Continuous Auditing Process using
Cross References and Key
Performance Indicators
Washington Lopes da Silva
16th World Continuous Auditing Symposium
Agenda
1.Objective
2.Current Situation
3.Proposed Situation
4.Cross References
5.Key Performance Indicators
6.Conclusion
7.Recommendation
16th World Continuous Auditing Symposium
1
Objectives
16th World Continuous Auditing Symposium
Objectives
• To propose Improvements in the Continuous
Auditing Process
• To reduce the number of false positives
• To facilitate the auditing analysis
• To provide a more intelligent Continuous Auditing
routine
• To monitor the credit risks associated to clients
with total negative balance
16th World Continuous Auditing Symposium
2
Current Situation
16th World Continuous Auditing Symposium
Current Situation
• Data extraction from the legacy systems is processed in the
mainframe environment, using a special software to create
reports (FOCUS)
• It reads the sequential files from the “current account system”
• Exceptions are analyzed, checked and sent by e-mail to the
audited areas who are responsible for finding the proper
solutions
• Exceptions can only be detected 5 days after they happen
• We can only define one parameter to capture the exceptions
16th World Continuous Auditing Symposium
3
Proposed Situation
16th World Continuous Auditing Symposium
Proposed Situation
• Data extraction from the legacy systems is processed in the Data
Warehouse environment, using a new flexible IT architecture
• Creation of a Data Mart with clients credit information
• Creation of a cross reference between clients credit information and
“the current account system”
• Reduction of the number of false positives as well as the time for
auditing analysis
• Detection of exceptions only 1 day after they happen
• Definition of many parameters to make the cross reference and capture
the exceptions
• Creation of Key Performance Indicators
16th World Continuous Auditing Symposium
4
Cross Reference
Parameters
16th World Continuous Auditing Symposium
Cross References
Cross References
Credit System
Renegotiation
System
Behaviour Scoring
System
CLIENT´S NET
BALANCE
Mortgage System
Investment
System
Current Account
System
Cross References
16th World Continuous Auditing Symposium
4
Key Performance
Indicators
16th World Continuous Auditing Symposium
Key Performance Indicators by branch
a) Excess amount
b) The least, average, the highest and total excess amount
c) Excess index / Result
d) Excess index / clean portfolio
e) Excess index / bad debts accrual
f) Excess index monthly growth (amounts and quantities)
g) Excess index / Limit
h) Excess index / Excess total loss (amounts)
i) Excess index / total loss
16th World Continuous Auditing Symposium
5
Conclusion
16th World Continuous Auditing Symposium
Conclusion
The improvements of this new process will impact tremendously the
Continuous Auditing, bringing up:
a) More effectiveness in controlling frauds and financial losses
b) Timeless of auditing analysis
c) Increase in the assertive auditing actions through a more effective
risk mapping
d) More independence to the auditors performance in their analysis
e) Increase in the confidence of auditing data handling
16th World Continuous Auditing Symposium
6
Recommendation
16th World Continuous Auditing Symposium
Recommendation
Continuous Auditing Implementation process
should be spread all over the organization
until reaching all risk areas, as Accounting,
Treasury, Credit, and others where there is a
possibility of no compliance.
16th World Continuous Auditing Symposium
Thank You!
Washington Lopes
Washington.lopes@unibanco.com.br
16th World Continuous Auditing Symposium