1. Use of Techniques and Technology in InternalAuditCA Manoj Agarwal October 6, 2012

2. Agenda Role of Internal Audit Use of Technology Techniques in Internal Audit Tools of Internal Audit Q&A 3. DisclaimerAll the contents of the presentation constitute the opinion of the speaker,and the speaker alone; they do not represent the views and opinions ofthe speakers employers, supervisors, nor do they represent the view oforganizations, businesses or institutions the speaker is, or has been apart of. 4. Role of Internal AuditThe Definition of Internal Auditing states the fundamental purpose,nature, and scope of internal auditing.Internal auditing is an independent, objective assurance and consultingactivity designed to add value and improve an organizations operations.It helps an organization accomplish its objectives by bringing asystematic, disciplined approach to evaluate and improve theeffectiveness of risk management, control, and governance processesObjective Assurance ActivityConsulting ActivityControl Assurance Recommendations/Suggestions 5. Use of Technology in Internal AuditWhy ToolsExamplesChallenges To do more with less More coverage More sample (100%) Analytics Early warning Reuse knowledge covert knowledge into wisdom 6. Use of Technology in Internal AuditWhy Tools Examples ChallengesWord processor Making Report, Reusing a old report while making reportPresenter Communicating with Management, Rich ReportingSpreadsheet AnalysisUse as a work paperData extractionData baseAutomating task through Macro. Use of macro forrunning a repeated taskDatabaseAnalysisAudit management systemApplicationsAudit ManagementFraud Detection / PreventionAutomated work papers Internal Control EvaluationContinuous Monitoring/Risk Analysis ManagementContinuous Auditing Exception ReportsControl Self Assessment Dash BoardData Extraction/ Analysis 7. Use of Technology in Internal AuditWhy ToolsExamples Challenges Google alert -Using MacroReal timefor repeatedAlertsaccess to taskpublic info Consolidated ExceptionstandardreportsreportsMonitoring is everywhere Courier tracking, Bank transaction alert, Workflow, Incident tracking 8. Use of Technology in Internal AuditWhyTools Examples Challenges Cost of efforts and time to deploy Cost of Seat license Difficult to maintain and support Poor integration with other systems and tools Poor fit with your requirements Training .. And so on 9. Few reference materialSr. Topic File1 Internal Auditors Negligent in Use of Technology2 2012 State of Technology Use by Auditors3 Internal Auditing Around the World: Profiles of Technology-Enabled Internal Audit Functions at Leading InternationalCompanies, Volume VI4 Adding value internal audit webcast slides 5 16 125 Audit Technology Insights 20126 Internal Audit Technology Survey Results 10. Use of Techniques in Internal AuditSIA 1Planning an Internal AuditSIA 2Basic Principles Governing Internal AuditSIA 3DocumentationSIA 4ReportingSIA 5SamplingSIA 6Analytical ProceduresSIA 7Quality Assurance in Internal AuditSIA 8Terms of Internal Audit EngagementSIA 9Communication with ManagementSIA 10 Internal Audit EvidenceSIA 11 Consideration of Fraud in an Internal AuditSIA 12 Internal Control EvaluationSIA 13 Enterprise Risk ManagementSIA 14 Internal Audit in an Information Technology EnvironmentSIA 15 Knowledge of the Entity and Its EnvironmentSIA 16 Using the Work of an ExpertSIA 17 Consideration of Laws and Regulations in an Internal Audit 11. Use of Techniques in Internal Audit Tracker Soft SkillsTracker ContentsContact ListClient Contact with hierarchy (9)SIA 2 SIA 7Status trackerAgreed scope (8) SIA 9Review NotesSupervision and review (2,7) SIA 11,Requirement Requirements of information, documents, systems, SIA 14,Tracker access, (1,15) SIA 15 SIA 16Checklist Scope (8), Sub area, risks (11,13), controls(12),SIA 17Checkpoints (6, 14,15,17) population, sample (5),exception (5), observations, backup paper (3, 10) EGQuery Sheet Observation (9), Risk (13), Impact, recommendationSamplingPopulation, sample (5,6), Stratification (13, 17)Methodology Dirty sampling (17)ReportFlowchart (3)Observation (9), Risk (13), Impact,recommendation,Positive assurance (12) 12. Use of Techniques in Internal AuditTracker Soft Skills I am not sure whether the data is right as it is throwing too manyexception. I am not able to convey my view point. Do you have any reform which you are not able to push, internal auditingcan help Please confirm the flow chart created by IA. Noting all responsible persons names contact at the beginning Not starting the audit work unless client submit the information/ confirmavailability of information for audit at site. Sending requirement tracker to client every day Communicating queries to client every day. Clubbing observations Ensuring final report is not too long. (benchmark is 7=10 pages) 13. Recap Role of Internal Audit Use of Technology Techniques in Internal Audit Tools of Internal AuditStandards will guide us when our mind is clouded with dark ignorance 14. Q&AManoj Agarwalmanojbagarwal@gmail.com9820392252