the required level of detail.
Benefits include:
 Improved productivity and efficiency.
 Ability to spot fraud, expenses abuse, and a failure to record staff taking
annual leave, for example.
Data
Extract
Spreadsheet
Data Extraction Software
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ACL
SAP
IDEA
SQL
Excel
Data Analysis tools
Data analysis tools take data that has been extracted and
helps auditors find meaning in a mass of data or spot
trends.
Benefits include:
 increase the efficiency of audits.
 Instead of working with a limited sample of data — such as a cross section
of invoices — these tools can analyze all of it, giving better audit coverage.
Data
Analyze
Spreadsheet
Data Analysis Software
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ACL
Excel
Access
IDEA
Fraud Detection/Investigation tools
Fraud Detection/Investigation tools helps audit shops
spot anomalies, fraud indicators, and other red flags
that they wouldn’t have seen otherwise.
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ACL
Excel
IDEA
Crystal
Reports
• SAS
Risk Assessment tools
Risk assessment tools helps audit departments assess risks
for their annual audit plan
Benefits include:
 Helps auditors track risks consistently and provide a standard format for all
risk assessments and risk calculations.
 Facilitate comparison of risks across the organization.
 Saves time when performing new risk assessments.
 Prepare the annual audit plan more quickly.
 Easily update risk criteria as an audit assignment progresses.
 Can determine at a glance which areas of the business are “high risk.”
Risk Assessment software
• Excel
• TeamRisk
• Internally
developed
Other Tools
Lesser used tools are used by audit departments,
such as:
 Compliance tools - allow organizations to benchmark
departments, contractors, services, etc. against defined
standards.
 Control self-assessment tools.
 GRC tools
 Sox tools
 Continuous auditing tools
Automated Workpaper tools
Automated workpaper tools helps audit departments :
 Standardize their audit work, be more productive, and provide
consistent results & reporting styles.
 They also facilitate review and sharing of audit files with peers,
which leads to better quality work overall.
 Provide centralized storage of workpapers making it easier for
auditors to access information and improves the organization of the
audit shop as a whole.
 Also helps ensure workpapers comply with The IIA’s International
Standards for the Professional Practice of Internal Auditing
(Standards).
 Facilitate audit tracking and repeat or follow-up assignments, which
helps cut audit planning time and staff workload.
Automated Workpaper tools
Various benefits include:
 Automated tools allow for easy tracking of audit
issues and the related responses.
 Able to compile and issue draft/final reports much
sooner after finishing audit fieldwork.
 Colleagues working on the same assignment can
review workpapers from remote locations.
 Eliminates all hard copies of workpapers, which
saves office space and reduces waste.
Automated Workpaper Software
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TeamMate
AutoAudit
Word
Excel
The Bottom Line “Rewards” of Automating…
•Increased productivity
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Planning
Documentation
Review
Automatic Report
Generation
– Data mine (committee
reporting and trend
analysis)
• Increased efficiency
– No More “Lost” Manual
Workpapers
– No More “Lost” Data
Scattered in Multiple
Computer Files
– Manager’s Expectations are
Clearly Defined
What’s driving the need for audit tools?
 Elevated profile of the audit dept - important part of
governance infrastructure.
 More engaged Audit Committees - looking for more
information & quicker.
 Management requires different levels of information.
 Need to be “risk”-focused.
 Constraints on budget and/or resources.
 More requirements on managing & reporting on costs.
 More emphasis on open issue tracking & recommendation
follow-up.
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Obstacles and Challenges
 You are implementing more than
just technology – you are
implementing your methodology.
 Therefore, you need to think about
more than just technology.
 Think about what your needs
should be, rather than what they
currently are.
 Use the implementation of your
tool as a change agent.
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Things to expect from a system
 Knowledge Management or content should be available.
 Should mirror “the way you work” – your business
process.
 Needs to be a complete solution.
 Functionality should be integrated.
 Should be easy to use.
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Further Considerations
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Flexibility / configurability vs. “customization”
What is the level of vendor commitment and support
Is the software a complete solution
What type of connectivity issues do you have & what are the
infrastructure requirements
Can the software easily adapt to your business
Enabler, not replacement of talent
Is there Management Support?
Do you have budget approval?
Is there Audit Committee Support?
Remember – are you willing to “adjust/change”
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What are your needs:
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Work Papers
Risk Assessment/Audit Planning
Project tracking & budgets
Timekeeping
Automatic Reports
Open issue tracking & follow-up
Monthly management reports
Trend analysis
Steps to Automating
1. Identify current department information
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Audit workpapers
Program & spreadsheets
What are you monthly management reports
2. Determine automation objective/needs
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Is your current technology feasible
What is management expectations
Do you need to migrate historical data
3. Establish implementation timeframes
Steps to Automating
4. Evaluate Software Needs
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Do you have any compatibility issues with current software
What is needed (as mentioned earlier)
5. Establish Automation Budget
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Budget for software
Budget for hardware
Get budget approval
TeamMate Product Overview
A COSO-compatible risk
assessment tool for
generating risk based
audit plans
A state of the art tool
for scheduling your
staff and audits
A web based
issues tracking
and reporting
system
Effectively manage
budget vs. actual
time & expenses
TeamStore
A Comprehensive Electronic Work Paper system
TeamMate TeamStore
The TeamStore is an electronic
repository that contains audit
programs, workpaper
templates, risk and controls as
well as example exception
write-ups.
The TeamMate TeamStore
includes:
• Over 10,000 searchable audit
steps from AuditNet
(including premium content)
• The complete COBIT audit
approach (over 300 IT audit
steps)
• The IIA Quality Assessment
framework
TeamMate – The Industry Standard
Vendor Viability is Critical
In the past few years numerous
Audit Management products have
been discontinued and many
vendors have ceased support or
ceased development of upgrades.
Some products are being reinvented as SaaS solutions and
forcing the licensee to abandon
their current version and re-license
the “new” version all over again.
Many products are GRC add-ons
designed to pull clients in to a large
and expensive GRC license.
TeamMate History
GE Capital Finance
Washington SAO
South African AG
NAIC License
TeamMate R8
TeamMate R9
TeamTEC Added to
the Product
Complete Database
upgrade
TeamMate
2000
2004
2006
TeamSchedule
Added to the
Product
Number of end users
2009
TeamMate
Acquired by CCH
TeamMate R7
TeamCentral Added
to the Product
2008
Entire Team Goes to
CCH
70,000
2002
60,000
2000
50,000
TeamMate 2.0
TeamMate R6
40,000
1997
AuditNet Partnership
TeamRisk Added to
the Product
25,000
1995
5,000
1993
Partnership with IIA
Wal-Mart License
TeamMate 97
First windows based
EWP system in the
world
Northrop Grumman
First User Forum
First License US Steel
TeamMate 1.0
10th User Forum
Microsoft
Texas SAO
The Industry Standard
Selected TeamMate Users Include:
TeamMate – Installed Base
Quick Facts – as of October 1, 2009
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1,800 organizations
72,000 end users
Used by the IIA on QARs
Adding 3 new organizations per week
Licensed in 98 Countries
Over 100 Fortune 500 Users
4 of the 5 largest companies in the world
Users Include:
AICPA
American Red Cross
Army
FDIC
ING North America Insurance
International Mission Board
Institute of Internal Auditors (IIA)
Microsoft
NAIC
Rotary International
U.S. Department of Defense
Scalability
TeamMate is used by
departments ranging in
size from 1 to 2,500.
We are the large
department (over 50
auditors) clear product
of choice
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Over 35 audit
departments with over
250 auditors
4 departments with over
1,000 auditors
CCH TeamMate – Here to stay
 The industry standard – used by twice as
many auditors as all other systems combined
 CCH is part of Wolters Kluwer – a $5 billion
company / 20,000 employees
 CCH is heavily investing in TeamMate
 250% employee growth in past 2 years
 30% revenue growth over past 2 years
 TeamMate R9 – the most comprehensive
upgrade to date – was released in August
2009
 Development of R10 is well underway
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Continuing to ramp up development resources
Continuing to build strategic alliances and
partnerships
Actionable content is a key area of focus
The TeamMate Community of Users
Annual TeamMate User Forum

Largest Audit Software Conference in the World
»
»
»
2 Day Conference
Four Locations (United States, Europe, Asia, South Africa)
700 Attendees in the United States
Formal Focus Groups, Beta Test Groups and Contextual Design Groups
TeamMate User Forum - 2009
• Participants from 20 Countries
• Exhibitors (IIA, ACL, Pentax, PwC)
• Over 21 Different Courses
• Breakout Sessions by Industry
• Vince Poscente – Key Note
Speaker
TeamMate Community
A place for TeamMate users to obtain
TeamMate information and share
best practices
• News and Events
• Content
• Downloads (including
upgrades and hot fixes)
• Discussion
• Support
New Content Indicators
Activity Updates
Favorites
E-mail Alerts
Pricing is straight forward. There are no
hidden costs or fees.
The TeamMate license includes all 5
applications as well as TeamImage
(scanning software). The TeamMate
license also includes over 10,000 audit
steps
TeamMate does not require custom
source code modification – the interface
is highly configurable by the end user
Under the special “Competitive Upgrade”
program* from October 1, 2009 through
December 31, 2009 the TeamMate
License includes the first two years of
support and maintenance / upgrades
* To qualify for the competitive upgrade program, companies must
upgrade from Auto Audit, Audit Leverage, AS/2, Auditor Assistant or
Pentana to TeamMate from 9/15/09 through 12/31/09
Licensing and Pricing
We believe TeamMate’s favorable license policy is unique. An organization need only license TeamMate for
its auditors and can allow broader participation and access without additional licenses as indicated below.
External Review
Risk Assessment
Process Owners, Risk Assessors
TeamRisk includes a web based self assessment model
where process / control owners can log into TeamRisk
and complete a risk assessment
Peer Review, QAR, Regulatory Review,
CPA Firm Review
If your audit files are subject to an outside review, you
can provide TeamMate at no charge to the outside
reviewers in order to grant access to the workpapers.
No Charge for
these users
Issue / Exception Follow-up
Issue Owner / Auditee
Issues / audit findings are tracked in TeamCentral.
Audit departments can grant secured access to the
issue owner allowing direct updating by the issue
owner
Management Review
Management / Stakeholders
Audit departments can grant management
and other stakeholders access to TeamCentral
to view reports on a wide variety of KPIs
Training
CCH TeamMate has a world-class implementation
and training department.
In addition to comprehensive on-site
implementation and training services, the following
options are also available:
• Web based installation
• Web based training
• Recorded sessions (web based viewing)
• Extensive on-line training materials
• Train the trainers
• TeamMate certification at the CCH Training center
TeamMate is highly intuitive – complete EWP training
takes just one day.
Full Administrator training classes are available
TeamMate Support
CCH TeamMate delivers world class
support through four regional
support centers:
 United States (Tampa)
 Europe (London)
 South Africa (Johannesburg)
 AsiaPac (Sydney)
Support is available via:
 toll-free phone call
 on-site assistance
 the web (e-mail and user
community)
 direct online troubleshooting