Mike Gowell SVP and GM Wolters Kluwer

Transcription

1 Mike Gowell SVP and GM Wolters Kluwer

2 Mike Gowell SVP & GM, Wolters Kluwer Founder & General Manager, TeamMate Audit Management System 30 Years of audit and audit technology experience 22 Years with PwC (CPA), Audit Manager Director PwC Research and Development Center Founder and Host of the Annual TeamMate User Forums World s largest audit technology conference

3 Polling Devices Everyone should have a polling device Your responses are anonymous only group statistics are captured Please leave them in the room after the session

4 POLL How would you self assess your departments use of technology? A. We are doing an 36% excellent job leveraging technology 27% B. We are doing an ok job leveraging technology C. We have some room for improvement 7% D. We have plenty of room for improvement in our use of technology A. B. C. D. 30%

5 Access to Information In 2011 TeamMate initiated a new global thought leadership program designed to leverage the community of knowledge at its fingertips TeamMate is well positioned to study internal audit best practices have ready access to over 100,000 auditors have an R&D group that spends over 10,000 hours a month developing audit technology solutions host an annual internal audit conferences that are attended by over 1,000 auditors yearly have formally surveyed over 12,000 auditors have conducted deep-dive interviews with over 250 organizations hold over a dozen focus groups with auditors yearly.

6 Research Studies Available

7 5 Step Strategic Framework

8 GAM 2012 Establish a Technology Champion

9 Session Topic

10 What is a Technology Champion? Technology Champions (TCs) are individuals within an internal audit function who have overall responsibility for the technology being used by internal audit Training audit staff in tool usage Implementation of new technologies Developing guidance and protocols for tool usage Providing base level of local support for technology & tools Scheduling and maintaining tool updates Identifying and acquiring new technology tools Designing and updating internal audits technology strategy

11 Setting the Stage The IIA s 2015 CBOK Report - Staying a Step Ahead: Internal Audit's Use of Technology - found that only 4 in 10 CAEs say their use of technology is at an appropriate level To enhance the technological capabilities of their internal audit groups, CAEs are increasingly turning to Technology Champions (TCs), individuals assigned major responsibility for internal audit systems and tools, as a key part of their overall technology strategy. Exploring how to better deploy and utilize technology is a strategic consideration for many CAEs and not merely a technology issue, which is why this is an important SOPAC topic.

12 Objectives of Today s Presentation Highlight the results of TeamMate's 2015 Global Technology Survey, and follow-up research, which focus on the role, responsibilities and impact of TCs and provide useful information to CAEs thinking about establishing such a position Discuss further details about approaches being employed by TCs Discuss Key Success Factors for Technology Champions Provide tools to facilitate development of the TC concept 12

13 Survey Background and Demographics Approximately 400 auditors took part in TeamMate's 2015 Global Technology Survey, including 60% from organizations with TCs Survey sought to answer whether TCs provide tangible benefits to the internal audit functions and parent organizations they serve We also conducted follow-up research with more than 20 organizations who indicated that they had a TC

14 N=400 Survey Background and Demographics

15 Application to Smaller Audit Shops Having a Technology Champion on staff appears to be a leading practice of large and small organizations alike that are seeking to optimize their deployment and use of technology. Prior TeamMate research noted that the use of technology is an imperative for smaller audit shops See Leveraging Technology Effectively: A Critical Imperative for Small Audit Shops, TeamMate s 2013 Audit Technology Insights report

16 Summary Observations on Technology Champions Although the roles and responsibilities of Technology Champions around the world differ significantly, internal audit groups with established TC positions appear to be achieving real and tangible benefits from their investment in the TC role. Having a Technology Champion on staff appears to be a leading practice of large and small organizations alike that are seeking to optimize their deployment and use of technology. More than 80% of 2015 survey respondents with Technology Champions view them as a key success factor, suggesting they would not have achieved their current level of technology maturity without strong and effective contributions from their TC. KEY FINDING: A TC s primary focus is to enhance the overall audit process through better use of technology; it is not just technology for technology's sake!

17 Comparing Respondents Levels of Technology Maturity 26% of respondents with TCs are either at the Enhanced or Optimized levels of technology maturity as opposed to only 10% for respondents without a TC

18 Comparing Respondents Levels of Technology Prowess and Proficiency 32% of respondents with TCs are viewed as making very effective use of technology by their organizations

19 POLL Does your internal audit group currently have a Technology Champion or a person who could be considered to be serving in this capacity? A. Yes Full-time B. Yes Part-time 42% 40% C. No 19% 20 IATS Survey Results 60% have a TC 18% full time TC 82% part time role ull-time art-time No

20 POLL If you do not have a Technology Champion, why not? A. Budget limitations B. Staffing limitations C. Haven t considered it before now D. Don t consider it necessary 15% 52% 30% 4%

21 Part-Time Roles Predominate Generally indicates a tactical role Generally indicates a strategic role

22 Full-Time vs Part-Time TCs in full-time positions appear to have more structure in their roles Key Findings: 70% have formal job descriptions 65% have specific performance goals and measures 55% are viewed as long-term positions TeamMate Observation: Our survey data indicates that fulltime TCs are most frequently found in IA groups with 25 or more staff.

23 Current Functional Focus of TCs Key Findings: Training predominates 61% expanding use of technology by audit staff, the key focus of many TCs 43% are monitoring usage, skills and employment of leading practices 38% are researching new technologies 23% are developing routines for management

24 Responsibilities of TCs Technology training is the primary responsibility of most TCs Best Practice Key findings: Half the TCs are responsible for identifying and acquiring new technology tools Slightly more than 40% are responsible for designing or updating IA s technology strategy 41% are responsible for budgeting for technology software and tools

25 Automation Focus of TCs Six in 10 TCs are assisting or leading their organization s efforts in data mining /analysis Not surprisingly, an overwhelming majority of TCs focus on audit management technology; for most TCs, this is where their role originated Note that 27% are now focusing on document management tools

26 IA Management Perceptions of TCs More than one third are viewed as a key strategic player or a key member of IA management (best practice) The majority of TCs are viewed in various roles that are technical in nature

27 The Evolutionary Nature of the TC Role Often starts with a champion for a specific product or initiative Broadens to include technical support across IA Typical Role Evolution: o strategic initiatives such as developing a technology plan for the internal audit department o keeping current with how technology is being used in the parent organization

28 The Adaptive Role of Technology Champion: "It's What You Make It" TC roles tend to reflect the backgrounds of the TCs themselves Personal initiative can provide a strong catalyst to broaden the TC role Capital One: Lani Costello, Principal Audit Associate At Capital One, the TC role is basically what I make it. I put in a request to perform an audit so I could better learn the audit process and the challenges experienced by end users. In turn, I took what I learned serving as an auditor back to my role as Technology Champion and strengthened my push for continuous improvement. ArcelorMittal, World s Largest Steel & Mining Company: Viji Ganesan, IT Solutions Architect/TeamMate Administrator, Internal Assurance It was a tactical role which has turned strategic in recent times. My boss keeps saying that I have changed the job description. 30

29 Similarities and Differences of Approach The TC roles appear to be tailored to the specific needs of an organization, reflecting the various stages of technology maturity and focus The Primary TC mission: Leverage technology to enhance the audit process and strengthen ability of auditors to perform their work through better use of technology Goes beyond technology alone Linking Audit Technology and Methodology In some organizations, the TC is part of a Professional Practices group within internal audit In these situations, the TC s mission is to help align the audit technology with the audit methodology

30 Tactical Orientation Predominates Most TCs focus primarily on tactical issues, providing technical support to members of the audit staff in key areas such as: Training Updating technology tools Expanding the use of existing tools

31 Tactical Orientation Predominates Example: ArcelorMittal, world's largest steel & mining company Challenges per Viji Ganesan, IT Solutions Architect & Technology Champion, Internal Assurance Overlapping reporting Dual databases of different audit management software versions Duplicate project codes with manual intervention TC's Solution: Tailored Dashboard TC defined custom reports for development by software provider which could be loaded onto dashboards to meet KPI (key performance indicator) reporting needs CAE uses dashboard to track internal audit KPIs in real time

32 Some TCs Place More Emphasis on Strategic Contributions Examples of Strategic Activities Researching new technologies Developing a technology strategy or strategic plan for the internal audit function Developing, contributing to or controlling the technology budget Data Analytics & Continuous Auditing: Key Focus Areas A number of TCs are leading initiatives in data analytics and continuous auditing Bryon Chesser, VP/IT Audit at GM Financial is leading efforts to enhance the integration of data analytics into the audit process, from planning through audit completion

33 Career Planning for TCs: Time to Prioritize? Our research suggests that career planning and development for TCs is minimal, at best Most organizations with TCs lack a defined career path for the role Organizations risk loss of expertise and talent if their TCs move on TeamMate Observation: Given the perceived importance of the TC role to achieving assurance objectives, CAEs are advised to place a high priority on career planning for TCs, who tend to be valuable members of either the internal audit staff or a related activity and who are well-positioned to make significant strategic contributions to the audit function.

34 TC Rollout & Implementation 36 Assess your current state of technology and develop a plan for where you want internal audit to be in the future Consider your assurance and advisory objectives and how a TC could best help to meet those objectives If you already have a TC position, explore how it might be enhanced If you do not have a TC on staff, assess the merits of establishing the position Consider the tools and Key Success Factors described in this research Establish a clear mission for your TC with a clear focus on enhancing the audit process Describe the types of backgrounds, competencies and personal attributes to be sought in TC candidates Assess career options for your TCs, both within and outside of your department, including your parent organization Establish the TC role and inform your staff about the new position and application information

35 TeamMate Technology Champion Maturity Model Single Product Champion Deploy automated work papers Initial use of CAATs Time for Champion's duties squeezed from other responsibilities Develop technology training for staff Expanded technical training for staff Expand the use of data retrieval to most audits Audit scheduling tool Initial ad hoc data mining Strategic Technical Technology Champion Develop, manage formal technology strategy Developing monitoring routines for management Custom data mining / data analytics Risk assessment tools Champion has allocated time for activities Technology Champion Develop highly skilled data team Continuous controls testing and monitoring Tech Champion viewed as a key strategic member of management Manage overall technology budget Standalone automated testing routines, e.g. fraud Champion position viewed as career enhancing Continuous risk assessment The 3 Stages in Technology Champion Evolution Overlaying the 4- phased TeamMate Technology Maturity Model

36 TeamMate Technology Champion Maturity Model 1-Initial 2-Adequate 3-Enhanced 4-Optimized Initial role is typically to train and implement an audit management system Technology tools viewed as tactical element of audit process Champion is a part-time, technical support role Basic investment in technology tools: EWP and basic data tool Champion viewed as a technical expert and resource for the audit staff Technology still viewed as a tactical element of the audit process Implementing an informal technology strategy Audit policies require use of EWP and data tools Expanded investment in training of audit staff on tools Technology viewed by IA management as a strategic enabler Champion viewed as a technical advisor providing insights and forward-looking perspective on technology Formal technology strategy is both developed and implemented Data mining/analysis used on more than 50% of audits Champion oversees overall technology budget Champion viewed as a key strategic player and a key member of audit management Internal audit recognized by business units as being highly proficient in the use of technology Continued investment in human resources, advanced technology tools and training Technology-enabled continuous audit routines

37 POLL If you have a Technology Champion in your internal audit group, at what level of maturity is that position? A. Initial B. Adequate C. Advanced D. Optimized 47% 33% 17% 3% A. B. C. D. 40

38 Developing an Initial Technology Champion Job Description Four Key Points 1. Tailor job description to your specific situation and objectives, e.g., a more strategic TC position might be right for some organizations but not for others 2. Align position with your overall technology objectives and strategies 3. Build in flexibility so that the position can evolve as the organization matures in its use of technology and the TC continues to enhance his/her skills and capabilities 4. Allow for grade and salary progression What follows are two composite job descriptions: Strategic Technology Champion Technical Technology Champion These composite job descriptions: Outline how the positions could be structured Suggest ideas to consider in scoping out each position

39 Technical / Tactical Technology Champion: Composite Job Description Organizational Level Audit staff member Position Source Relationship to Audit Staff Time Allocation Primary Technology Focus Primary Functional Focus Part-time Internally from within IA Primary source for technology questions & training Squeeze in time on top of other duties Audit management tools; data tools Training & expanding use of technology

40 Technical Technology Champion: Composite Job Description Responsibilities Trains audit staff Develops policies for technology usage Updates training on new releases Schedules and manages updates Viewed by CAE & Audit Management Impact Implements new technologies Technical expert & audit staff resource Ratings: "Good to Desirable" "Helpful to have this person in this position"

41 Strategic Technology Champion: Composite Job Description Organizational Level Audit staff member or Head of IT Audit Position Full-time or part time dedicated position with formal job description Source Internally from within IA or experienced outside hire Relationship to Audit Staff Time Allocation Primary Technology Focus Primary Functional Focus Primary source for Qs & training Time allocated separately for TC duties Data tools; document management tools; risk/erm tools Moving IA function to more continuous auditing and data-analysis routines

42 Strategic Technology Champion: Composite Job Description Responsibilities Manages technology budget Develops and manages formal technology strategy Provides technology or CAAT (computer-assisted audit technique) support to financial auditors Develops continuous auditing routines Develops monitoring routines for management Conducts research relating to acquisition of new technologies Implements new technologies Viewed by CAE & Audit Management Impact A key strategic player; a key member of management "Vital"... we would not have reached our current level of proficiency without the TC's contributions

43 Key Success Factors for a TC Program Achieving "Tone at the Top" Support Every Technology Champion needs solid backing from the chief audit executive and other audit leaders in order to succeed. Such support sends a strong message to the entire audit staff, corporate leaders and the audit committee about the importance of technology initiatives to achieving audit objectives and enhancing the overall audit process.

44 Techology Champion Characteristics 1.Being a Motivated Self-Starter Since there are no hardand-fast rules about how to operate as a Technology Champion, a TC's success is directly related to the extent to which the individual can create and seize opportunities to add value without a lot of direct supervision. 2.Strong Technical Expertise Whether or not the TC has an audit background, the TC needs sufficient technical competence to achieve credibility in the role.

45 Techology Champion Characteristics 4. A Deep Understanding of Audit Methodology Since an organization creates a TC position to enhance its audit processes, the TC needs an in-depth understanding of both the current as well as desired or planned audit processes. 5. Keeping Current with Technology Staying current with new developments in the technology arena and how they could be used to strengthen the audit process is imperative for a Technology Champion. 6. Keeping Up-to-Date with Corporate IT To deliver value to audit stakeholders, a TC also needs a thorough understanding of the business processes and systems being employed by the audit function's parent organization. To keep pace with corporate developments, the TC needs to be aware of any projected changes in the process and systems realm and how these changes would affect the audit function.

46 Techology Champion Characteristics 6. Superior Communication Skills In addition to technical competence, a TC needs to demonstrate that he or she is an excellent communicator who has the interpersonal capabilities and aptitudes needed to work with people at all levels of technology experience and expertise. 7. Organizational Skills & Flexibility The unstructured nature of a typical TC role places a premium on strong organizational capabilities and the ability to deal effectively with both change and ambiguity. 8. A Relationship Mindset Building good relationships across the internal audit function and with external departments is an imperative for a Technology Champion, particularly when it comes to working with members of the parent organization's Information Technology group. 9. Solid Business Judgment A Technology Champion needs to demonstrate good business judgment on a continual basis. He or she also needs to be able to analyze the risk/reward dimensions of alternative hardware and software considerations from both the audit and corporate IT perspectives in addition to assessing the technology itself.

47 Benefits of the TC Role Survey results and individual interviews confirm that organizations that have established the TC position see direct benefits Creating a TC position: o Helps enhance the overall internal audit process o Provides a single point of focus and contact for technology o Provides forward-thinking, strategic thinkers o Helps ensure technology purchased is leveraged effectively o Helps move organizations up the technology maturity curve o Helps close the effectiveness gap Some organizations also report measurable improvements in their audit processes in terms of productivity and audit plan completion 50

48 Resources Available Mike Gowell Stop by the booth to pick up this report