1 Audit Automation for Implementing Continuous Auditing: Principles and Problems October 2, 2009

2 Ray Henrickson CA, CAIT, CACISA VP Information Systems & Technology Audit Bank of Nova Scotia Former IT Audit partner, Ernst & Young Chairman, IT Advisory Committee, Canadian Institute of Chartered Accountants Bias towards audit and control practicality My job is to convert good ideas into audit conclusions

3 Author’s Motivation Or Justification Discussion of issues and recommendations in developing and implementing automated audit procedures Good discussion at the generic level but could have stronger tie to continuous auditing Instructive to the novice control assessor In line with my experience, could have gone into more detail of the practical considerations that stand in the way of success

4 Theoretical Support Good scholarly reference Reference to first hand experience Priority for formalizing existing, manual audit procedures Limited discussion on inherent system limitations

5 Research Method Deployed Direct participation and observation gives strength to the discussion Could have elaborated on the tie in between experience and recommendations

6 Analysis of Results Advisory rather than analytical Observations and recommendations reflect experience

7 Study Conclusions I agree with all that is presented The authors have presented valuable issues related to getting started on the path to audit automation Could expand on alternatives to the auditor’s development of automation Implicit challenge to the audit profession to step up

8 Present Or Potential Contribution To Knowledge Or Practice In The Field Refreshes the lessons of the past To consider for the future: Benefits of the recommendations Why don’t we have more audit automation Automation of audit judgement Automation for continuous audit Working with management’s automation to provide assurance

9 Exposition I liked it Readable and understandable Valuable advice to auditors and management