1. External auditors’ perspective
Continuous Auditing –
External auditors’ perspective
(Panel Discussion)
Thomas Lilienbecker Partner, KPMG GSC Continuous Auditing and Reporting Symposium, Rutgers Business School November 3, 2006

2. Where do we stand? Controls evaluation testing the settings
testing transactions
supported by tools like Approva and KOLA
Substantive testing
routines similar to current CAATs routines performed with IDEA or ACL
analytical procedures (in the sense of setting expectations and evaluating deviations)

3. Three problem areas Evaluation methods Creating routines
Getting the data
Creating routines
Evaluation methods

4. Getting the data Technical Server on client’s site
Download from client’s systems
Mirroring
...
Logical
Common data model
Map to ERP systems
Scripts to get the data from the ERP system

5. Creating the procedures and routines
Controls testing
Set-up
Transactions
Analytical procedures
Regression analysis
Continued equations
Test of details
CAATs routines
Journal entry testing
Data matching

6. Evaluating the results
Scoring systems
Hierarchic procedures
Sampling the exceptions
Statistically / probability theory based

7. Questions the profession has to deal with
What type of audit evidence do/can we get from CA techniques?
How can the level of audit evidence from CA be compared to that of normal procedures?
How to integrate CA into annual audits?
How should procedures be combined?
If data analysis is widely used, what changes are needed to the audit standards?

8. Step-by-step Encourage the use of CAATs
Develop more intelligent routines
Look for procedures that can be automated
Develop automated evaluation methods
Overcome the obstacles when getting the data
technical
psychological
legal

9. Presenter’s contact details Dr. Thomas Lilienbecker
Partner, KPMG Global Services Centre
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