Andrea Trunzo andrea.trunzo@mantala.it 13/10/2009

Core Value Proposition – Enhanced Business Assurance Confidence Completeness Quality More Insight Improved Productivity

Data analysis made easier and accessible to the entire audit team Centralized management of all audit content Continuous auditing – data access, analysis, exception management Enhanced Business Assurance

Data analysis made easier and accessible to the entire audit team

Centralized management of all audit content

Continuous auditing – data access, analysis, exception management

Centralized Engagement & Content Management, Automation & Analytic Processing Key Benefits: Conduct more effective and insightful audits using data analysis Allow your entire audit team to leverage the power of data analytics Get more done with same staff ACL Specialist Auditor Audit Leadership Auditor No ACL Desktop Use ACL Desktop User Centralized Audit Management Engagement & Content Management Automation Analytic Processing Manage All Types of Audit Content Project s A nalytics Data Exce l Word Crystal Reports PDF Audio PowerPoint Results

Conduct more effective and insightful audits using data analysis

Allow your entire audit team to leverage the power of data analytics

Get more done with same staff

Centralized Audit Management

Engagement & Content Management

Automation

Analytic Processing

Increase the accuracy of your audit findings Expand the quality and scope of audit activities Maintain the integrity and security of data Key Benefits: ACL Specialist ACL Desktop User Centralized Audit Management Engagement & Content Management Automation Analytic Processing Manage All Types of Audit Content Project s A nalytics Data Exce l Word Crystal Reports PDF Audio PowerPoint Results

Increase the accuracy of your audit findings

Expand the quality and scope of audit activities

Maintain the integrity and security of data

Centralized Audit Management

Engagement & Content Management

Automation

Analytic Processing

Generate more meaningful results Spend more time analyzing data, less time writing analytics Automate the analysis of key risk areas Key Benefits: Starter Pack Cost Management General Ledger Purchase to Payment A nalytics

Generate more meaningful results

Spend more time analyzing data,

less time writing analytics

Automate the analysis of key risk areas

Starter Pack

Cost Management

General Ledger

Purchase to Payment

Greater audit insight into your SAP ® ERP data More efficient and effective SAP ® ERP audits Confidence in the integrity and security of data Key Benefits: ERP .FIL Format

Greater audit insight into your SAP ® ERP data

More efficient and effective SAP ® ERP audits

Confidence in the integrity and security of data

AX Core Streamlined data access for more efficient and effective enterprise data audits Get the right data at the right time Confidence in the security of sensitive information Key Benefits: powered by .FIL Format

Streamlined data access for more efficient and effective enterprise data audits

Get the right data at the right time

Confidence in the security of sensitive information

Increase internal audit’s value to the organization Support continuous auditing Improve audit team efficiency Key Benefits: Business Stakeholders Accounts Payable Purchasing Accounts Receivable Payroll Accounting AX Core Exceptions

Increase internal audit’s value to the organization

Support continuous auditing

Improve audit team efficiency

ACL D/B Interface Connections from AX Core Enterprise Data Exceptions distributed via web-based viewer Apply proven analytics Auditors & Audit Leadership ACL Specialist Business Stakeholders Manage All Types of Audit Content SQL ERP Centralized Audit Management Engagement & Content Management Automation Analytic Processing Project s A nalytics Data Exce l Word Crystal Reports PDF Audio PowerPoint Results

Centralized Audit Management

Engagement & Content Management

Automation

Analytic Processing

Professional Services Professional Services Consulting l Training l Support Achieve faster results Gain expert advice Learn best practices Key Benefits: Avoid costly mistakes Get answers when you need them most

Achieve faster results

Gain expert advice

Learn best practices

Avoid costly mistakes

Get answers when you need them most

Additional Slides

22 Years of Data Analysis Solutions Fortune 100 95% External Audit : Big 4 Audit firms 100% Global 500 70% Fortune 500 85% Clients include 215,000+ licensed users, 13,900+ organizations in 150 countries Commercial Public Sector Public Accounting / Business Services 200+ departments in 37 national governments 500+ regional, state and local governments Wells Fargo Foothill

IIA Software Survey: Data Analysis Software Other: ActiveData, DCMS, Hyperion, SAP, and SAS. IT Audit Benchmark Study 2009

IIA Software Survey: Fraud Detection / Investigation Other: Access, ActiveData, Crystal Reports, DCMS, DISSCO, Focus, Patriot Officer, PeopleSoft Queries, SAS, Showcase Query, and VIPs. IT Audit Benchmark Study 2009

IIA Software Survey: Data Extraction Software Other: Access, Business Objects, Crystal Reports, IDEA, Showcase, and internally developed software. IT Audit Benchmark Study 2009

Why Use Data Analytics? Increase effectiveness, gain more insight Analyze 100% of transactions Compare/analyze data from different applications & systems Accurately detect and gauge control weaknesses Identify instances of fraud, errors and inefficiencies Increase efficiency, get more done Identify and prioritize areas of risk Automate repetitive analysis “ Leading internal audit functions use data analytics for numerous activities, including risk assessment, planning, execution and reporting.” Ernst & Young, Global Internal Audit Survey 2008

Increase effectiveness, gain more insight

Analyze 100% of transactions

Compare/analyze data from different applications & systems

Accurately detect and gauge control weaknesses

Identify instances of fraud, errors and inefficiencies

Increase efficiency, get more done

Identify and prioritize areas of risk

Automate repetitive analysis

Apply Analytics Throughout the Audit Process Ad-hoc testing to determine areas of greatest risk and materiality Focus valuable audit resources on high-priority audit goals and objectives Identify specific data requirements Use data access capabilities to gather required data Analyze, review and evaluate 100% of relevant data and transactions Automate repetitive and continuous analysis to improve efficiency and coverage Conduct peer reviews to enhance overall quality of your audits A Log file keeps a complete audit trail of all testing and procedures performed Identify and report your audit findings Cut and paste, export to other applications, distribute exceptions to business Shorter audit cycles, improved efficiency, increase audit coverage and assurance Identify opportunities for operational efficiency and cost savings Stronger internal controls and support for compliance programs

Ad-hoc testing to determine areas of greatest risk and materiality

Focus valuable audit resources on high-priority audit goals and objectives

Identify specific data requirements

Use data access capabilities to gather required data

Analyze, review and evaluate 100% of relevant data and transactions

Automate repetitive and continuous analysis to improve efficiency and coverage

Conduct peer reviews to enhance overall quality of your audits

A Log file keeps a complete audit trail of all testing and procedures performed

Identify and report your audit findings

Cut and paste, export to other applications, distribute exceptions to business

Shorter audit cycles, improved efficiency, increase audit coverage and assurance

Identify opportunities for operational efficiency and cost savings

Stronger internal controls and support for compliance programs

Apply Analytics Throughout the Audit Spectrum Specific analytic queries – performed at a point in time – for the purpose of generating audit report findings Managed analytics – created by specialists – and deployed from a centralized, secure environment, accessible to all appropriate staff Continual execution of automated audit tests to identify errors, anomalies, patterns and exceptions as they occur Explorative & investigative in nature Seeking documented conclusions & recommendations Periodic analysis of processes from multiple data sources Seeking to improve the efficiency, consistency & quality of audits “ Always on” - scripted auditing & monitoring of key processes Seeking timely notification of trends, patterns & exceptions Supporting risk assessment & enabling organizational efficiency ad hoc repetitive 24  7  365 continuous

Explorative & investigative in nature

Seeking documented conclusions & recommendations

Periodic analysis of processes from multiple data sources

Seeking to improve the efficiency, consistency & quality of audits

“ Always on” - scripted auditing & monitoring of key processes

Seeking timely notification of trends, patterns & exceptions

Supporting risk assessment & enabling organizational efficiency

Customer Quote Tom Boyle, District Audit Office Palomar Pomerado Health AuditExchange 2.0 enables real-time communication between auditors, stakeholders and management. It’s a huge advantage for our continuous monitoring plan and the improved security strengthens our ongoing compliance efforts.

Customer Quote Tom Boyle, District Audit Office Palomar Pomerado Health Audit Exchange 2.0, with the AX Exception component, has improved our controls monitoring across the business. We have automated both audit testing and distributing the results for appropriate follow up. It now runs seamlessly and we have an audit trail that confirms exceptions are reviewed and dealt with. This is a much better alternative to sending audit reports with attachments, to people who may or may not answer, and then manually cutting and pasting auditee feedback back into audit reports.

Customer Quote Tom Boyle, District Audit Office Palomar Pomerado Health We were very pleased to have skilled guides throughout the migration process and the consultants onsite proved to be invaluable. We are light years ahead of where we’d be if we had tried to do it all ourselves.

Technology Significant increase is technology usage suggests internal audit realizes the cost benefit of tools that increase efficiency and effectiveness. Global Internal Audit Survey 2008

Technology The growing role of technology has become a key identifier of highly effective internal audit functions. Global Internal Audit Survey 2008

Technology High-performing internal audit functions maximize the use of technology to enhance the efficiency, effectiveness, and quality of operations. State of the Internal Audit Profession Study 2009

Technology Inefficiencies in audit execution often result from too little use of technology. Richard Chambers, IIA President

Data Analytics Internal audit’s data analytic capabilities, instrumental to effectively examining the large volumes of data readily accessible through ERP systems for anomalies and other fraud indicators, are now even more critical. State of the Internal Audit Profession Study 2009

Data Analytics To improve effectiveness in the search for errors or unusual transactions, internal audit should test entire data populations automatically. State of the Internal Audit Profession Study 2009

Data Analytics We believe – and our survey respondents agree – that internal audit functions must embrace technology in all phases of the internal audit process and ensure that both IT and non-IT auditors are armed with a practical application of relevant systems and data analytics. State of the Internal Audit Profession Study 2009

Data Analytics Leading internal audit functions use data analytics for numerous activities, including risk assessment, planning, execution and reporting. Global Internal Audit Survey 2008

Value of Internal Audit Perhaps the enduring challenge facing internal audit leaders is the need to continually demonstrate and communicate their function’s real value... State of the Internal Audit Profession Study 2009

Value of Internal Audit To strengthen quality, internal audit should apply technology to conduct real-time reviews, escalate issues, and ensure compliance with standards. State of the Internal Audit Profession Study 2009

Value of Internal Audit The internal audit landscape continues to progress – offering internal audit a more strategic role in the organization by focusing its efforts on business and process improvement. Global Internal Audit Survey 2008

How is ACL Desktop Different from Excel? Why not use Excel? Lack of data integrity - values may be altered deliberately or accidentally Error prone - errors in input, logic, data interfaces and use Not in line with IT regimes for critical applications – documentation, testing, version control Difficult to access a variety of data formats Limited data file sizes Keeping track of, distributing most current version can be inefficient, error-prone Lacks pre-built audit functionality (Aging, Benford, MUS, Stratify) No audit log Limited automation capabilities

Lack of data integrity - values may be altered deliberately or accidentally

Error prone - errors in input, logic, data interfaces and use

Not in line with IT regimes for critical applications – documentation, testing, version control

Difficult to access a variety of data formats

Limited data file sizes

Keeping track of, distributing most current version can be inefficient, error-prone

Lacks pre-built audit functionality (Aging, Benford, MUS, Stratify)

No audit log

Limited automation capabilities

Extend the Value of Analytics Business Stakeholders No ACL Desktop Use Receives and takes action on exceptions found during the audit process Auditor No ACL Desktop Use Review and work with results of analytic testing Report on and document findings Audit Leadership No ACL Desktop Use Ensures effective and efficient audit coverage Review analytic findings across team and against audit plan objectives ACL Specialist ACL Desktop User Ad-hoc analysis Advanced query and analysis Create, manage scripts Interact, validate and share results across audit tem Data Specialist ACL Desktop, DL, ETL User Access data in large volumes from disparate systems Prepare data for analysis Make data available to ACL Specialist

Business

Stakeholders

No ACL Desktop Use

Receives and takes action on exceptions found during the audit process

Auditor

No ACL Desktop Use

Review and work with results of analytic testing

Report on and document findings

Audit Leadership

No ACL Desktop Use

Ensures effective and efficient audit coverage

Review analytic findings across team and against audit plan objectives

ACL Specialist

ACL Desktop User

Ad-hoc analysis

Advanced query and analysis

Create, manage scripts

Interact, validate and share results across audit tem

Data Specialist

ACL Desktop, DL, ETL User

Access data in large volumes from disparate systems

Prepare data for analysis

Make data available to ACL Specialist

Extend the Value of Analytics Business Stakeholders No ACL Desktop Use Receives and takes action on exceptions found during the audit process Auditor No ACL Desktop Use Review and work with results of analytic testing Report on and document findings Audit Leadership No ACL Desktop Use Ensures effective and efficient audit coverage Review analytic findings across team and against audit plan objectives ACL Specialist ACL Desktop User Ad-hoc analysis Advanced query and analysis Create, manage scripts Interact, validate and share results across audit tem Data Specialist ACL Desktop, DL, ETL User Access data in large volumes from disparate systems Prepare data for analysis Make data available to ACL Specialist

Business

Stakeholders

No ACL Desktop Use

Receives and takes action on exceptions found during the audit process

Auditor

No ACL Desktop Use

Review and work with results of analytic testing

Report on and document findings

Audit Leadership

No ACL Desktop Use

Ensures effective and efficient audit coverage

Review analytic findings across team and against audit plan objectives

ACL Specialist

ACL Desktop User

Ad-hoc analysis

Advanced query and analysis

Create, manage scripts

Interact, validate and share results across audit tem

Data Specialist

ACL Desktop, DL, ETL User

Access data in large volumes from disparate systems

Prepare data for analysis

Make data available to ACL Specialist

Extend the Value of Analytics Business Stakeholders No ACL Desktop Use Receives and takes action on exceptions found during the audit process Auditor No ACL Desktop Use Review and work with results of analytic testing Report on and document findings Audit Leadership No ACL Desktop Use Ensures effective and efficient audit coverage Review analytic findings across team and against audit plan objectives ACL Specialist ACL Desktop User Ad-hoc analysis Advanced query and analysis Create, manage scripts Interact, validate and share results across audit tem Data Specialist ACL Desktop, DL, ETL User Access data in large volumes from disparate systems Prepare data for analysis Make data available to ACL Specialist

Business

Stakeholders

No ACL Desktop Use

Receives and takes action on exceptions found during the audit process

Auditor

No ACL Desktop Use

Review and work with results of analytic testing

Report on and document findings

Audit Leadership

No ACL Desktop Use

Ensures effective and efficient audit coverage

Review analytic findings across team and against audit plan objectives

ACL Specialist

ACL Desktop User

Ad-hoc analysis

Advanced query and analysis

Create, manage scripts

Interact, validate and share results across audit tem

Data Specialist

ACL Desktop, DL, ETL User

Access data in large volumes from disparate systems

Prepare data for analysis

Make data available to ACL Specialist

Extend the Value of Analytics Business Stakeholders No ACL Desktop Use Receives and takes action on exceptions found during the audit process Auditor No ACL Desktop Use Review and work with results of analytic testing Report on and document findings Audit Leadership No ACL Desktop Use Ensures effective and efficient audit coverage Review analytic findings across team and against audit plan objectives ACL Specialist ACL Desktop User Ad-hoc analysis Advanced query and analysis Create, manage scripts Interact, validate and share results across audit tem Data Specialist ACL Desktop, DL, ETL User Access data in large volumes from disparate systems Prepare data for analysis Make data available to ACL Specialist

Business

Stakeholders

No ACL Desktop Use

Receives and takes action on exceptions found during the audit process

Auditor

No ACL Desktop Use

Review and work with results of analytic testing

Report on and document findings

Audit Leadership

No ACL Desktop Use

Ensures effective and efficient audit coverage

Review analytic findings across team and against audit plan objectives

ACL Specialist

ACL Desktop User

Ad-hoc analysis

Advanced query and analysis

Create, manage scripts

Interact, validate and share results across audit tem

Data Specialist

ACL Desktop, DL, ETL User

Access data in large volumes from disparate systems

Prepare data for analysis

Make data available to ACL Specialist

Extend the Value of Analytics Business Stakeholders No ACL Desktop Use Receives and takes action on exceptions found during the audit process Auditor No ACL Desktop Use Review and work with results of analytic testing Report on and document findings Audit Leadership No ACL Desktop Use Ensures effective and efficient audit coverage Review analytic findings across team and against audit plan objectives ACL Specialist ACL Desktop User Ad-hoc analysis Advanced query and analysis Create, manage scripts Interact, validate and share results across audit tem Data Specialist ACL Desktop, DL, ETL User Access data in large volumes from disparate systems Prepare data for analysis Make data available to ACL Specialist

Business

Stakeholders

No ACL Desktop Use

Receives and takes action on exceptions found during the audit process

Auditor

No ACL Desktop Use

Review and work with results of analytic testing

Report on and document findings

Audit Leadership

No ACL Desktop Use

Ensures effective and efficient audit coverage

Review analytic findings across team and against audit plan objectives

ACL Specialist

ACL Desktop User

Ad-hoc analysis

Advanced query and analysis

Create, manage scripts

Interact, validate and share results across audit tem

Data Specialist

ACL Desktop, DL, ETL User

Access data in large volumes from disparate systems

Prepare data for analysis

Make data available to ACL Specialist

Starter Pack General use analytics that are applicable to many audit & fraud detection situations. Cost Management Analytics designed to identify fraud, errors, risk and inefficiencies within organizations. General Ledger General ledger analytics that enhance an auditor’s effectiveness to address errors and fraud in financial statements. Purchase to Payment Analytics designed to enhance an auditor’s effectiveness to audit an organization’s purchase to pay cycle.

Available Data Sources AX ™Datasource includes: Flat files Delimited ODBC - compliant data sources Sybase SQL Informix Oracle dBase Microsoft Access Simple XML Connectors for ERP Systems include: Oracle e-Business Suite PeopleSoft Enterprise SAP ERP, BW, CRM Connectors for Databases include: DB2 Teradata IMS for z/OS VSAM for z/OS ADABAS for z/OS Connectors for Data include: PDF Spreadsheet data Report (Print) files Complex XML XBRL SAP Private file formats Add-ons include format libraries for: SWIFT HIPAA HL7

AX ™Datasource includes:

Flat files

Delimited

ODBC - compliant data sources

Sybase

SQL

Informix

Oracle

dBase

Microsoft Access

Simple XML

Connectors for ERP Systems include:

Oracle e-Business Suite

PeopleSoft Enterprise

SAP ERP, BW, CRM

Connectors for Databases include:

DB2

Teradata

IMS for z/OS

VSAM for z/OS

ADABAS for z/OS

Connectors for Data include:

PDF

Spreadsheet data

Report (Print) files

Complex XML

XBRL

SAP Private file formats

Add-ons include format libraries for:

SWIFT

HIPAA

HL7