2. Emerging Technology Trends – PAIB Focus

3. www.auditimeindia.com Lets look at the need first…

4. www.auditimeindia.com Changed the Controls Changed the Risks Changed the way of doing business What has technology done? Lets Deliberate Understand Technology Impact – For Doing Audits Use Technology - For providing better Assurance Use Technology – For bring better efficiency in our work

5. www.auditimeindia.com Understand the Technology Impact  Domain Experts (PAIB) have to merge with Technology.  Understanding of Technology Risk – for ex.  Clause 49 / Management expects “Effectiveness of Internal Control” – do we understand Cyber Security.  Do we know what controls are ineffective or not configured in core system. (audit of the system itself)  Knowledge upgrade / partnering with - DISA / CISA or related certification professionals.

6. www.auditimeindia.com How do we provide better Assurance? Recent Survey – by American Productivity and Quality Centre (APQC - April 2016)  Survey Need: -  Studied Internal control Violations Vs Automated Primary Controls  Surveyed 70 companies  Examined number of internal control violations per year per 1000 employees.  Survey Result: -  Best performers had 3.51 violations or fewer  Worst performers were dealing with 34.23 violations or more For a 10,000 employee company in bottom quartile, that’s more than 340 controls violations annually.

7. www.auditimeindia.com Survey Result – by APQC (April 2016) How are top Quartile companies keeping violations down?  Automation of Primary controls  Top Quartile – automated at least 50%  Bottom Quartile – only 11.54% or fewer

8. www.auditimeindia.com How do we provide better Assurance? Adoption of CAAT Tools.  Move out of Sampling base to 100% verification  Do Continuous Monitoring Vs Discrete one time monitoring.  Analyze exceptions close to real time.  Connect Multiple system to deliver results. Advantage of CAAT Tools.  More objective results. – Strengthen Auditors opinion  Early Exception handling & Resolution – Value to Business user.  Easy & repeatable – Value for technology.

9. www.auditimeindia.com Entities Organization Structure Audit Planning and Calendar RCM Library Process Grid Define / Rate Unmitigated (Inherent Risk) Complete the Workplan steps Complete the Tests Evaluate Controls Complete Reviews Add Findings Severity Risk Add Findings Severity Risk Management Responses Assign Action Plans Record Out comes Track by Due Dates Close Audit with Reviews Generate Report Automation Close Pending Points Audit Sign-off Audit End PLANNING EXECUTION FINDINGS REPORTING Lets look Audit Process How do we bring better efficiency?

10. www.auditimeindia.com How do we bring better efficiency? Adoption of Audit and Work Paper Management System  Automate of your entire audit process.  Manage any work paper in system.  Analyze and monitor Audit status on the fly.  Generate various reports and MIS Advantage of Audit Management systems.  Efficiency by savings in time. Effectiveness by providing better MIS to management and Audit committee  Assist in Peer Reviews – full work paper available.  Succession planning & Knowledge Management.

11. www.auditimeindia.com Sampling Domain Manual Audit / work paper management Technology with Domain 100% Automated Knowledge Mgmt & Repository Knowledge upgrade DISA/ CISA etc. CAAT Tools Audit Management System Traditional New Generation Technology Trends Summary – Emerging Technology Trends

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