1. Randy Cowell - Regional Director
Current Trends in Audit Management Technology – “Changing Times for Audit”
Randy Cowell - Regional Director

2. Introductions Randy Cowell Regional Director, CCH TeamMate
20 Years of Internal Audit, Methodology and Audit Management Software Experience
Assisted over 200 organizations in the selection and implementation of audit management software
Led the IIA in their implementation of TeamMate for Quality Assessment program

3. Increasing Pressures
In this tough economic climate, internal audit shops around the world are under pressure to be as efficient as possible.
How to do more with less is a question on everyone’s mind.
Do we agree with this?
Has any been faced with staff cuts?
How about budget cuts?
Taking on different job responsibilities as a department? Like Risk or Governance, Risk, & Compliance SOX work

4. Our Objective
Answer the question: How to do more with less?

5. Audit Memory Lane
Does any one remember when we used “Green bar” paper to document our work.
How about when there was no .
When there were no computers.
No Word or Excel.
When there were no audit tools.

6. Have the technology advances changed what we do as auditors?
What do you think? It hasn’t changed “what we do” but “how we do it.”
We haven’t changed that we review risk and propose things to mitigate that risk. We have just changed how we go about analyzing it.

7. How have things changed?
Slide presentations
Documents & Spreadsheets
Automated tools
Telecommuting
Network/Servers
Distributed Workforce
Web meetings
20-25 years ago, we were not dealing with this stuff. Things were very manual and it has taken time for audit shops to change with the ever increasing technology changes. How does your audit shop adjust to this ever changing environment.
Data files
Videos

8. What type of tools do you need?
Data Extraction
Data Analysis
Risk Assessment/ Compliance
Fraud Detection
Audit Management

9. Data Extraction tools
Data Extract tools provide the ability to obtain and find meaning in data by cutting and dicing or drilling down to the required level of detail.
Benefits include:
Improved productivity and efficiency.
Ability to spot fraud, expenses abuse, and a failure to record staff taking annual leave, for example.
Data
Spreadsheet
Extract

10. Data Extraction Software
ACL
SAP
IDEA
SQL
Excel

11. Data Analysis tools
Data analysis tools take data that has been extracted and helps auditors find meaning in a mass of data or spot trends.
Benefits include:
increase the efficiency of audits.
Instead of working with a limited sample of data — such as a cross section of invoices — these tools can analyze all of it, giving better audit coverage.
Data
Spreadsheet
Analyze

12. Data Analysis Software
ACL
Excel
Access
IDEA

13. Fraud Detection/Investigation tools
Fraud Detection/Investigation tools helps audit shops spot anomalies, fraud indicators, and other red flags that they wouldn’t have seen otherwise.
ACL
Excel
IDEA
Crystal Reports
SAS

14. Risk Assessment tools
Risk assessment tools helps audit departments assess risks for their annual audit plan
Benefits include:
Helps auditors track risks consistently and provide a standard format for all risk assessments and risk calculations.
Facilitate comparison of risks across the organization.
Saves time when performing new risk assessments.
Prepare the annual audit plan more quickly.
Easily update risk criteria as an audit assignment progresses.
Can determine at a glance which areas of the business are “high risk.”

15. Risk Assessment software
Excel
TeamRisk
Internally developed
I do not see how you can obtain the benefits with using Excel, but I can with TeamRisk.

16. Other Tools Lesser used tools are used by audit departments, such as:
Compliance tools - allow organizations to benchmark departments, contractors, services, etc. against defined standards.
Control self-assessment tools.
GRC tools
Sox tools
Continuous auditing tools

17. Automated Workpaper tools
Automated workpaper tools helps audit departments :
Standardize their audit work, be more productive, and provide consistent results & reporting styles.
They also facilitate review and sharing of audit files with peers, which leads to better quality work overall.
Provide centralized storage of workpapers making it easier for auditors to access information and improves the organization of the audit shop as a whole.
Also helps ensure workpapers comply with The IIA’s International Standards for the Professional Practice of Internal Auditing (Standards).
Facilitate audit tracking and repeat or follow-up assignments, which helps cut audit planning time and staff workload.

18. Automated Workpaper tools
Various benefits include:
Automated tools allow for easy tracking of audit issues and the related responses.
Able to compile and issue draft/final reports much sooner after finishing audit fieldwork.
Colleagues working on the same assignment can review workpapers from remote locations.
Eliminates all hard copies of workpapers, which saves office space and reduces waste.

19. Automated Workpaper Software
TeamMate
AutoAudit
Word
Excel

20. The Bottom Line “Rewards” of Automating…
Increased productivity
Planning
Documentation
Review
Automatic Report Generation
Data mine (committee reporting and trend analysis)
Increased efficiency
No More “Lost” Manual Workpapers
No More “Lost” Data Scattered in Multiple Computer Files
Manager’s Expectations are Clearly Defined

21. What’s driving the need for audit tools?
Elevated profile of the audit dept - important part of governance infrastructure.
More engaged Audit Committees - looking for more information & quicker.
Management requires different levels of information.
Need to be “risk”-focused.
Constraints on budget and/or resources.
More requirements on managing & reporting on costs.
More emphasis on open issue tracking & recommendation follow-up.

22. Obstacles and Challenges
You are implementing more than just technology – you are implementing your methodology.
Therefore, you need to think about more than just technology.
Think about what your needs should be, rather than what they currently are.
Use the implementation of your tool as a change agent.
Technology
Methodology
Knowledge
Behaviour
Remember, as audit departments – our work is generally telling people that they need to “change” because of something that is being done is exposing the company to increased risk. And because of that we want you to make this “change” to mitigate the risk. And what do we get – they don’t want to change.
However, when considering an automated audit tool they say the same thing – we don’t want to “change.”

23. Things to expect from a system
Knowledge Management or content should be available.
Should mirror “the way you work” – your business process.
Needs to be a complete solution.
Functionality should be integrated.
Should be easy to use.

24. Further Considerations
Flexibility / configurability vs. “customization”
What is the level of vendor commitment and support
Is the software a complete solution
What type of connectivity issues do you have & what are the infrastructure requirements
Can the software easily adapt to your business
Enabler, not replacement of talent
Is there Management Support?
Do you have budget approval?
Is there Audit Committee Support?
Remember – are you willing to “adjust/change”

25. What are your needs: Work Papers Risk Assessment/Audit Planning
Project tracking & budgets
Timekeeping
Automatic Reports
Open issue tracking & follow-up
Monthly management reports
Trend analysis

26. Steps to Automating Identify current department information
Audit workpapers
Program & spreadsheets
What are you monthly management reports
Determine automation objective/needs
Is your current technology feasible
What is management expectations
Do you need to migrate historical data
Establish implementation timeframes

27. Steps to Automating 4. Evaluate Software Needs
Do you have any compatibility issues with current software
What is needed (as mentioned earlier)
5. Establish Automation Budget
Budget for software
Budget for hardware
Get budget approval

28. TeamMate Product Overview
A COSO-compatible risk assessment tool for generating risk based audit plans
A state of the art tool for scheduling your staff and audits
A web based issues tracking and reporting system
Effectively manage
budget vs. actual
time & expenses
TeamStore
A Comprehensive Electronic Work Paper system

29. TeamMate TeamStore
The TeamStore is an electronic repository that contains audit programs, workpaper templates, risk and controls as well as example exception write-ups.
The TeamMate TeamStore includes:
Over 10,000 searchable audit steps from AuditNet (including premium content)
The complete COBIT audit approach (over 300 IT audit steps)
The IIA Quality Assessment framework

30. TeamMate – The Industry Standard
Vendor Viability is Critical
In the past few years numerous Audit Management products have been discontinued and many vendors have ceased support or ceased development of upgrades.
Some products are being re-invented as SaaS solutions and forcing the licensee to abandon their current version and re-license the “new” version all over again.
Many products are GRC add-ons designed to pull clients in to a large and expensive GRC license.

31. TeamMate History 5,000 Number of end users TeamMate 1.0 TeamMate 97
GE Capital Finance
Washington SAO
10th User Forum
Microsoft
Texas SAO
South African AG
NAIC License
Northrop Grumman
Partnership with IIA
First User Forum
First License US Steel
Wal-Mart License
AuditNet Partnership
TeamMate 1.0
First windows based EWP system in the world
TeamMate 97
TeamMate R6
TeamRisk Added to the Product
TeamMate R8
TeamTEC Added to the Product
TeamMate R9
Complete Database upgrade
1993
1995
1997
2000
2002
2004
2006
2008
2009
TeamMate 2.0
TeamMate 2000
TeamCentral Added to the Product
TeamMate R7
TeamSchedule Added to the Product
TeamMate Acquired by CCH
Entire Team Goes to CCH
5,000
25,000
40,000
50,000
60,000
70,000
Number of end users

32. The Industry Standard
Selected TeamMate Users Include:

33. TeamMate – Installed Base
Quick Facts – as of October 1, 2009
1,800 organizations
72,000 end users
Used by the IIA on QARs
Adding 3 new organizations per week
Licensed in 98 Countries
Over 100 Fortune 500 Users
4 of the 5 largest companies in the world
Users Include:
AICPA
American Red Cross
Army
FDIC
ING North America Insurance International Mission Board
Institute of Internal Auditors (IIA)
Microsoft
NAIC
Rotary International
U.S. Department of Defense

34. Scalability
TeamMate is used by departments ranging in size from 1 to 2,500.
We are the large department (over 50 auditors) clear product of choice
Over 35 audit departments with over 250 auditors
4 departments with over 1,000 auditors

35. CCH TeamMate – Here to stay
The industry standard – used by twice as many auditors as all other systems combined
CCH is part of Wolters Kluwer – a $5 billion company / 20,000 employees
CCH is heavily investing in TeamMate
250% employee growth in past 2 years
30% revenue growth over past 2 years
TeamMate R9 – the most comprehensive upgrade to date – was released in August 2009
Development of R10 is well underway
Continuing to ramp up development resources
Continuing to build strategic alliances and partnerships
Actionable content is a key area of focus

36. The TeamMate Community of Users
Annual TeamMate User Forum
Largest Audit Software Conference in the World
2 Day Conference
Four Locations (United States, Europe, Asia, South Africa)
700 Attendees in the United States
Formal Focus Groups, Beta Test Groups and Contextual Design Groups

37. TeamMate User Forum - 2009 Participants from 20 Countries
Exhibitors (IIA, ACL, Pentax, PwC)
Over 21 Different Courses
Breakout Sessions by Industry
Vince Poscente – Key Note Speaker

38. TeamMate Community
A place for TeamMate users to obtain TeamMate information and share best practices
News and Events
Content
Downloads (including upgrades and hot fixes)
Discussion
Support
New Content Indicators
Activity Updates
Favorites
Alerts

40. Pricing is straight forward. There are no hidden costs or fees.
The TeamMate license includes all 5 applications as well as TeamImage (scanning software). The TeamMate license also includes over 10,000 audit steps
TeamMate does not require custom source code modification – the interface is highly configurable by the end user
Under the special “Competitive Upgrade” program* from October 1, 2009 through December 31, 2009 the TeamMate License includes the first two years of support and maintenance / upgrades
* To qualify for the competitive upgrade program, companies must upgrade from Auto Audit, Audit Leverage, AS/2, Auditor Assistant or Pentana to TeamMate from 9/15/09 through 12/31/09

41. Licensing and Pricing Issue / Exception Follow-up Management Review
We believe TeamMate’s favorable license policy is unique. An organization need only license TeamMate for its auditors and can allow broader participation and access without additional licenses as indicated below.
No Charge for these users
Risk Assessment
Process Owners, Risk Assessors
TeamRisk includes a web based self assessment model where process / control owners can log into TeamRisk and complete a risk assessment
External Review
Peer Review, QAR, Regulatory Review, CPA Firm Review
If your audit files are subject to an outside review, you can provide TeamMate at no charge to the outside reviewers in order to grant access to the workpapers.
Issue / Exception Follow-up
Issue Owner / Auditee
Issues / audit findings are tracked in TeamCentral. Audit departments can grant secured access to the issue owner allowing direct updating by the issue owner
Management Review
Management / Stakeholders
Audit departments can grant management and other stakeholders access to TeamCentral to view reports on a wide variety of KPIs

42. Training
CCH TeamMate has a world-class implementation and training department.
In addition to comprehensive on-site implementation and training services, the following options are also available:
Web based installation
Web based training
Recorded sessions (web based viewing)
Extensive on-line training materials
Train the trainers
TeamMate certification at the CCH Training center
TeamMate is highly intuitive – complete EWP training takes just one day.
Full Administrator training classes are available

43. TeamMate Support Support is available via:
toll-free phone call
on-site assistance
the web ( and user community)
direct online troubleshooting
CCH TeamMate delivers world class support through four regional support centers:
United States (Tampa)
Europe (London)
South Africa (Johannesburg)
AsiaPac (Sydney)