Experience of Leading Edge Organizations with CA/CM: Understanding the Challenges around People, Process and Technology

The Audit Maturity Model (1) Stage 1Stage 2Stage 3Stage 4 Traditional AuditEmergingMaturingContinuous Audit ObjectivesAssurance on the financial reports presented by management Effective control monitoring Verification of the quality of controls and operational results Audit by exception Improvements in the quality of data Creation of a critical meta- control structure ToolingManual processes & separate IT audit Spots of IT and financial / OA audit integration Auditing links financial to operational processes Most of audit automated ApproachTraditional interim and year-end audit Traditional plus some key monitoring processes Usage of alarms as evidence Continuous control monitoring Audit by exception IT/Data accessCase by case basis Data is captured during the audit process Repeating key extractions on cycles Systematic monitoring of processes with data capture Complete data access Audit data warehouse, production, finance, benchmarking and error history Audit AutomationnoneAudit management software Work paper preparation software Automated monitoring module Alarm and follow- up process Continous monitoring and immediate response

The Audit Maturity Model (2) Stage 1Stage 2Stage 3Stage 4 Traditional AuditEmergingMaturingContinuous Audit Audit and management sharing Independent and adversarial Independent with some core monitoring shared Shared systems and resources where natural process synergies allow Purposeful Paralel systems and common infrastructures Management of audit functions Financial organization supervises audit and matrix to BOD Some degree of coordination between the areas of risk, auditing and compliance IT audit works independently IA and IT audit coordinate risk management IA shares with IT audit automatic audit processes Centralized and integrates with risk management, compliance and SOX/ layerd with external audit. High level of reliance. Analytic methodsFinancial ratiosFinancial ratios at sector level KPI level monitoring Structural continuity equations Monitoring at transaction, account and fiancnial report account level Corporate models of the main sectors of the business Early warning system

The Audit Maturity Model (4)