How Technology Continues to Revolutionize Auditing The Latest Tools and Their Impact on the Profession presentation for the 2011 TeamMate User Forum demonstrates how technology has changed internal audit.

1. How Technology Continues to
Revolutionize Auditing
The Latest Tools and Their Impact on the
Profession

2. Agenda
• Introduction
• Historical Timeline Internet and Auditors
• Technology’s Impact on Audit
• Innovation in Audit Research
• Evolution of Professional Networking
• Latest Technology Tools for Auditors
• Trends and the Future of Audit Technology

3. Then and Now

4. Auditors and Technology
• Early Adopters
– Innovators (into the new
from Latin
– Interested in new
methods & techniques
– Risk takers
– Forward thinking
– Gen X & Y
• Laggards
– Wait and see
– Cautious
– Hangs back
– Last group to try or
adopt a new product
– Dislike change

5. Evolution of Web for Audit

6. Computers, Auditors and CAATTs
• The Evolution of CAATTs 80’s
– Around
– Through
– With
– EDP/IT Auditors
– Mainframe
• Audit Software 90’s
– Data extraction and analysis
– IT and non IT Auditors
– Windows
• The Millenium
– Software for all phases (planning, fieldwork, GRC)
– Cloud computing

7. Impact of Technology
• Computers and networks provide most of the
information needed for auditing
• Auditors must use the computer as an
auditing tool
• Auditors must also use the computer for audit
administration

8. Impact of New Technology on the Profession
• Professional Standards
– 16 Global Technology Audit Guides have been released since January 2009

9. New Technologies and their Impact
• Mobile computing
• The Cloud or Internet based services
– SaaS (application based)
– PaaS (end to end SDLC)
– IaaS (servers, storage, network)

10. Social Media
• Social Media Defined
• The good the bad
and the ugly
• What is the primary
risk?

11. Technology as an Enabler
There is a wide array of specialized tools to
support and enhance the entire spectrum of
internal audit processes … for the most part
(auditors) are not taking advantage of them
PwC 2010 Study on the State of the internal audit profession

12. Audit Software

13. Audit Software Categories
1. Data Analysis
2. Work Collaboration and Management
3. Risk Management
4. Continuous Controls Monitoring
5. Employee and Control Assessment
6. Research and Benchmarking

14. Data Analysis for Auditors
Although internal auditors have been doing data analysis for more than 25 years, it
has only recently started to become standard practice.
By our nature, most accountants and auditors are inclined to stick with what has
worked in the past, rather than reach outside our comfort zone for an alternative
that could help us accomplish more.
Do you reach outside your comfort zone?

15. Obstacles to Implementation
• Lack of an audit methodology
• Skill set gap
• Department size
• Cost implication
• Complexity of the software
• Resistance in training auditors
• Failure of software to meet audit departments needs
• Failure to plan for use

16. Heard on the Street
• AICPA Survey on Top Technologies for 2011 #1
Touch – screen technology
• Faster LANs
• Voice Recognition
• Fiber Optics
• Private company GAAP IT Implementation

17. New Tools for Auditors

18. New Tools
• Sept, 2008….
– Any device, Any time, Any
where was born
– Users not interested in
security, they want to
trust, not to be trusted
– Any unprotected device
connected to both the
Internet & and company
LAN poses a security risk

19. Other Technology Tools for Auditors
• Open Source Audit Software
• Continuous Controls Monitoring
• Regulatory Compliance
• Business Intelligence Software

20. Audit Apps for iPhones/iPads

21. Imagine the Possibilities
• Access your computer from remote locations
• Collaborate using tools from the road
• Access audit programs, work papers and more
from your mobile device
• Join Webinars and Webcasts for training
• Conduct or participate in virtual meetings with
staff, clients etc.

22. Trends and their Impact
• Mobile devices and wireless computing
• Smart devices and malware
• Cloud sourcing and computing – security, governance
and compliance
• Social media platform for communications
• Continuous risk and control assessment
• Reporting to the Board using SOTA technology

23. Skill Set for Future Auditors
• Multi‐disciplinary less accountants more
business oriented
• Critical thinking skills
• Strong communication skills

24. Future Predictions
• Standards will mandate use of technology tools for
audit
• New generation of auditors must have the KSA to
utilize technology
• If auditors and audit departments do not adapt to
new technology they risk outsourcing
• Social networking will evolve to professional
networking
• Tools will become more intuitive
• Knowledge hubs for audit tool, techniques and
resources will consolidate and merge

25. Audit Programs in the Queue AuditNet®
• Auditor’s Guide to Cloud Computing ‐ Security Considerations.xls
• Cloud Matrix_Benefits & Risks.xls
• AuditNet® Guide to Social Networking
• AuditNet® Guide to Wireless Security
• Business Continuity Planning – A Diagnostic Tool
• Forensic Document Examination
• Guidelines for Validation Testing
– AuditNet® is working to provide tools and resources to keep pace with new technology!

26. Conclusion
• I hope that I have provided
you with some useful
information that will stimulate
your thought processes!
• Any questions?

27. Contact Information
Jim Kaplan CIA, CFE editor@auditnet.org
http://www.auditnet.org

28. You Never Know What You Can Find on the ‘Net