This document discusses electronic working papers (EWP) for auditing. It notes that EWP can automate the entire audit process, including risk evaluation, planning, working methods, and storage of evidence. When selecting EWP software, auditors should consider which audit functions to automate and ensure a good fit with their current audit practices and technical environment. The implementation process requires effort to tailor the software to the auditor's needs, train staff, and establish standards. Benefits of EWP include potential time savings, improved standards, reduced storage needs, better communication, and security for audit evidence when properly implemented.
This document discusses electronic working papers (EWP) for auditing. It notes that EWP can automate the entire audit process, including risk evaluation, planning, working methods, and storage of evidence. When selecting EWP software, auditors should consider which audit functions to automate and ensure a good fit with their current audit practices and technical environment. The implementation process requires effort to tailor the software to the auditor's needs, train staff, and establish standards. Benefits of EWP include potential time savings, improved standards, reduced storage needs, better communication, and security for audit evidence when properly implemented.
This document discusses electronic working papers (EWP) for auditing. It notes that EWP can automate the entire audit process, including risk evaluation, planning, working methods, and storage of evidence. When selecting EWP software, auditors should consider which audit functions to automate and ensure a good fit with their current audit practices and technical environment. The implementation process requires effort to tailor the software to the auditor's needs, train staff, and establish standards. Benefits of EWP include potential time savings, improved standards, reduced storage needs, better communication, and security for audit evidence when properly implemented.
This document discusses electronic working papers (EWP) for auditing. It notes that EWP can automate the entire audit process, including risk evaluation, planning, working methods, and storage of evidence. When selecting EWP software, auditors should consider which audit functions to automate and ensure a good fit with their current audit practices and technical environment. The implementation process requires effort to tailor the software to the auditor's needs, train staff, and establish standards. Benefits of EWP include potential time savings, improved standards, reduced storage needs, better communication, and security for audit evidence when properly implemented.
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Electronic Working Papers
CIPFA in the Midlands Audit Training Seminar
22 October 2003
Presentation by
Stephen Allen, MIIA Allen Computing and Business Analysis
Electronic Working Papers (EWP) in context Whole audit function can be automated, including risk evaluation & management (not strictly audit) strategic audit planning annual planning & resource control project management & control working methods and electronic working papers
What to automate? Products available for each audit function Some products cover several elements within the hierarchy including EWP Others concentrate on planning and audit resources to the exclusion of EWP No one product does it all yet EWP Relative importance All elements require consideration comprehensive packages sometimes lead to overly rigid working practices EWP the foundation of a pyramid impact on all audit staff clients both directors & operational computing requirement office requirement Why go electronic? Your reasons could include any or all of the following saving time improving standards reducing storage facilitating communication security considerations Attention on EWP Essentially two choices a product to match your audit style, or change audit style to match the product Most frequently a bit of both Audit so multi-faceted and complex that off the shelf solutions to EWP are not available Significant effort required to tailor any of the known products to your needs Audit style? Current state Most common means of communication Level of prescription in using ICQs and DAPs Audit forms with answer boxes and signature boxes Handling audit evidence Use of analytical tools Approach to audit review Style of audit report Approach to storage of audit papers Audit strategy for development Technical compatibility State of networking Unix platforms often have Windows front end Some products require file server based networks Thin client technologies impose restrictions on the use of Windows/PC based products Operating system Unix network security potentially excellent if set up correctly Windows NT security is good and improving Windows 98 and earlier has no security, but XP changed all that Computing power modern programs require access to large memory, fast machines and high quality display EWP Practical issues Presentation ease of use Moving around the project Audit evidence Issues and queries Recommendations Report writing Team working Printing out and Indexes Presentation ease of use Simple structure and concept Access to menus and/or function buttons Not too many windows Clear relationship between project and project environment Handling multiple projects in a single session Moving around the project Finding the bit you want Skipping between recent working papers Cross-referencing working papers Linking outside the project Looking at the structure or index Reviewing the project
Audit evidence Establishing consistent working paper reference approach Creating an index Cross referencing Linking electronic evidence Marking electronic evidence Creating electronic evidence from hard copy Issues and Queries Raising issues and queries who, when and current status Reviewing outstanding issues and queries Clearing queries who and when cause and effect Converting queries into reportable issues Reporting Recommendations Setting in context linking to findings/conclusions evaluation of consequences (risk) Reviewing Reporting Summarising creating an action plan Report writing Ensure all issues are considered Reviewing elements to report opportunity to say No opportunity to edit opportunity to set findings in context opportunity to establish an appropriate order Establish an audit trail to findings Editing final report in suitable package Team working Multi-user functionality strategic approach access controls Mechanics user hierarchies replication communication conflict resolution Rules and procedures access to guidance and standard work papers Printing out and Indexes Preview print layout adaptable layout page numbering dating Must be easy to print out Clear headings and source identity Should have printable index Improving standards Structure and approach logical structures and planning sound review procedures clear reporting logic Guidance variety of guidance approaches access to analytical tools ease of incorporation into package ease of access to user Improving standards Working papers presentation and layout on screen and as printed logic and completeness cross-referencing corroborative proof Storage What to store working papers corroborative evidence report When (and for how long after that) during audit at audit review after completion Storage Who needs access audit department auditees senior management other review bodies Method of storage (other than paper) electronic (including compressibility) hard disc CD ROM or other remote storage micro fiche Storage Methods of conversion scanners digital photography micro-fiche service or other external conversion Associated time and costs processing costs ongoing storage costs administration costs purchase of specialized viewers or software Communication Internal within Audit unit common frame work and points of reference for improvement better access to knowledge base External enhances presentation and consistency ensures adequacy of scope and logic can be a source of summarized evidence Security Traditionally audit is secretive EWP has little direct impact time to review our traditional approach? Sarbanes-Oxley Act in US requires storage of audit reports intact custodial sentences for directors for failure to comply To maintain audits in unaltered state burn on to CD ROM Commissioning process Organization and security of audit directories Preparation and incorporation of standard audit tests and schedules, templates, audit tools etc. Training in package environment and detailed use referencing and cross-referencing queries and recommendations review processes report writing Training in multi-user operation, replication, user hierarchies etc. Commissioning the audit detail General audit guidance and instructions Existing ICQs, testing schedules and access to analytical tools incorporation within the EWP package how to convert them (if required) programme of conversion Establishing appropriate layouts and standards Case for EWP reappraised Saving time needs effort and practice, but significant savings are possible especially in the reviewing and reporting parts of the auditing cycle Improving standards provides a very valuable framework for introducing improvements real improvements generated in the commissioning process very important
Case for EWP reappraised Reducing storage long-term reductions can be achieved with relative ease short-term reductions need careful consideration in context of audit approach and the handling of corroborative evidence Facilitating communication sound framework for internal improvements Case for EWP reappraised Security considerations encourages effective review of organization- wide network security issues electronic format permits secure and economic storage Ancillary advantages encourages real understanding of nature of applications and their control Summary Be clear on what to automate - affects product choice Look for good fit with current and future audit practice and technical environment Make sure that the EWP standard functionality is what you want Consider carefully storage implications Commissioning effort, lead times and product support are important Suppliers ACBA EWP http://www.acba.co.uk/ AutoAudit http://www.paisleyconsulting.com Galileo http://www.horwathsoftware.com/ TeamMate http://www.pwcglobal.com
