Porter Broyles

Computer Aided Audit Tools
Vs
Computer Aided Audit
Tools and Techniques

Protiviti: 2012 Internal Audit Capabilities and Needs Survey

Sampling
Tools
Internal
Marketing
Statistical Analysis
Continuous
Monitoring
Continuous
Audit
Data
Manipulation
Tools
Protiviti: 2012 Internal Audit Capabilities and Needs Survey
CAATS


Tone at the top

Place high priority on leveraging technology to boost performance.

Hire people with the right skills

Train, train, train.
Teammates 2011 Global Technology Survey


The more the top level administrators buy into CAATTS/CA, the easier it is to implement.

Executive level support helps to break down barriers and obstacles that can hinder development.

In exercising due professional care, internal auditors must consider the use of technologybased audit and other data analysis techniques.
(Standard 1220.A2)
Should consider use of CAATTS with every Audit.
(Example: My Quality Assurance Review.)

If it is not required to use CAATTS then there is less likelihood that data analytics will be used even if the department has acquired the software.
2012 Auditnet Survey Report on Data Analysis Software and Auditors

Over the years, there has been discussion on whether everybody in the department should be
CAATTs experts or just a few select people.
IIA has issued guidance on this:
“Internal auditors MUST have sufficient knowledge of … technology-based audit techniques to perform their assigned work. However, not all auditors are expected to have the expertise of an internal auditor whose primary responsibility is information technology auditing.” International Professional
Practices Framework

Cost is the main reason reported by those who have not purchased audit software (75%) with the next highest barrier being staff training.
(2012 Auditnet Survey Report on Data Analysis
Software and Auditors)

Auditnet – 2012 State of Technology Use by Auditors


David Coderre – Not a programmer by training

Porter Broyles – Not a programmer by training

George Hrabak – Not a programmer by training

Paul Picard – Not a programmer by training

Jean Guy-Pitre – Not a programmer by training

Steve (Khashar)– A programmer by training

Ian Craigen – Not a programmer by training

Darius (Jazio) – A programmer by training

2012 Auditnet Survey Report on Data Analysis Software and Auditors


Founded in 1987

Vancouver, BC

Over two-thirds of the Global 500

89% of the Fortune 500

98% of the Fortune 100

All Big 4 accounting firms

Hundreds of national, state and local governments

Over 14,700 organizations in more than 150 countries


Founded in 1988

Toronto Ontario

130 countries

IDEA designed by Canadian Institute of
Chartered Accountants (CICA)

280+ employees plus distributors


Designed by auditors for auditors.

Built in commands/functions for auditors.

Log file for capturing work.

100% data review.

Can load most major data sources.

Read only, can’t change original data sources.


Reading computer fillies

Selecting data

Manipulating data

Sorting data

Summarizing data

Performing calculations

Selecting samples

Printing reports


Very similar tools

Both designed for auditors




Ease of use
Programming language
Audit specific commands/tools
Logging of tests

Both have advantages/disadvantages with each other

Is like arguing over which is better :
Apple or PC
Ford or Chevy
Creamy or Chunky Peanut Butter
Star Wars or Star Trek
You have experts on both sides, but the truth might be somewhere in between.

1)
Houston is an IDEA hotspot
2)
VBA is base language
3)
Several significant upgrades over past few years

1)
More people have ACL experience.
2)
More jobs are looking for ACL experience.
3)
The ACL User Community is extremely strong and willing to help.
4)
More books have been written using ACL than IDEA or other General Audit Tools.
5)
The TexasACL website.


Focus has been on ancillary products




Workpapers
Acerno
Audit Exchange
Importer

No major enhancements from 2003 to 2012


Most improvements have either failed or
Alienated the user core

Microsoft Excel 2013

Advantages




New functions
Autocomplete of pattern recognition
Recommended tables/charts
2 billion record limit

Disadvantages




Fat finger errors
Affects original data
No log
Issues about effeceincy


Grant Brodie

Different direction for company

Broke off in 2003


ACL to the auditors
Arbutus to IT

Do not compete expires on March 1, 2013

Very small staff.


ACL and Arbutus are fully compatible as of
ACL version 7.3

Arbutus has continued to develop the core product.

Core product does a lot of what people buy
AX for.


Enhanced abilities to read/load/export files.


Excel
Linking to data

Enhanced debugging capabilities.


Better colorization
Section walk through

Line by line

Enhance procedure capabilities.

Shared scripts


Lock and protect procedures
Callable subroutines


Intelligent file deletion.

Temporary file prefix.

Variable/Field arrays.

Many new functions/commands .



FORMAT()
Numerous date/time functions
Enhanced REPLACE(), INCLUDE(), EXCLUDE(), SPLIT()


Shared folders.

Reusable print-to-image definitions.

Colorized triggers

“Smart Search”


Not as well known.

Total staff is around 15 people, can they handle sudden growth if ACL customers leave for Arbutus?

Client base is smaller, so has the software been as well tested?


Needs to release new upgrades.



Version 10 in April
Promises for upgrades every 6 months
Upgrades must be successful/non-buggy.

Annual Convention in April

Major threat from Arbutus. (Potential threat from IDEA.)

Likely to lose market share


Potential market share.

Should grow significantly.

Might capture some IDEA users

Big question is Arbutus itself?


Spectator to the Civil War.

Opportunities as companies explore alternatives to ACL?

Potential loss to Arbutus from newer clients who moved to IDEA due to dissatisfaction with ACL.

Could come out ahead or lose ground.

Porter Broyles porter@someclownconsulting.com
www.someclownconsulting.com
www.texasacl.com
281-948-6678