e-Tools for Auditors

November 2011

Audit Reporting: The Power of Words

The AuditNet Newsletter is sponsored by:

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Thomson Reuters

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CCH TeamMate is a database-driven audit management system that streamlines the audit process by providing integrated tools for documentation, report generation and file sharing.

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ACL Recorded Webinar: The ABC’s of Value-Add Auditing

Learn how the high-performing global internal audit department at Campbell’s Soup Company is driving efficiency and improving operational excellence across the organization. Watch now!

http://www.acl.com/value_add_audit/default.aspx?mtcPromotion=17365

Read The Connected Roles of Internal Audit and Compliance, for a look at how compliance and internal audit intersect in the new world of connected GRC. Explore how these roles remain separate and where they share responsibilities? Examine how they can work together and leverage one another to drive business value. Download today!

http://accelus.thomsonreuters.com/content/connected-roles-internal-audit-and-compliance-701e00000004sel

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ABOUT TRUST ONLINE

SAS 70s: Background the Reason for Change

By Connie Spinelli, GRC Solutions

In the world of SAS 70s, a number of new report options now exist. In principal, these report options have not created much of anything new. However, having three report options alleviates the problem service organizations and external auditors have had for years: getting a report that fits the organization.

Click here the rest of the article!

This article was contributed by Protiviti KnowledgeLeader, an online service providing tools, templates, and other resources for internal audit and risk management. Free trials available at www.knowledgeleader.com.

Data Analytics for Auditors Webinar Training
November 2011 Webinars

Starting Up ACL Software™, Running Over 100 Reports Instantly, and Using the Latest Best Practices $89 click here for details November 2, 2011

Maximizing Microsoft Excel 2007 / 2010™ as a Data Analysis Audit Tool (3 Topics) $89 click here for details

November 16, 2011

Special Offer

AuditNet^® Community

Sponsor News!

Thanks to ACL, CCH TeamMate and ThomsonReuters for sponsoring the newsletter!

AUDITNET® AND AUDITSOFTWARE.NET JOIN FORCES TO CREATE A NEW AUDIT SOFTWARE PORTAL

OAKTON, VA, OCTOBER 1, 2011: AuditNet® and Cash Recovery Partners (AuditSoftware.net) today signed a Memorandum of Agreement to collaborate and create, promote and market a Website portal with the AuditNet® branding that will provide audit software training, resource links, and tools for audit software including Computer Assisted Audit Tools and Techniques (CAATTs), data analysis, continuous auditing/monitoring, collaboration software, audit management, fraud detection, as well as other applications that would fall under the general category of audit software.

To read the full press release click here!

Technology and Auditing

CAATT Tales

Welcome to CAATT Tales a new feature column that focuses on computer assisted audit tools and techniques (CAATTs) to increase audit efficiency and effectiveness. Donald E Sparks, CIA, CISA, ARM and Vice President Industry Relations for Audimation Services, Inc. suggested a column titled Moving Forward with Data Analysis Q&A to provide a forum for readers to submit questions about how to best conduct internal auditing related data analysis activities. AuditNet renamed the column to CAATT Tales and expanded the scope to include all uses of technology to enhance audit efficiency and effectiveness. Audimation Services Inc., a Houston TX based company owned and operated by its co-founder, Carolyn Newman, is the sole U.S. distributor of IDEA, CaseWare™ Monitor and SmartExporter for SAP

Data Mining with IDEA

By Don Sparks, CIA, CISA, ARM

Audimation Services, Inc.

Experts in Data Analysis

What built-in data mining features are included in IDEA? One of the best features often overlooked by users is the Field Statistics function.

Data mining is a term used frequently by auditors that can be a tough term to define as many auditors do not make a distinction between data analysis and data mining, i.e., they see the terms as one and the same. I use the term data analysis when I am referring to managing data to effectively and efficiently conduct routine audit program objectives. Examples are importing troublesome file formats like print and pdf files, joining or appending files, sampling, stratification, gap detection, duplicate detection, pivot tables, Benford’s Law, search features, and many more.

For the rest of the article click here!

Organizational Internal Controls for Social Media

by Jim Kaplan CIA CFE

(This article was written for Protiviti KnowledgeLeader and appeared April 11, 2011)

As online social media continue to gain mainstream acceptance, traditional face-to-face contact is taking a back seat as the networking method of choice. Facebook, Twitter and LinkedIn are gradually changing the protocol of how businesses and professionals operate.

In the past, for someone to do the bulk of their communication online would have been unusual, whereas now that is the norm. Everyone is e-mailing, blogging, using wikis or all of the above to give their business a boost. It is a paradigm shift that has brought with it new demands on building an internal control environment that specifically addresses the social media process.

For the rest of the story click here!

See the summary results of our survey

Social Media Risk Control & Audit Survey Summary Results

Social Media Risk Control and Audit

The Auditor's Role

Surveys have shown that increasing numbers of corporate employees are using social networking sites in the office. Many view this as a good thing as social media is a powerful tool for collaboration, and employees searching for answers to work-related questions often rely on networking tools. But many managers and employees do not recognize the organizational risk exposures posed by these tools.

I have written several articles on this topic and one is included in this newsletter. But in order to assess the impact this phenomenon is having on auditors I felt that the timing is right for a survey.

This survey is now closed and summary results can be accessed now. We will follow up with a complete report and conclusions.

Social Media Risk Control & Audit Survey Summary Results

AUDITNET® SURVEYS

The AuditNet® survey of the impact that technology has had and continues to have on internal audit is in final draft and will be released by the end of the week. We are looking for maximum participation for this survey. In order to provide an incentive we will be giving away a 1 year subscription to AuditNet to one lucky auditor!

We are also developing surveys for the following topics. If you have an area that you feel would add value please share it with us.

Risk Control and Audit of Mobile Devices

Flowchart Best Practices for Internal Audit

Best Practices in Acquiring and Importing Data

Audit Software Capabilities Survey

AuditNet Past Surveys

AuditNet® conducts periodic user surveys based on relevant or hot topics as well as areas suggested by our users. Click here for a list of the surveys that we have completed.

If you have an idea for a survey or would like us to conduct a survey for a particular subject send us an email. We are particularly interested in surveys that explore the use of technology for auditors.

What's Happening Next Month?

The theme of this month's newsletter is Continuous Auditing and Monitoring and you will find articles and links to resources focused on that subject. Next month's theme is Audit Reporting: The Power of Words. If you have an article or resource on the theme please send it along to the editor.

Jim Kaplan, founder of AuditNet will be speaking at the CCH TeamMate User Forum in Orlando (October 2-5, 2011). I look forward to meeting TeamMate Users at this event.

Need CPE? Sign Up now for the this month's Webinars by clicking here!

Remember! Clicking on sponsored ads and visiting their sites helps support AuditNet®.

AuditNet^® Communication Skills

Now Available on Kindle

Latest Edition Job Loss

Words That Comfort

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Continuous Monitoring and Auditing: Auditor's Roles

If there is one area that we have exceled at it is finding the best audit resources for auditors. It would be impossible for me to list all the available resources on this topic as it is a hot issue.

AuditNet has a large number of audit programs, checklists, matrices and more on this particular topic. We also are working with AuditSoftware.net under an agreement to develop audit programs, articles, guides, training and more on all things relating to audit software. Continuous monitoring and auditing as well as cost recovery strategies will be part of this new portal!

If are interested in the best methods of researching for audit topics or to have AuditNet present at your meeting or conference then just send us an email.

Update on AuditNet® Networking and Information

AuditNet® has established new networking opportunities for auditors through social networking sites such as LinkedIn, Google Groups, Yahoo Groups and more. LinkedIn's Professional Audit Information Network has over 4,800 members. What a great tool which includes group discussions, news and the opportunity to network with other professionals around the world!

AuditNet continues building the library of resources with new audit programs, monographs, fraud analytics into audit work programs and more to provide auditors with a new tools for compliance with the standards. We are working on a monograph on Building Fraud Detection into the Audit Process.

New audit programs are also now available. Subscribers may access these documents now.

AuditNet articles will now include the ability to provide feedback and comments. We are looking at a way to rate audit programs as well. Stay tuned!

AuditNet is working on several fronts to enhance the audit programs and incorporate audit content into other software applications. One of these applications will begin offering Software as a Service (SaaS) solutions to requirement management. AuditNet has always supported new solutions and has encouraged start ups and other software vendors to enhance their products for both the mainstream as well as the small internal audit functions. We will continue to seek out opportunities that offer the global audit community new ways of doing business.

Benefits of Registration

AuditNet continues to forge new relationships with software vendors, professional associations, and audit and accounting sites to provide auditors with access to audit work programs.

Group Access to AuditNet Audit Programs.

Join the other groups such as ACL, CCH TeamMate, Protiviti KnowledgeLeader and the Association of Healthcare Internal Auditors that have access to all of the AuditNet audit programs.

If you want your group or professional association (IIA, ISACA, ACFE, ACUA, ACUIA etc) to have transparent access to AuditNet audit programs and other content as a benefit of membership contact your professional association official or group leader and ask them to pursue this with AuditNet.

Fraud News Feed

Go to the AuditNet Fraud Resource Center and check out the fraud news feed to keep up to date with media reported fraud happenings.

The best way to find all the resources on the site is by going to the AuditNet Library or use the site search.

Courage is Part of the Fraud Examiner's Job Description

An Interview with Prof. John C. Coffee Jr., 2011 ACFE Cressey Award Recipient

By Dick Carozza

"For fraud examiners, courage is part of the job description," said John C. Coffee Jr., Adolf A. Berle Professor Law at Columbia Law School, recipient of the ACFE's 2011 Cressey Award, during a recent Fraud Magazine interview. "Remember that at WorldCom it was the internal auditors who caught the fraud and brought it to the board's attention when the outside auditors missed it."

For the rest of the article from the latest ACFE Fraud Magazine click here.

This article is from Fraud Magazine, the professional magazine of the Association of Certified Fraud Examiners and is a regular feature of AuditNet under a new cooperative relationships and partnership with professional associations in the interest of sharing resources for the benefit of the global AuditNet® community. .

ACFE FraudInfo Newsletter click here!

Coming Attractions!

AuditNet Begins Creating an inventory clearinghouse of Standard Audit Condition Statements (SACS).

AuditNet is building a library of standard audit conditions (comments/observations/findings). Similar to the audit programs inventory this will create a clearinghouse of well written findings to jump start development of audit findings. You will still need to add the other elements such as criteria, cause and effect however we have observed over the years that many conditions repeat themselves.

Why recreate the wheel if someone has already crafted a well written condition statement?

AuditNet® is working on an audit program development service. If we don’t have an audit program in our inventory that meets your needs we will develop a program if you can provide the type of program you need, along with the objectives, purpose and scope. This will be a fee based service. Stay tuned for the roll out of this innovative new program.

We have chosen a firm for the AuditNet® site redesign. The prototype for the site redesign is available at http://auditnet.workpapers.com In conjunction with the redesign project we have begun classifying the audit programs by category. This is an important step in creating a database for subscriber access using search capabilities. As part of the integration we will utilize techniques to capture download by program as well as rating criteria to highlight which programs subscribers find most useful. We expect to role out the redesign in the fourth quarter of 2011.

Based on the success of our first free Webinar we are exploring opportunities for additional topics for the remainder of 2011. We will offer free CPE for future events utilizing quality presenters. Stay tuned for announcements and promotions!

The AuditNet Social Media - Risk, Control and Audit Survey 2011 is closed and thanks to the 167 auditors who responded. The summary results are now available and we will be issuing a report on the survey next month.

We are working on surveys for cloud computing, mobile devices and flowchart software and the impact of technology on internal audit then and now. We will be launching these surveys later this year.

AuditNet continues working with professional associations to provide access to the audit program inventory. If your professional association is not providing their members with access to AuditNet® then they are missing a great opportunity. Let your association know that access to AuditNet® would be a value added benefit they could provide to members!

The AuditNet Monograph Series provides useful guides for all levels of auditors from juniors right up to audit directors. We are currently working on new guides covering audit basics as well as emerging technologies. These guides will be available to registered subscribers. If you are interested in developing a monograph on a contract basis, contact us.

AuditNet® continues adding new specialized resources for auditors. Watch the newsletter and keep checking the Library page for updates and new resources.

Recovery Auditing: Reducing Profit Leaks

Auditing With Excel Free Offer for AuditNet Users

Charlie Walker, the developer of TopCAATs provides you with 101 ways to automate your auditing and save 20 hours a month. In an exclusive offer to AuditNet members the e-book is available for free download. The book includes details on using Excel™ audit tests for inventory, payables, receivables, payroll, cash, non-current assets and more.

For details click on the graphic above or here!

AuditNet® Featured Books and Reviews

The AuditNet^® Audit Bookstore Corner

Looking for books on auditing related topics? We suggest using the AuditNet^® bookstore. The bookstore focuses on Internal Audit but includes other related subjects as well. AuditNet^®uses Amazon to power the bookstore so each purchase you make through this link helps support AuditNet^®.

Do You Kindle? Get yours today!

Ask Me About the iPad!

More auditors are using them

AuditNet^® Data Analysis Corner

Pleier Corporation has partnered with AuditNet® and FraudAware® to publish “Data Mining for Payroll Fraud” webinar on CD-ROM click for details. This is the first publication of a “Data Mining for Fraud Series”.

A very popular joint AuditNet(R) and Fraudaware(R) Webinar of 1 hour and 42 minutes of video recorded live and distributed on CD-ROM.

Here are some of the benefits of this type data mining and analysis:

- Reduce control weaknesses before fraud escalates
- Determine cost impact of fraud
- Analyze complete data sets for fraud
- Efficient and cost-effective ability to automate for continuous monitoring/auditing
- Uncover specific fraud scenarios and schemes

By attending you will receive expert guidance on:

- Costliest forms of internal and external payroll fraud
- Who commits payroll fraud
- Gathering accurate data for effective payroll fraud data analysis
- Powerful and user-friendly audit automation tests and techniques
- Using data analytics results to improve payroll fraud preventative controls
- Using meta-data and cross-referencing to produce better results
- Tools, Techniques and Tips of Data Mining Success
- Much MORE

AuditNet^®Vendor News

Check here for the latest news from our AuditNet^®

Release the Writer in You!
Looking to Earn Some Extra $$?

AuditNet is interested in hiring experienced auditors to create content for our subscribers. If you are interested in writing audit programs, ICQs, questionnaires, or control matrices on a work for hire basis please contact me. If you may know of anyone who would be interested in this as well please pass along our contact information.

Top 10 Challenges for Internal Audit in 2012?

Last year's blog post identified the top 10 challenges facing auditors but it is now time to update the list to cover any changes! Here is what I came up with but feel free to comment or add your own issues to this list.

Social Media Risk Control and Audit

Technology Based Audit and Other Data Analysis Techniques

Risk Centric Orientation Assessing Risk – Internal Audit’s Role

Standards Compliance - IPPF Standards and Quality Assurance

Regulatory Compliance

Mobile Device Risk, Control and Audit (Wireless and Tablet Devices)

Forensics and Fraud Risk Assessment

Continuous monitoring - Audit's role

Integrated Auditor Model

Communicating with the Board and Governance

Other issues could be

Finding qualified individuals

Certification and the role it plays

Training - especially in the area of IT and new requirements such as IFRS

I am sure you have seen "hot topics" in your industry or organization.

Let's share and perhaps we can identify resources to meet those needs. I will use the results to set the themes for next year's (2012) AuditNet editorial calendar! Send yours to auditnet@gmail.com

Kindle - Get Yours Today!

Data Analysis to the Rescue: Mileage-Rental Arbitrage

Responding to a fraud hotline whistleblower tip on T&E fraud…

By Andrew Monroe, ACDA

The Case

The call came into the compliance hotline alleging that a person was making profit on rental cars through the expense reimbursement system. How could anyone do that? The only way to get money from the expense system is to turn in receipts. If they have a receipt for a rental car, then a person just gets reimbursed. Other than collusion with a rental car company, I could not imagine how this was possible.

For the rest of the story click here!

Anti-Fraud Webinars

Timely Webinars Offered This Month: Investigating Fraud
November 15, 2011 (1.5 CPE) $75

Techniques for Supporting Fraud Litigation November 21, 2011 (1.5 CPE) $75
Special Offer Sign up for both for only $135

Investigating Fraud – The Critical Role of Auditors, Accountants, Compliance Officers and HR November 15, 2011 $75

Techniques for Supporting Fraud Litigation November 21, 2011 $75

The November 2011 Anti-Fraud Webinars will cover Investigating Fraud – The Critical Role of Auditors, Accountants, Compliance Officers and HR and Techniques for Supporting Fraud Litigation. These Webinars are priced at $75 each and offer 1.5 hours CPE per Webinar. For a limited time you can sign up for both Webinars for $135. In addition to the special pricing you will receive other VALUABLE BONUS ANTI-FRAUD RESOURCES when you attend the events.

For more information on this offer click here!

Missed any of our Webinars? You can now purchase the recorded events and slides..

Attribute Sampling Update

by Mike Blakely

Attribute sampling is widely used by auditors in tests of compliance. Generally, audit samples are used to test the adequacy of internal controls. An audit sample results in a sample error rate which can then be used to estimate a range of probable errors in the population being tested. This range is known as a confidence interval because the auditor has some degree of confidence that the overall error rate will be within this interval or range. Based on whether or not the range is acceptable, the auditor may decide to perform other audit tests.

Click here for the rest of the story!

Previous Articles from Mike Blakely:

Give Your Stat Sample the Boot Part 1

Give Your Stat Sample the Boot Part 2

AuditNet® Exclusive

Online course - Fraud detection using analytics

This is a case study regarding a fictitious mail order company where an allegation of fraud has been received. A SAS 99 brainstorming session was held, and 11 critical expectations were developed during that brain storming session. This is a hands on course. All data and software needed are provided. The case study can generally be completed in less than four hours.

Objectives

Learn how to use and apply key analytic procedures to detect fraud.

Pre-requisites

Internet browser (Internet Explorer, FireFox, Opera, Chrome). Most tablets and mobile devices with Internet browsers should also work.

Cost None.

CPE Not available.

Length Course takes approximately four hours to complete.

Registration Not required, but must be completed if e-mail support is needed or quizzes are to be taken.

Getting started Click on course link , select the course "Fraud detection using analytics" click "Login as a guest".

Questions or additional info Mike.Blakley@ezrstats.com

Optional registration E-mail contact info to address above. You will receive an id and password within 24 hours. Registered participants can receive e-mail support, post on the forum and take quizzes.

AuditNet® Free CAATTs Webinar Was a Success!

CAATs are tools specifically created to help Auditors – they are extremely useful and the benefits are well known, yet there are still many audit departments not using them.

Watch for future free Webinar events offering value added topics for your audit department and staff!

Click here for the link to the recording!

Interested in Writing for AuditNet?

Looking for a Few Good Writers

Writing audit reports are very challenging for most auditors. A great way to hone your writing skills is by moving outside the box! Consider writing an article for AuditNet based on your experiences as an auditors. We are always looking for practical how-to articles on all aspects of the audit process. If you are an IIA member this is also a great way to earn CAP points for your local chapter. Send your articles to editor@auditnet.org TODAY!

AuditNet Editorial Guidelines

Based on the number of articles being contributed to AuditNet we have developed editorial guidelines for future submissions. If you are planning to write an article please review the guidelines before submission. We appreciate receiving material from the global audit community in the interest of sharing knowledge. We are also in the process of guidelines for book reviews and other material submitted for inclusion on AuditNet.

Conference News

Internal Auditing and Fraud

AuditNet® Plans More e-Monographs on Fraud Topics

AuditNet® is moving forward with e-Monographs on fraud and other related topics that will be added to the subscriber accessible documents over the next 6 months. The planned documents will provide a foundation for a comprehensive fraud risk assessment in conjunction with internal audit requirements for detecting and preventing fraud.

We have been adding at least 10 new resources each month to the subscriber material. Much of this is focused on fraud and forensics. Don't miss out on all the old and new material available to subscribers.

Additionally new monographs are in process for other areas of audit operations including Key Performance Indicators for Internal Audit, Business and Transaction Cycles and Digital Audit Knowledge Resource Guide. If you would like to submit a proposal for a topic please send it to auditnet @ gmail.com

AuditNet^® Fraud Auditing Corner

Fraud News

Need to keep up with fraud news and happenings? There are several options available. One is to subscribe to the free ACFE FraudInfo E-newsletter.

Another free resource is the Auditing & Fraud News. Service for research professionals. Constantly updated news and information about Business & Companies. Go to FraudNet and click on the link Click Here for Fraud News.

Anti-Fraud Library

AuditNet is developing a Fraud Audit Library (FAL) of resources for auditors. The FAL will be available to subscribers (Premium Level) and will consist of documents providing fraud scenarios, red flags and audit procedures as well as fraud policies, Webinars, PowerPoint presentation, guides and more. Following are some of the e-monographs we are planning:

Common Financial Fraud Schemes
Construction Industry Fraud
Detecting Financial Statement Fraud
Guide to Implementing Fraud Hotlines
Guide to Preventing and Detecting Fraud Using Data Mining
Guide to Anti-Fraud and Fraud Awareness Programs
Guide to Developing an Organizational Fraud Policy
Guide to Detecting and Preventing Worker's Compensation Fraud
Healthcare Fraud
P-Card Fraud
Payroll Fraud
Red Flags of Fraud

If you would like to participate in sharing your resources for this section of AuditNet let us know and you will be provided with a Premium subscription.

More Webcasts and Webinars for Auditors

Risk Management from Strategy to Success: ERM and the Auditors Role AuditNet and Fulcrumway Feb. 23, 2010.

Risk Management and the Financial Crisis – What Audit Has Learned and How Technology Can Help (Webinar Replay)

Fraud Detection and Prevention: Protecting Your Assets, Your Integrity and Your Future (Webinar Replay)

What's New at AuditNet®

The Latest Resources and Tools from AuditNet®

November 1, 2011 (Oakton, Virginia) AuditNet Begins Creating an inventory clearinghouse of Standard Audit Condition Statements (SACS).

October 1, 2011 (Oakton, Virginia) AuditNet® and AuditSoftware.net join forces to create an audit software portal. The first offering for this new relationship will be Web based training for data analytics. The site redesign is under way!

September 1, 2011 (Oakton, Virginia) We signed the agreement and the site redesign project will begin. AuditNet® is also getting ready to launch a fee-based audit program development service that will provide auditors with an opportunity to submit requests for audit programs not currently in the inventory. We will have a team of SME's that will develop the program based on the type of program, objectives, purpose and scope.

Registrations using Hotmail or Yahoo no longer allowed for free trials
AuditNet® will no longer accept registrations for the free 30 day trial from Hotmail and Yahoo domains. Due to the number of duplicate (multiple) or phony registrations from these domains AuditNet will no longer activate these accounts. Registrations from Hotmail and Yahoo domains will only be allowed for premium or group subscriptions. If you have no other email available then you will need to send us a request to authorize a registration from these domains.

August 1, 2011 (Oakton, Virginia) The classification project was completed and will provide auditors using AuditNet® a much improved experience. We are also crossing the t's and dotting the i's for the site redesign. We are projecting that the new site will be launched in the 4th quarter of 2011. We are working on vendor sponsored Webinars that will provide our community with value added information along with free CPE. Stay tuned!

July 1, 2011 (Oakton, Virginia) Our classification project is moving forward in preparation for the site redesign. We will start using the classification structure for categorizing and preparing for new additions to the resources. The social media survey is still open and we look forward to your participation. We are developing new surveys for audit and flowcharts, cloud computing risk, control and audit, mobile technology risk, control and audit and other advanced technologies. We launched a new column called CAATT Tales which will feature articles on technology and audit.

Prior What's New at AuditNet!

Audit Work Programs Corner

30 Day Trial

Access to audit programs requires registration. You are allowed only 1 free trial so make it count. The trial provides 30 day access to the basic section. Access to the premium section requires a subscription. We add new programs each month. They are available on a 1 for 1 exchange for an original audit work program not currently in the inventory. If you unable to share audit programs then consider subscribing to the premium content which provides you with access 24/7/365. Interested in a subscription in lieu of cash? (Offer only available for new programs submitted).

AuditNet® recognizes the above partners that provide their members and clients access to all the AuditNet audit programs. CCH TeamStores format. Access through the TeamStores support site. ACL Premium and Protiviti KnowledgeLeader members access through the respective members login.

E-Book for Subscribers to the Annual Audit Programs

AuditNet is building Analytic Enabled Audit Programs (AEP) which include steps for using data analysis software such as ACL. If you have a program that uses data analytics and would like to share we will add it to this new category.

AuditNet® Guide to Cyber Security Assessment ICS Best Practices (Nov 2011)
AuditNet® Auditor’s Guide to Secure E-Mail Encryption (Nov 2011)
AuditNet® Checklist for Protecting and Enforcing your Intellectual Property Rights in the U.S. and Abroad (Nov 2011
Business Continuity Planning - A Diagnostic Tool (Nov 2011)
Inventory Fixed Assets Fraud Audit Detection (Nov 2011)
Intellectual Property Protection and Audit (Nov 2011)
Healthcare Fraud Prevention Detection Red Flags (Nov 2011)
Guide to Sarbanes-Oxley, Whistleblowers & the False Claims Act (Nov 2011)
Guidelines for Validation Testing Templates (Nov 2011)
HIPAA Solved: A Secure Email Solution (Nov 2011)

Coming Soon

Audit Program (Government) with Remediation WS (Dec 2011)
Business Continuity and IT Recovery Plan (Dec 2011)
Compliance Educational Institutions (Dec 2011)
Contract Assessments (Dec 2011)
Guide to Flowcharting (Jan 2012)
Global Risk Evaluations (Dec 2011)
Health & Safety Assessment Matrix (Jan 2012)
Information Security Governance Assessment tool (Feb 2012)
Network Patch Management-Gov (Feb 2012)
Network Security Management Workbook with Presentation (Feb 2012)

Monographs and Guides

AuditNet® Flowcharting Guide 2012 (Jan 2012)
Security Assessment RFP Template (Feb 2012)

Ask the Auditor

Each month I select one question submitted to Ask the Auditor and provide an answer using the same digital tools and techniques that I recommend to all auditors.

SOX Key Control Certifications

Q; Our Audit Committee is looking for reductions in the overall Audit plan and is considering removal of quarterly (and perhaps even annual) key control certification by management. It seems to me that key control certifications were at one time a best practice in SOX Auditing programs. Is this a prudent decision in the audit world today?

A: We received several responses to this question. They are provided here:

From Norm: The answer will depend to some extent on whether there is reliance on the self-assessment (sub-certification) for any key controls. It may be relied upon for selected entity-level controls, with the certification including language related to understanding the code of ethics, for example.

If there is no specific reliance, then management could drop the activity. But, it is highly unlikely to have much affect on the cost of the SOX program!

I would not make a decision based on whether it is 'best practice', but whether it affects the level of evidence obtained relative to the operation of key controls. Certainly, it does indicate a level of commitment to internal control and most CEOs in my experience like it because it shares some of the signing responsibility.

From Catherine: I am not sure how our auditors would react to such a change. We consider our certifications as an entity level control. However, we have revised our internal control environment over the years and have been able to change key controls to non-key controls. In order to do this, we address the financial risk factors. So, is there any risk to the organization if the quarterly certification by management is removed and how would you rate it (low, medium, high)?

If you want to chime in on this then please do.

For more tips go to Ask the Auditor Forum for How Do I...

Submit a question for Ask the Auditor!

Couldn't Make the Webinar on Detecting, Preventing and Auditing Payroll Fraud Using Data Analysis?

No problem - you can purchase last year's Webinar on CD from Pleier

AuditNet® and FraudAware Release Data Mining Training on CD

Our highly successful Data Mining for Payroll Fraud Webinar is now available on CD at Pleier Corporation (our publisher's web site) for $125. To order click here!

FREE PUBLICATION

Receive Your Complimentary Report NOW!

Free Guide: How to Pass an IT Audit - Learn how one security analyst from a Fortune 500 company, used a GRC tool to automate management of IT controls, verify compliance with policy, and document everything for auditors.

Request the Free White Paper Here: http://bit.ly/HowToPassITAudit

Training on CD From Joe Pleier

Our highly successful Data Mining for Payroll Fraud Webinar is now available on CD at Pleier Corporation (our publisher's web site) for $125. To order click here!

As a reminder, Pleier Corporation offers 10 % discounts to AuditNet readers at www.pleier.com. To take this discount order online and enter the word AUDITNET in the coupon field at checkout.