DATE:            March 16, 2000

PRODUCT:    The Auditor’s Guide to Internet Resources, 2nd Edition 

AUTHORS:    Jim Kaplan, CIA

CONTENTS:     

SUMMARY:

Author Jim Kaplan cleverly refers to the Internet as the “AuditBahn” in his latest book, The Auditor’s Guide to Internet Resources, 2nd Edition. Like the real Autobahn with room for drivers of every skill and car - the latest model Mercedes Benz to the old family sedan – Kaplan’s book makes it clear there is room for every auditor to navigate the “AuditBahn” for audit-related material.

Kaplan’s detailed guide of the “AuditBahn” also makes it clear everyone can improve. He shows how to access the Internet, how best to navigate it, where to stop and what to look for, giving readers a greater understanding of the auditing process, and a wealth of new skills and resources for their work.

The author is the internal auditor of the country’s 12th largest school district, Fairfax County Public Schools, and the founder of AuditNet, a Web site for auditors. He is a member of The Institute of Internal Auditors, the National Association of Local Government Auditors, and the Association of Certified Fraud Examiners. He is an enthusiastic crusader for digital literacy for auditors.

The second edition of Internet Resources includes several new elements: interviews with providers of Internet goods and services, more than double the listings of Web resources, new discussion group resources for users of PeopleSoft, Year 2000, RACF, and COBIT, various audit materials such as questionnaires and manuals, sample audit programs, e-mail policies, and a section on digital literacy for internal auditors.

Digital literacy is akin to a driver’s license. Without the proper skills,  it can get pretty frustrating out there on the ‘AuditBahn.’ Kaplan asserts that every internal auditor must be digitally literate in order to “gather information, conduct research, solve professional problems, and network with your peers.”

There are 20 specific things internal auditors can do on the Internet, Kaplan says. Among them are the ability to download audit programs and adapt them to your specific needs, discuss auditing issues with specialists worldwide, find audit manuals and guides from other organizations, earn college credit online or find out about training and certification programs, and locate new job opportunities.

With the reasons to become digitally literate established, Kaplan provides an abundance of material to help auditors connect to the Internet and find Web sites, discussion areas and mailing lists specific to the profession. Kaplan goes into detail about the various types of Internet connections dial-up or direct, and Internet addressing, e-mail, mail lists, and the domain naming system.

The real key to making the Internet useful, however, is learning how to search the hundreds of millions of Web pages, extract relevant information, and assess its validity. Kaplan advises against ‘serendipitous surfing’ because it wastes time and results in little worthwhile information.

Instead, he suggests search methods such as the ‘Sherlock Strategy’ or logical guessing about site addresses; or the search engine strategy, which allows auditors to find pertinent information based on a word or phrase inquiry. There also is a subject-oriented index or directory approach, which allows users to browse and click on the appropriate subject.

The overarching technique to all these methods is what Kaplan calls the professional auditor search strategy, or PASS. With PASS, auditors use ‘critical thinking skills’ to identify the audit issue, develop the search, choose where to search and evaluate the results. Evaluating the results means asking these questions: who posted the information, what is the nature of the information, why is the information posted, when was the information last updated, and how was the information obtained.

Of course, the ‘AuditBahn,’ like the real thing, is full of potholes and interrupted by ongoing construction. Kaplan gives some troubleshooting tips in a chapter he starts with a great quote by actor Humphrey Bogart in Casablanca: “Well, everyone in Casablanca has problems. Yours may work out.” Using Kaplan's advice to deal with the problems - numerical error messages, ‘forbidden’ or ‘connection refused by host’ messages, file not found and server error will help keep the detours to a minimum.

What makes this book come alive are interviews with real auditors who explain why and how they use the Internet in their work. If there are any doubts about the Internet’s usefulness, the quotes and interviews attest to the indispensability of the technology. An example:

‘The Internet has provided me with a network of ‘co-workers’ that has enabled me to expand my knowledge base and ability to serve my clients. Thus, I am able to consult with others in the field. Being able to search government and regulatory sites for up-to-date information has enabled me to familiarize myself with external restraints on clients’ businesses,’ said Earl Hall, coordinator of the Washington Accountant’s Network.

Hall continued: ‘This awareness has helped me alert clients to potential restraints, thereby increasing the value of my services to them.’

The eight in-depth interviews at the end of each chapter with people such as Michael Awad, president of IAD Solutions, Alan McCafferty, founder and president of OPTIMUM Technology, and Harald Will, president of ACL Services Ltd., give more excellent insight into how the digital world affects the auditing process.

Among the questions Kaplan asks is ‘What role do you see for the Internet in the future of internal auditing?’ One answer from Robert D. Randolph, communications/marketing specialist with Arthur Andersen KnowledgeSpace, takes us well into the future:

‘Who knows, the day might not be far off when internal auditors are needed to keep systems and processes controlled in far-off places such as international space stations, giving a whole new meaning to knowledge sharing in cyberspace.’

Another answer to the same question emphasizes how important knowledge management is to internal auditing and supports Kaplan’s crusade for digital literacy:

‘In addition to all the aforementioned issues, the future role of internal auditing must be considered in the context of the emergence of the Knowledge Age where knowledge is an organization’s most important asset and competitive advantage. No organization can afford to ignore evaluations that assess the quality and use of the knowledge that underpins the business,’ said Harald Will, president of ACL Services Ltd.

With its insights, detailed guides to accessing and using the Internet, huge list of Web sites, glossary and useful appendices, this book should be on every auditor’s bookshelf.

Available only to AuditNet subscribers!

ABOUT THE IIA:      Established in 1941, The Institute of Internal Auditors (IIA) is an international professional association with world headquarters in Altamonte Springs, Florida. The IIA has nearly 70,000 members in internal auditing, internal control, IT audit, education, and security. With representation from more than 100 countries, The Institute is the acknowledged leader in certification, education, professional development, research, and technological guidance for the internal auditing profession worldwide.

IIA WEB SITE:        www.theiia.org

The Auditor’s Guide to Internet Resources, 2nd Edition

The book is currently out of print and available only to AuditNet subscribers!