A slide show on IT Enabled Audit Tools

1. IT Enabled Audit Tools
CA S. Rathinagiri
Erode Branch
SIRC of ICAI
28/07/2012
http://www.rathinagiri.in
srgiri@dataone.in

2. Information Technology
The basics
Information → Data → Information
Use of computers
Nature of Business Data
Text Data
Spatial Data
Independence of Data
http://www.rathinagiri.in
srgiri@dataone.in

3. Audit
Traditional Way (Around Computers – Black Box)
Financial Opinion Audit
Operational/Process Audit
Compliance Audit
Hybrid/Integrated (Through Computers – White
Box)
Fully IT related (With Computers – Tool Box?)
http://www.rathinagiri.in
srgiri@dataone.in

4. Impact of IT
http://www.rathinagiri.in
srgiri@dataone.in

5. What is changed?
Nature of Data?
Procedures?
Controls?
Risks/Threats/Vulnerabilities/Errors/Frauds?
Volume?
Form?
Mode? Technology?
http://www.rathinagiri.in
srgiri@dataone.in

6. Advantages of IT Enabled Audit
Effectiveness
Speed
Simplicity
Control over the audit
Avoidance of monotonous and redundant job
Reliance
Audit Templates
http://www.rathinagiri.in
srgiri@dataone.in

7. Problems/Limitations
Computers are supposed to solve problems but
many times they ARE the problems.
Less integration of the systems turns out to MORE
problems
Not cost effective
Documentation
IT knowledge of auditors/staff
Problems in test data and year change over.
http://www.rathinagiri.in
srgiri@dataone.in

8. Audit Tools
Application Software
Regular Reports/Special Reports/Exceptional Reports
etc.,
Electronic Spreadsheet Software
Audit Tools Software like
ACL (Audit Command Language)
IDEA (Interactive Data Extraction and Analysis)
OLAP, BI, Data mining Tools
http://www.rathinagiri.in
srgiri@dataone.in

9. Features of Audit Tools
ETL
Creating a Trail of Audit Trails
Electronic Working Papers
Test Data creation
Several Scientific methods of Sampling
Aging analysis of data
http://www.rathinagiri.in
srgiri@dataone.in

10. Features of Audit Tools – Contd.
Finding of Exceptional Data
Identifying Gaps
Duplicates
Summarising and stratifying (arrange/index/sort)
data
Graphical representation of data
Export of results
http://www.rathinagiri.in
srgiri@dataone.in

11. Approach to IT audit
Updating IT knowledge
Manual/Help available with the software
Googling/Yahooing
Forums
Various other resources like slideshares, e-books etc.,
http://www.rathinagiri.in
srgiri@dataone.in

12. Approach to IT Audit – cont.
Usage of tools available
Spreadsheet (Excel/Openoffice/Libre Calc)
Formulas
Functions
Macros
Data Import and analysing facilities
Sorting
Filtering
Pivot Tables
http://www.rathinagiri.in
srgiri@dataone.in

13. Approach to IT Audit – contd.
Goal Seeking
Scenarios
Charts
Dependencies and Precedents
Sub-total
Database Software (Access/Base/SQL software)
Summarise, Sort, Filter, Compare, Join
Simple English like Language
ETL
http://www.rathinagiri.in
srgiri@dataone.in

14. Novel Approach – Data Mining Tools
Rapid Miner
Open source
Free
Easy to adapt
http://www.rathinagiri.in
srgiri@dataone.in

15. http://www.rathinagiri.in
srgiri@dataone.in

16. Data mining Tools – cont.
Pentaho
Opensource
Business Intelligence
Data Analytics
http://www.rathinagiri.in
srgiri@dataone.in

17. http://www.rathinagiri.in
srgiri@dataone.in

18. What the heck?!
Don't over do
Expect the unexpected
Use the unusual
Think, think, ponder, ponder and
Be a volcano
http://www.rathinagiri.in
srgiri@dataone.in

19. Any questions?
http://www.rathinagiri.in
srgiri@dataone.in

20. http://www.rathinagiri.in
srgiri@dataone.in