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THE FUTURE OF AUDIT SPECIFIC SOFTWARE: A LOOK AT SOME OF THE CHANGES TO EXPECT IN 2013 Porter Broyles
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THE FUTURE OF AUDIT SPECIFIC
SOFTWARE: A LOOK AT SOME
OF THE CHANGES TO EXPECT IN
2013Porter Broyles
The Desire forCAATTS
And Continuous Assurance
CAATS VS CAATTS
Computer Aided Audit Tools
Vs
Computer Aided Audit Tools and Techniques
CONSISTENTLY SOUGHT
Protiviti: 2012 Internal Audit Capabilities and Needs Survey
52 ESSENTIAL AUDIT SKILLS
Com
pete
ncy
Need to ImproveProtiviti: 2012 Internal Audit Capabilities and Needs Survey
Continuous Audit
CAATS
Continuous Monitoring
Data Manipulation
Tools
Statistical Analysis
Sampling Tools
Internal Marketing
WHAT DOES IT TAKE? 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
TONE AT THE TOP
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.
PLACE HIGH PRIORITY ON LEVERAGING TECHNOLOGY TO BOOST PERFORMANCE.
In exercising due professional care, internal auditors must consider the use of technology-based audit and other data analysis techniques. (Standard 1220.A2)
Should consider use of CAATTS with every Audit. (Example: My Quality Assurance Review.)
NO REQUIREMENT LOWERS EXPECTATIONS
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
HIRE THE RIGHT SKILLSOver 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
TRAIN TRAIN TRAINCost 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)
HOW IS TRAINING PERFORMED
Auditnet – 2012 State of Technology Use by Auditors
TRAINING A LITTLE BETTER FOR CURRENT STAFF
ACL SUPER USERS 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
WHICH TOOLS ARE USED:
2012 Auditnet Survey Report on Data Analysis Software and Auditors
ABOUT ACL 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
ABOUT CASEWARE INTERNATIONAL INC
Founded in 1988 Toronto Ontario 130 countries IDEA designed by Canadian Institute of
Chartered Accountants (CICA) 280+ employees plus distributors
ACL AND IDEA 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.
BUILT-IN FUNCTIONS INCLUDE: Reading computer fillies Selecting data Manipulating data Sorting data Summarizing data Performing calculations Selecting samples Printing reports
ACL VS IDEA Very similar tools Both designed for auditors
Ease of useProgramming languageAudit specific commands/toolsLogging of tests
Both have advantages/disadvantages with each other
ARGUING OVER WHICH IS BESTIs like arguing over which is better :
Apple or PCFord or ChevyCreamy or Chunky Peanut ButterStar Wars or Star Trek
You have experts on both sides, but the truth might be somewhere in between.
INTANGIBLES FOR IDEA
1) Houston is an IDEA hotspot
2) VBA is base language
3) Several significant upgrades over past few years
INTANGIBLES FOR ACL1) 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.
DISADVANTAGES OF ACL Focus has been on ancillary products
WorkpapersAcernoAudit Exchange Importer
No major enhancements from 2003 to 2012Most improvements have either failed or Alienated the user core
WHAT’S IN STORE NEXT YEAR?
ACL/IDEA BIGGEST COMPETITORMicrosoft Excel 2013 Advantages
New functionsAutocomplete of pattern recognitionRecommended tables/charts2 billion record limit
DisadvantagesFat finger errorsAffects original dataNo log Issues about effeceincy
WHAT IS ARBUTUS Grant Brodie Different direction for company Broke off in 2003
ACL to the auditorsArbutus to IT
Do not compete expires on March 1, 2013
Very small staff.
ADVANTAGES OF ARBUTUS
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.
ACL VERSION 11
Enhanced abilities to read/load/export files. Excel Linking to data
Enhanced debugging capabilities. Better colorization Section walk through Line by line
Enhance procedure capabilities. Shared scripts Lock and protect procedures Callable subroutines
OR WAS IT 15?
Intelligent file deletion.
Temporary file prefix.
Variable/Field arrays.
Many new functions/commands . FORMAT() Numerous date/time functions Enhanced REPLACE(), INCLUDE(), EXCLUDE(),
SPLIT()
ARBUTUS ANALYZER
Shared folders.
Reusable print-to-image definitions.
Colorized triggers
“Smart Search”
DISADVANTAGE OF ARBUTUS
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?
THE YEAR FOR ACL Needs to release new upgrades.
Version 10 in AprilPromises for upgrades every 6 monthsUpgrades must be successful/non-buggy.
Annual Convention in April
Major threat from Arbutus. (Potential threat from IDEA.)
Likely to lose market share
THE YEAR FOR ARBUTUS?
Potential market share.
Should grow significantly.
Might capture some IDEA users
Big question is Arbutus itself?
THE YEAR FOR IDEA 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.
