Your Trusted Partner for Audit Analytics Experiences

Your Trusted Partner for Audit Analytics Experiences & Benefits of ACL Copyright © 2011 ACL Services Ltd. Peter Dean, Director, Business Intelligence and Strategy Ltd Robin Clough, ACDA, Managing Director and ACL Certified Master Trainer, Data. Consulting Ltd

ACL Services Ltd. Who are we? § Peter Dean, Managing Director of BIAS § KPMG Audit, Alliance & Leicester plc, CFO § Business intelligence & data strategy expertise § Aviation Sector specialist combined with strong audit & finance experience § ACL Reseller with a focus for developing best practice technology solutions to the sector § Passion for Audit Analytics incorporating dashboard and KPI metrics to support the internal audit process Ltd. Copyright © 2011 ACL Services 2

ACL Services Ltd. Copyright © 2011 ACL Services 3 And § Robin Clough, Managing Director of Data. Consulting § Certified ACL trainer § Founder of Data. Consulting, authorised UK ACL distributor § Formerly Pw. C, Deloitte § ACL user for 17 years § Focused on helping clients to get more from ACL products

Think in Terms of Data

ACL Services Ltd. Copyright © 2011 ACL Services 5 Stronger Together: Our Insights for Today § The ACL Story (Robin) § Your Strategic Positioning & Roadmap (Robin) § Tips For Moving Forward (Peter) § Customer Experiences (Peter) § Summary & Questions (Peter & Robin)

ACL Services Ltd. The ACL Story 2008 ACL implements Enterprise CCM for Purchase to Pay at Siemens AG globally Release of ACL Audit. Exchange: a managed analytics platform and continuous auditing solution 2000 – 2002 ACL delivers first customized continuous auditing and monitoring applications for specific business processes 1987 -1999 Auditors increasingly automate use of ACL for data analysis and implement regularly repeated applications Copyright © 2011 ACL Services 6 2011 ACL releases the ACL Audit Analytic Capability Model and AX 3 2003 ACL launches 1 st Continuous Controls Monitoring (CCM) product suite 2009 ACL releases AX 2, the Business Assurance Platform to enable greater depth of analysis, and enhance productivity 2004 -2007 ACL implements CCM products for 6 core business processes at wide range of clients

ACL Services Ltd. Copyright © 2011 ACL Services 7 The ACL Story cont. . CANADA UNITED STATES ACL solutions are available: § In local languages § Through a global network of ACL offices and Certified Partners Argentina Australia Austria Bahrain Benelux Bulgaria Canada China Cyprus Ecuador Egypt Finland France Germany Greece Hong Kong India Ireland Israel Italy Japan Jordan Kuwait Lebanon Nordics Oman Paraguay Poland Portugal Qatar Russia Saudi Arabia Singapore South Africa South Korea Spain Taiwan Turkey UAE United Kingdom United States Uruguay

ACL Services Ltd. Your Strategic Positioning & Roadmap § Audit Analytic Capability Model – – – Codified based on 20+ years of experience 14, 000 customer organizations worldwide Reviewed by Big Four partners Covers the full spectrum of audit analytics needs Will lead to an evaluation tool for our customers Copyright © 2011 ACL Services 8

ACL Services Ltd. Copyright © 2011 ACL Services 9 The ACL Audit Analytic Capability Model repetitive ad hoc continuou s Level 5 Foresight Monitoring Audit Contribution Level 4 Automated Insight Level 3 Managed Level 2 Applied Hindsight Level 1 Basic Sophistication

ACL Services Ltd. Level 1: Basic § Characteristics – Audit-specific technology – Ad hoc query and analysis – Used to perform analysis of large data sets § Benefits – Rapid insight into entire data populations – Increased ability to detect fraud, errors and inefficiencies – Increased audit quality and assurance Copyright © 2011 ACL Services 10

ACL Services Ltd. Copyright © 2011 ACL Services 11 Level 2: Applied § Characteristics – Analytics fully integrated into audit process – Comprehensive suite of repeatable tests are designed and developed – Applied to a range of audit and control objectives § Benefits – Gain greater insight into targeted audit areas – Improved quality and reliability of tests – Improve audit efficiency and effectiveness

ACL Services Ltd. Level 3: Managed § Characteristics – Centralized or local processing – Secure environment to store data – Audit analytic content shared within the team § Benefits – Manage all audit analytic content in one secure place – Do more with faster analysis – Risk mitigation / sustainability Copyright © 2011 ACL Services 12

ACL Services Ltd. Copyright © 2011 ACL Services 13 Level 4: Automated § Characteristics – Recurring and scheduled analysis – Audit processes change from cyclical to continuous – A broader set of the audit team applying analytics across the audit process § Benefits – Achieve timely insight into audit and control issues – Improve audit team efficiency through automation – Audit scope increased through multiple concurrent auditing

ACL Services Ltd. Copyright © 2011 ACL Services 14 Level 5: Monitoring § Characteristics – Exceptions routed to business process owners for review and remediation – Reporting and monitoring of the results and trends identified – Increased use of audit analytics across the organization § Benefits – Develop a partnership with business process owners to provide insight into their operational performance – Achieve timely resolution of exceptions – Provide the organization with a clearer picture of risks in business processes

ACL Services Ltd. Copyright © 2011 ACL Services 15 Technology for AACM 1. Basic 2. Applied 3. Managed 4. Automated 5. Monitoring ACL Desktop AX Core AX Gateway & MS Add-ins AX Exception Direct Link AX Datasource

ACL Services Ltd. The ACL Software Family Managed Automation – Built-in Analytic Scheduler Server Analytic Processing Power Content Management – Any File Types Basic & Applied Automated Data Access Components Monitoring ERP Enterpris e Data SQL ACL D/B Interfaces Access virtually any data source and automate data feeds Copyright © 2011 ACL Services 16

ACL Services Ltd. Copyright © 2011 ACL Services 17 It’s a Journey

ACL Services Ltd. Copyright © 2011 ACL Services 18 Start Planning the Journey : Tips for Moving Forward § Access where you are and where you would like Level to be 5 Monitoring § Begin to plan your strategy & scope Level 4 Automated § People, processes, technology & data § Identify current resource requirements Level 3 Managed § Target labour intensive areas § Track progress against plan § Communicate Level 1 Basic Level 2 Applied

ACL Services Ltd. Copyright © 2011 ACL Services 19 The Audit Management Role : Making CA/CM a reality § Create the Roadmap § Basic – Encourage experimentation with key data § Applied – Integrate analytics as part of audit planning § Managed – Facilitate server technology § Automated – Realign methodology (100% Data Coverage) § Continuous – Integrate with wider business departments § Build the culture for a sustainable project

ACL Services Ltd. Copyright © 2011 ACL Services 20 Sharing Best Practice : IAAIA Workshops § The process has already started § 2010 : E Ticketing Audit Work Program § 2011 : Station, ERM & Continuous Audit workshops § Challenges & Benefits are being shared § Dashboards with Fraud & Risk Metrics being developed § Technology and data considerations….

ACL Services Ltd. Copyright © 2011 ACL Services 21 Key Technology & Data Considerations § Understand the data scope, availability & ownership § Do not forget ‘orphaned’ data (e. g. Cards, website etc) § IA /IT roles and responsibilities (data structures & access) § 100% transactional data? Data integration responsibility? § Align Risk Metrics, Audit Plans and Data – which order? § Assess ROI quick wins (resource, critical, potential savings)

ACL Services Ltd. Copyright © 2011 ACL Services 22 Customer Case Study: Continuous Auditing Hawaiian Airlines Objectives Benefits § Implement a server based business assurance platform to draw large data volumes from numerous, disparate systems. § Reduce the time required to complete projects by approximately 99% with automation. § Enable several auditors to work with data analytics and continuous auditing projects – without the risk of creating multiple file versions, security issues or data overwrites. § Enhance audits reputation § Gain 100% data coverage, which significantly reduces the incidence of improper flight benefit usage. § Achieve a measurable, monetary ROI by using trendbased analytics and automated continuous

ACL Services Ltd. Copyright © 2011 ACL Services 23 Customer Case Study: Continuous Auditing Hawaiian Airlines The ACL Audit. Exchange solution is paying for itself in time savings alone. It will continue to deliver value as we implement continuous monitoring throughout the organization. Mark Curnow Manager, Corporate Audit, Hawaiian Airlines

ACL Services Ltd. Copyright © 2011 ACL Services 24 The internal time savings is huge, with team members estimating that this process alone is paying for the cost of the Audit. Exchange technology. Mark Curnow, Manager, Corporate Audit Hawaiian Airlines

ACL Services Ltd. Copyright © 2011 ACL Services 25 Customer Case Study: Applied Analytics Emirates Achievements § Deeper, more thorough data §Dramatically less time required to extract, prepare, format and generate information for audits – in some cases, several weeks worth of labour has been cut to 10 minutes or less analysis with higher quality results and a standardized reporting format §Fewer manual errors and omissions with complete data coverage, rather than random sampling §Targeted analysis that can automatically be conducted across disparate corporate systems and data formats §Continuous monitoring that quickly identifies exceptions and control gaps, and provides greater business assurance

ACL Services Ltd. Copyright © 2011 ACL Services 26 Customer Case Study: Applied Anaytics Emirates It can be said that ACL is the ‘Genie’ that is producing magical results for Emirates Internal Audit. Kalpesh S Vashi Information Systems Audit Manager, Emirates

ACL Services Ltd. Copyright © 2011 ACL Services 27 We can help you be “Stronger Together” § Aim to deliver demonstrable ROI and valueadded through people, processes, technology and DATA § People – Knowledge transfer, training, postimplementation reviews and on-going support § Processes – Understand the business, risk and constraints § Technology – share, advise, implement and support sector focused solutions § DATA – The key to a successful Audit Analytics strategy is understanding the

ACL Services Ltd. Copyright © 2011 ACL Services 28 Summary § ACL Services is a technology solution provider uniquely built around the needs of audit and compliance professionals. § ACL and their global partner network offers organisations a way to leverage their existing compliance and audit analytic activities for improved business performance and increased efficiency. § ACL solves audit’s challenges with a combination of market leading software, services and analytics that streamline audit processes. 14, 700+ customer Covers the full 24+ years of organizations spectrum of audit experience worldwide analytic needs

ACL Services Ltd. Your Trusted Partner for Audit Analytics Copyright © 2011 ACL Services 29