ACL Solutions for Continuous Auditing and Moni

• ACL has 11,000+ user organizations globally • 33-40% of organizations consider they perform some form of Continuous Auditing • Chief Audit Executive surveys indicate Continuous Auditin

Auditing and Monitoring

John Verver CA, CISA, CMC

Vice President, Professional Services & Product Strategy

ACL Services Ltd

Continuous Auditing and Monitoring:

Where are we? Where are we going?

• ACL has 11,000+ user organizations globally

• 33-40% of organizations consider they perform some form of Continuous Auditing

• Chief Audit Executive surveys indicate Continuous Auditing and Monitoring usage will more than double by 2012

Continuous Auditing – ACL’s Experience

• Wide variation in CA approach and techniques

• CA part of a continuum of analytic usage

• Flexibility is key

ad hoc repetitive

24

• 7 •

365

continuous

Continuum of Audit Analytics

• One-off analysis and

testing

• Automated analyses and tests

• Managed and deployed from a central

environment

• Continual execution of automated audit and monitoring tests to identify errors, fraud and anomalies on a timely basis

Continuous Auditing: Issues to Address

• Data access and management

• Quality and control

• Sustainability and productivity

• People and process

ad hoc repetitive

24

• 7 •

365

continuous

A MANAGED ANALYTICS PLATFORM for AUDIT

Secure controlled access to data Configuration, automation and scheduling of tests Management of tests, documentation, findings, logs, workflow One common platform

Enabling the Continuum of Audit Analytics

Data Access

Reporting &

Presentation

Analytic Library

Query & Analysis

Management

& Automation

Management & Automation

• Audit repository

• User access & rights, data security

• Centralized tests and processing

• Continuous auditing management

• Configuration & management

Query & Analysis

• In-depth analysis

• Audit-specific commands & scripting

• Advanced analytics and predictive modeling

• Centralized logging

Data Access

• Access, extract, transform, load

• Specialized format connectors

• Audit data repository

Reporting & Presentation

• Templates, charting

• Dashboard integration

• Report deployment and maintenance

Analytic Library

• Packaged analytics, key business processes

Audit Analytics Repository

Data

• Data sets for each audit

area

• Data dictionaries

• Data management & refresh

Findings & Results

• Results management

• Specific findings

• Logs & other documentation

Analytics

• Test library

• Test documentation

• “Best Practices”

documentation

Management & Automation

• Scheduling

• Administration

• User access &

rights

• Search

• Security

Populating and Refreshing the Audit Data Repository

• INFORMATICA for ACL AuditExchange

o Industry leading technology for ETL (Extract Transform Load)

 PowerCenter:

 Flat files, delimited text, XML, Access, Oracle, Sybase, Teradata, ODBC, Informix, SQL Server, dBase

 B2B Complex Data Exchange:

 PDF, XML, XBRL, Excel

 PowerExchange

 Specialized data formats – HIPPAA etc

• ACL Data Access, including Direct Link for SAP

ACL: Continuous Auditing and Continuous Monitoring

• ACL AuditExchange

o Enables Best Practices in Audit Analytics

o Provides a secure, controlled, well-managed and sustainable environment for the continuum of Audit Analytics – Ad Hoc through Continuous Auditing

o Provides benefits of Audit Analytics to the entire audit team, according to roles

o A reliable environment for Continuous Auditing

• ACL Continuous Controls Monitoring

o Provides management and audit with insight into control effectiveness

o Monitors all transactions throughout business process cycles

o Tests against suites of control rules

o Identifies and quantifies exceptions on a timely basis

o Supports exception resolution and control remediation

o Configuration and management of the monitoring process

ACL Continuous Controls Monitoring Technology

Framework

ACL CCM Product Suite

• Continuous testing of transactions in core business process areas against sets of internal control rules

Purchase to Pay Procurement Card Travel & Entertainment Payroll

Order To Cash General Ledger

ACL CCM Product Suite

• Browser-based interface:

o Manage Continuous Monitoring process

o Security and Administration

o Manage test parameters

o View, report and manage exceptions

ACL CCM Product Suite – Large Enterprise Version

• Advanced capabilities for complex large scale enterprise monitoring

• For 10+ control entities:

o Enhanced multi-entity configuration

o Enhanced multi-entity parameter management

o Enhanced workflow and remediation

• ACL audit analytics used for many years in Siemens entity internal audit organizations

• Siemens Power Generation one of first organizations to implement ACL CCM Purchase to Pay 2004

• 2008 implementation of ACL Continuous Monitoring – Large Enterprise Version for Purchase to Pay systems across entire Siemens enterprise

• Believed to be largest purchase-payment transaction monitoring project in the world

ACL Enterprise Continuous Monitoring at

Enterprise Controls Monitoring at Siemens

Scale

• All corporate entities (currently 900+)

• All Purchase to Pay transactions

• Daily with 90 days running history

• 27 control tests

• 275 different data sources & applications

• Average 5GB of source data analyzed per entity

• Primary integration environment: analysis of 200GB data for

~400 entities

Enterprise Controls Monitoring at Siemens

Exceptions: workflow process

• Process managed by entity business owners

o review all exceptions

o assign appropriate category

• Unresolved exceptions automatically escalated through multiple CFO levels

Contact: john_verver@acl.com