2. 43 World Continuous Audit Symposium
Miklos A. Vasarhelyi
KPMG Distinguished Professor of AIS, Rutgers University
Director CarLab
November 1, 2018

3. THE CARLAB (CONTINUOUS AUDIT AND REPORTING LABORATORY)
RUTGERS BUSINESS SCHOOL
THE CARLAB (CONTINUOUS AUDIT AND REPORTING LABORATORY)

4. AIS #1 out of 150 #1 Audit #9 out of 355 #6 out of 370 #14
BRIGHAM YOUNG UNIVERSITY
The Ranking of Rutgers in the Accounting Areas 2017
Areas
Ranking
Ranking
Ranking
AIS
#1 out of 150 #1
Audit
#9 out of 355
#6 out of 370
#14
Financial
#61 out of 397
#76 out of 406
#78
Managerial
#116 out of 300
#85
#74
Tax
#69 out of 129
#57
#71
Other
#21
#40
#23

5. Jimmy Chin
Skiing down the
Everest

6. CarLab

7. CarLab CarLab Analytic Research Client Retention Project Choosing apps
Predictive Analytics with Weather data
Audit data analytics and EDA
Envisaging the future of audit and Big Data
Text Mining
Monitoring
Unibanco’s
branches
Visualization
Process Mining at Gamma Bank
Expert System for P-Card
Logit regression for control risk assessment
Exceptional Exceptions
Client
Retention
Project
Litigation
prediction
Fraud Risk Assessment using EDA
Detecting duplicate records
Continuity equations
Predictive Audit
Credit card
Default
prediction
Insurance
Analytics
Multidimensional clustering for fraud detection
Rule-based selection for transitory accounts
Continuity Equations at HCA
XBRL
XBRL
Insurance
Analytics
Cognitive
Decision Aids
AI: Deep Learning
Robotic Process Automation (RPA)
Intelligent Process Automation (RPA)
Blockchain and Smart contracts
Cluster Analysis of US States

8. Research Team 10 resident faculty + 4 non resident senior fellows
22 PhD Students or recent graduates
4 undergraduate assistants
4 international visiting scholars
One post doc student
A multitude of related resource people
CAR Lab Advisory Board Meeting
4/30/2019

9. The Carlab Active Research Efforts
KPMG projects
AICPA -> Audit data standard
ACL/ AICPA
NFP organization project
Open data efforts
Rutgers Internal Audit ADS / P2P project
Robotic process automation / Intelligent process automation with 3 cpa firms
Teaching course for PCAOB examiners
Contracting RPA course with AICPA
3 other professional instruction initiatives in advanced negotiation (should we do this?)
CAR Lab Advisory Board Meeting
4/30/2019

10. Some questions
Will blockchain and smart contracts allow finally for a continuous audit?
Will the digital ecosystem transform auditing basically into a control / exception system layer?
What will be the time frame for the reduction of auditor manual efforts at the level of disruption of the workforce?
What will be the skill set necessary for the auditor in the next decade?
Where to place research effort in artificial audit intelligence?
What is the role of standard setting?
GASB - RBS Meeting
4/30/2019