ACL Solutions for Continuous Auditing and Monitoring John Verver CA, CISA, CMC Vice President, Professional Services & Product Strategy ACL Services Ltd

Copyright © 2008 ACL Services Ltd. 2 ACL Services Ltd. Continuous Auditing and Monitoring: Where are we? Where are we going? ACL has 11,000+ user organizations globally 33-40% of organizations consider they perform some form of Continuous Auditing Chief Audit Executive surveys indicate Continuous Auditing and Monitoring usage will more than double by 2012

Copyright © 2008 ACL Services Ltd. 3 ACL Services Ltd. Continuous Auditing – ACL’s Experience Wide variation in CA approach and techniques CA part of a continuum of analytic usage Flexibility is key

Copyright © 2008 ACL Services Ltd. 4 ACL Services Ltd. ad hocrepetitive 24  7  365 continuous Continuum of Audit Analytics One-off analysis and testing Automated analyses and tests Managed and deployed from a central environment Continual execution of automated audit and monitoring tests to identify errors, fraud and anomalies on a timely basis

Copyright © 2008 ACL Services Ltd. 5 ACL Services Ltd. Continuous Auditing: Issues to Address Data access and management Quality and control Sustainability and productivity People and process

Copyright © 2008 ACL Services Ltd. 6 ACL Services Ltd. ad hocrepetitive 24  7  365 continuous A MANAGED ANALYTICS PLATFORM for AUDIT Secure controlled access to data Configuration, automation and scheduling of tests Management of tests, documentation, findings, logs, workflow One common platform Enabling the Continuum of Audit Analytics

Copyright © 2008 ACL Services Ltd. 7 ACL Services Ltd. Data Access Reporting & Presentation Analytic Library Query & Analysis Management & Automation Management & Automation Audit repository User access & rights, data security Centralized tests and processing Continuous auditing management Configuration & management Query & Analysis In-depth analysis Audit-specific commands & scripting Advanced analytics and predictive modeling Centralized logging Data Access Access, extract, transform, load Specialized format connectors Audit data repository Reporting & Presentation Templates, charting Dashboard integration Report deployment and maintenance Analytic Library Packaged analytics, key business processes

Copyright © 2008 ACL Services Ltd. 8 ACL Services Ltd. Audit Analytics Repository Data Data sets for each audit area Data dictionaries Data management & refresh Findings & Results Results management Specific findings Logs & other documentation Analytics Test library Test documentation “Best Practices” documentation Management & Automation Scheduling Administration User access & rights Search Security

Copyright © 2008 ACL Services Ltd. 9 ACL Services Ltd. Populating and Refreshing the Audit Data Repository INFORMATICA for ACL AuditExchange o Industry leading technology for ETL (Extract Transform Load) o Connectors for any enterprise data  PowerCenter:  Flat files, delimited text, XML, Access, Oracle, Sybase, Teradata, ODBC, Informix, SQL Server, dBase  B2B Complex Data Exchange:  PDF, XML, XBRL, Excel  PowerExchange  Specialized data formats – HIPPAA etc ACL Data Access, including Direct Link for SAP

Copyright © 2008 ACL Services Ltd. 10 ACL Services Ltd. ACL: Continuous Auditing and Continuous Monitoring ACL AuditExchange o Enables Best Practices in Audit Analytics o Provides a secure, controlled, well-managed and sustainable environment for the continuum of Audit Analytics – Ad Hoc through Continuous Auditing o Provides benefits of Audit Analytics to the entire audit team, according to roles o A reliable environment for Continuous Auditing ACL Continuous Controls Monitoring o Provides management and audit with insight into control effectiveness o Monitors all transactions throughout business process cycles o Tests against suites of control rules o Identifies and quantifies exceptions on a timely basis o Supports exception resolution and control remediation o Configuration and management of the monitoring process

Copyright © 2008 ACL Services Ltd. 11 ACL Services Ltd. ACL Continuous Controls Monitoring Technology Framework

Copyright © 2008 ACL Services Ltd. 12 ACL Services Ltd. ACL CCM Product Suite Continuous testing of transactions in core business process areas against sets of internal control rules Purchase to Pay Procurement Card Travel & Entertainment Payroll Order To Cash General Ledger

Copyright © 2008 ACL Services Ltd. 13 ACL Services Ltd. ACL CCM Product Suite Browser-based interface: o Manage Continuous Monitoring process o Security and Administration o Manage test parameters o View, report and manage exceptions

Copyright © 2008 ACL Services Ltd. 14 ACL Services Ltd. ACL CCM Product Suite – Large Enterprise Version Advanced capabilities for complex large scale enterprise monitoring For 10+ control entities: o Enhanced multi-entity configuration o Enhanced multi-entity parameter management o Enhanced workflow and remediation

Copyright © 2008 ACL Services Ltd. 15 ACL Services Ltd. ACL audit analytics used for many years in Siemens entity internal audit organizations Siemens Power Generation one of first organizations to implement ACL CCM Purchase to Pay implementation of ACL Continuous Monitoring – Large Enterprise Version for Purchase to Pay systems across entire Siemens enterprise Believed to be largest purchase-payment transaction monitoring project in the world ACL Enterprise Continuous Monitoring at

Copyright © 2008 ACL Services Ltd. 16 ACL Services Ltd. Enterprise Controls Monitoring at Siemens Scale All corporate entities (currently 900+) All Purchase to Pay transactions Daily with 90 days running history 27 control tests 275 different data sources & applications Average 5GB of source data analyzed per entity Primary integration environment: analysis of 200GB data for ~400 entities

Copyright © 2008 ACL Services Ltd. 17 ACL Services Ltd. Enterprise Controls Monitoring at Siemens Exceptions: workflow process Process managed by entity business owners o review all exceptions o assign appropriate category Unresolved exceptions automatically escalated through multiple CFO levels

Copyright © 2008 ACL Services Ltd. 18 ACL Services Ltd. Questions? Contact: