1. Continuous Auditing

2. Items to be discussed include: Developing a Continuous Auditing Program Continuous Auditing Process Benefits of Continuous Auditing Continuous Audit Area Examples

3. Developing a Continuous Auditing Program

4. Level of Commitment and Effort Management/Board Support Should be a specific line item on your audit plan This is not a one time project, but rather ongoing each year Do you have the resources available to implement and sustain this program?

5. Selection of Automated Tool Which tools are available? (i.e. ACL, IDEA, Access, SQL, etc.) Are the funds available to purchase data analysis software, provide staff training, and annual maintenance support? Do your research!

6. Technical Constraints Disk space constraints Direct access to databases (possible security concerns) Dedicated platform for continuous audit testing (improves performance)

7. Staff Technical Proficiency and Knowledge Does your staff have working knowledge of the processes of your organization? Will you have to provide training to your staff on using the selected automated tool? How well does your staff adapt to change?

8. Building Efficiency into the Continuous Auditing Process Maintain balance in your continuous auditing program As much as possible integrate with your normal audit process Where possible completely automate testing (no manual intervention) Strive to increase your “actual issue to testing script results” ratio to move closer towards 1.00 (minimize false ‘hits’)

9. Continuous Auditing Process

10. Identification & Review of Results Documentation & Reporting Testing Development & Enhancement Continuous Auditing Process

11. All testing should be developed using automated scripts Master list of continuous auditing ideas maintained and updated throughout the year Automated testing scripts are developed during the normal audit process that can be integrated into the continuous auditing process Testing Development

12. Identified as part of the review process after results are validated Reduces wasted time that may occur with reviewing false results Helps to evolve and mature your continuous auditing program Testing Enhancement

13. Automated testing scripts are run on varying cycles (i.e. semi-monthly, monthly, quarterly, annually, daily, etc) Results identified should be reviewed shortly after automated tests are performed The time devoted to the review process should reduce over time as familiarity with the data and process increases and additional enhancements are added, as necessary Identification & Review of Results

14. The method of documentation and reporting vary depending on the criticality of the issue identified An engagement may be initiated based on issues identified during the continuous auditing process As any item is identified in the process, these items are discussed and addressed by management Documentation & Reporting

15. Benefits of Continuous Auditing

16. 100% review of transactions for anomalies (no sampling) Real time results Greater audit coverage Audit efficiency Best way to develop knowledge about business processes Continuous Auditing Benefits

17. Continuous Auditing Areas

18. Accounts Payable Payroll Purchasing Items that can be covered during every audit include: data anomalies and process inefficiencies Industry specific areas (i.e. healthcare, manufacturing, government, etc.) Continuous Auditing Areas

19. Automated Tools Demonstration

20. Any questions, comments, success stories?