Transcript ACL Review: Why ACL?

Porter Broyles
The Desire for
CAATTS
And
Continuous
Assurance
Computer Aided Audit Tools
Vs
Computer Aided Audit
Tools and Techniques
Protiviti: 2012 Internal Audit Capabilities and Needs Survey
Competency
Sampling
Tools
Internal
Marketing
Continuous
Monitoring
Continuous
Audit
Statistical Analysis
Need to Improve
Data
Manipulation
Tools
Protiviti: 2012 Internal Audit Capabilities and Needs Survey
CAATS
 Tone
at the top
 Place high priority on leveraging technology
to boost performance.
 Hire people with the right skills
 Train, train, train.
Teammates 2011 Global Technology Survey
 The
more the top level administrators buy
into CAATTS/CA, the easier it is to
implement.
 Executive level support helps to break down
barriers and obstacles that can hinder
development.
In exercising due professional care, internal
auditors must consider the use of technologybased audit and other data analysis techniques.
(Standard 1220.A2)
Should consider use of CAATTS with every Audit.
(Example: My Quality Assurance Review.)
If it is not required to use CAATTS then there is
less likelihood that data analytics will be used
even if the department has acquired the
software.
2012 Auditnet Survey Report on Data Analysis Software and Auditors
Over the years, there has been discussion on
whether everybody in the department should be
CAATTs experts or just a few select people.
IIA has issued guidance on this:
“Internal auditors MUST have sufficient knowledge
of … technology-based audit techniques to perform
their assigned work. However, not all auditors are
expected to have the expertise of an internal
auditor whose primary responsibility is information
technology auditing.” International Professional
Practices Framework
Cost is the main reason reported by those who
have not purchased audit software (75%) with
the next highest barrier being staff training.
(2012 Auditnet Survey Report on Data Analysis
Software and Auditors)
Auditnet – 2012 State of Technology Use by Auditors
David Coderre – Not a programmer by training
 Porter Broyles – Not a programmer by training
 George Hrabak – Not a programmer by training
 Paul Picard – Not a programmer by training
 Jean Guy-Pitre – Not a programmer by training
 Steve (Khashar)– A programmer by training
 Ian Craigen – Not a programmer by training
 Darius (Jazio) – A programmer by training

2012 Auditnet Survey Report on Data Analysis Software and Auditors
 Founded
in 1987
 Vancouver, BC
 Over two-thirds of the Global 500
 89% of the Fortune 500
 98% of the Fortune 100
 All Big 4 accounting firms
 Hundreds of national, state and local
governments
 Over 14,700 organizations in more than 150
countries
 Founded
in 1988
 Toronto Ontario
 130 countries
 IDEA designed by Canadian Institute of
Chartered Accountants (CICA)
 280+ employees plus distributors
 Designed
by auditors for auditors.
 Built in commands/functions for auditors.
 Log file for capturing work.
 100% data review.
 Can load most major data sources.
 Read only, can’t change original data
sources.
 Reading
computer fillies
 Selecting data
 Manipulating data
 Sorting data
 Summarizing data
 Performing calculations
 Selecting samples
 Printing reports
 Very
similar tools
 Both designed for auditors




Ease of use
Programming language
Audit specific commands/tools
Logging of tests
 Both
have advantages/disadvantages with
each other
Is like arguing over which is better :
Apple or PC
Ford or Chevy
Creamy or Chunky Peanut Butter
Star Wars or Star Trek
You have experts on both sides, but the truth
might be somewhere in between.
1)
Houston is an IDEA hotspot
2)
VBA is base language
3)
Several significant upgrades over past few
years
1)
More people have ACL experience.
2)
More jobs are looking for ACL experience.
3)
The ACL User Community is extremely
strong and willing to help.
4)
More books have been written using ACL
than IDEA or other General Audit Tools.
5)
The TexasACL website.
 Focus




Workpapers
Acerno
Audit Exchange
Importer
 No


has been on ancillary products
major enhancements from 2003 to 2012
Most improvements have either failed or
Alienated the user core
Microsoft Excel 2013
 Advantages




New functions
Autocomplete of pattern recognition
Recommended tables/charts
2 billion record limit
 Disadvantages




Fat finger errors
Affects original data
No log
Issues about effeceincy
 Grant
Brodie
 Different direction for company
 Broke off in 2003


ACL to the auditors
Arbutus to IT
 Do
not compete expires on March 1, 2013
 Very small staff.
 ACL
and Arbutus are fully compatible as of
ACL version 7.3
 Arbutus
has continued to develop the core
product.
 Core
product does a lot of what people buy
AX for.

Enhanced abilities to read/load/export files.



Enhanced debugging capabilities.




Excel
Linking to data
Better colorization
Section walk through
Line by line
Enhance procedure capabilities.



Shared scripts
Lock and protect procedures
Callable subroutines

Intelligent file deletion.

Temporary file prefix.

Variable/Field arrays.

Many new functions/commands .
FORMAT()
 Numerous date/time functions
 Enhanced REPLACE(), INCLUDE(), EXCLUDE(), SPLIT()

 Shared
folders.
 Reusable
 Colorized
 “Smart
print-to-image definitions.
triggers
Search”
 Not
as well known.
 Total
staff is around 15 people, can they
handle sudden growth if ACL customers leave
for Arbutus?
 Client
base is smaller, so has the software
been as well tested?
 Needs



to release new upgrades.
Version 10 in April
Promises for upgrades every 6 months
Upgrades must be successful/non-buggy.
 Annual
Convention in April
 Major
threat from Arbutus. (Potential threat
from IDEA.)
 Likely
to lose market share
 Potential
 Should
 Might
 Big
market share.
grow significantly.
capture some IDEA users
question is Arbutus itself?
 Spectator
to the Civil War.
 Opportunities
as companies explore
alternatives to ACL?
 Potential
loss to Arbutus from newer clients
who moved to IDEA due to dissatisfaction
with ACL.
 Could
come out ahead or lose ground.
Porter Broyles
[email protected]
www.someclownconsulting.com
www.texasacl.com
281-948-6678