1. 1 Computer Assisted Audit Tools National Audit Office of Lithuanian accepts the challenge Meeting of representatives of Baltic, Nordic and Polish SAIs September 6 – 7, 2007 Tallinn

2. 2 1.The challenge 2.Retrospective – a step towards facilitation 3.The daily round – the way towards specificity 4.Today and tomorrow – the highway of digitalization Overview

3. 3 the challenge “… audit methods shall always be adapted to the progress of the sciences and techniques relating to financial management.” (INTOSAI the LIMA Declaration) CAATs – the challenge to accept… CAATs – the choice of efficient and effective audit… …the base…

4. 4 retrospective Computerization of the audit process – simplification and automation of the audit steps maintaining completeness, professionalism and reliability of the audit. CATTs’ assistance - any use of computer hardware and software. CAATs in The State Control since early 90-ties CAATs… are innovations that have always its opponents …a step towards facilitation of the audit process

5. 5 the daily round Computers become an inextricable part of audit cycle: - MS Office - MS Windows OS functions. Time changes viewpoint and attitude: - confidence of staff using IT rises, - new generation comes on the stage. …the way towards specific CAATs

6. 6 the daily round general-purpose software customization: – directs to sophistication of analysis and unified reporting; – deepens knowledge of staff; – integrates methodology into IT. Methodological steering and help system secures purposeful application of CAATs and progress of IT in the audit. …the way towards specific CAATs

7. 7 the daily round Corner stones of successful effective and efficient audit: - methodology, - CAATs, - training. Putting these together creates background for dedicated data analysis tools: - IDEA (Interactive Data Extraction and Analysis), - Statistica (data analysis tool) …the way towards specific CAATs

8. 8 today & tomorrow Old information system became out of date to catch up with the development of information technology, Audit process was paper-based, Financial precondition – PHARE project. The project of creation of new Computerized System of Audit Management and Documentation (CSAMD) was born. …the highway of digitalization Reasons:

9. 9 Old IS of the State Control (centralized database) 22. Applicatio n 1. Applicatio n 2. Application 3. Application 4. Application 5. Application 7. Applicatio n 6. Applicatio n 8. Applicatio n 9. Applicatio n 20. Applicatio n 19. Applicatio n 21. Applicatio n 18. Applicatio n 17. Applicatio n 16. Application 15. Applicatio n 14. Application 13. Application 12. Application 11. Applicatio n 10. Application today & tomorrow – the highway of digitalization Reasons

10. 10 IS of the SC Audit administration & working papers State Control activity administration Registration of the correspondence Archive Planning Administration of the Office Quality assurance Inventory registration and accounting Staff administration Library Documentation Registration and statistics of audit results Methodology Database of audit results (audit reports) The place today & tomorrow – the highway of digitalization

11. 11 TeamMate against AutoAudit Project setup Development of CSAMD was incorporated (November, 2005) into the list of the Strategic Risks and owner of the risk was assigned – Deputy Controller General. PricewaterhouseCoopers offered best solution for our new CSAMD and won the tender (September, 2005) today & tomorrow – the highway of digitalization

12. 12 Action Plan was drawn up; it covered: - refinement of audit methodology and incorporating it into TeamMate; - ensuring communication and mutual understanding; - ongoing technical testing of TeamMate; - establishment of support system for the TeamMate users; - training of TeamMate users; - carrying out pilot audits and supervision of them as well as methodological assistance. Project setup today & tomorrow – the highway of digitalization

13. 13 Audit results Audit follow up Audit documentation Quality assurance Methodological guidance Good practice dissemination Risk assessment Audit planning Audit budgeting Methodology - The choice to start TeamShedule TeamRisk TeamStore TeamCentral TeamMate TEC TeamMate EWP today & tomorrow – the highway of digitalization

14. 14 The basis – Financial and Performance audit manuals as well as IS audit guidelines and ISO standard. audit process was structured according its phases: - perf. a. – preliminary study, main audit questions, audit procedures; - fin. a. – audit areas, audit procedures, tasks to be fulfilled; - IS a. – audit areas (if required); audit procedures; tasks to be fulfilled. All audit types in TeamMate were provided with possibility to record all audit administration actions. It was left a possibility for auditors to create their own audit procedures to improve individual audits. Methodology today & tomorrow – the highway of digitalization

15. 15 Transparent work of the Working Group: - All possible documents concerning TeamMate were accessible; - Intranet page dedicated to TeamMate was established; - any question concerning TeamMate follows by answer and explanation; - individual meetings with auditors; - thematic meetings with the groups of auditors. Mutual understanding inside the Working Group. Communication and help system today & tomorrow – the highway of digitalization

16. 16 Three stages of the tests: - General tests; - Language customization tests; - Tests of major updates. Technical tests Ongoing tests carried out by: - the Working Group; - the auditors of pilot audits. today & tomorrow – the highway of digitalization

17. 17 Technical tests today & tomorrow – the highway of digitalization

18. 18 Technical tests today & tomorrow – the highway of digitalization

19. 19 More of pilot audits Review and refinement of the audit libraries Complete training of all staff involved in audit process TeamCentral customization and implementation Thorough analysis of TeamRisk, TeamShedule and TeamMate TEC Preparation of the Audit Subsystem (driven by TeamMate) for recognition as an official electronic documentation system. Plans today & tomorrow – the highway of digitalization

20. 20 To make TeamMate suite easy to use and reliable audit management and dokumentation tool To turn away from the paper documentation system and move to pure digital one Future expectations TeamMate will live as long as audit function be necessary in the world. today & tomorrow – the highway of digitalization

21. 21 Thank You