23.3.2004 / Pekka Rahikainen IT USE IN AUDITING Pentti Mykkänen State Audit Office of Finland 2 September 2004

23.3.2004 / Pekka Rahikainen

IT USE

IN

AUDITING

Pentti Mykkänen State Audit Office of Finland 2 September 2004


Standard working papers for FAModels and the basic contents of different

working papers are defined, e.g. final report, interim report

Classified typical questionnaires (FA)Many, e.g. regarding the audit of financial

statement, salaries, procurements

Flexibility of the audit methodologyWill be updated when necessary

METHODOLOGICAL ISSUES

Pentti Mykkänen State Office of Finland 2 September 2004


Classified typical questionnaires (PA)Audit-specific questionnaires are used

to some extent

Purpose: inside the audit, matters will be askedthe same way

A guide in which it is described usedand available audit techniques, proceduresand instruments (including IT based) isunder development

METHODOLOGICAL ISSUES



IT tools for the analysis of informationACL (version 8.2.X)Analyze, classify, summarize, cross-tabulate,

extract, statistics etc.Risk analysis, preparing own reportsSimulate financial statement reports (scripts)Pre-made scripts for audit process

Rondo (electronic accounts receivable and archiving)Summarizing, calculating, searchingPreparing own reporting

Excel etc.Smaller extent

TECHNICAL ISSUES – IT tools



IT tools for the analysis of information(Performance Audit)

Statistical analysisSPSS (ver.12)Stata (ver. 8.0)

Qualitative analysisNud*ist (ver. N6)NVivo (ver. 10)

OtherInspiration (ver. 7.5)




Reliability of the informationInformation used by ACLTransaction level information from every state

accounting office, summarized data from central bookkeeping system + report files, e.g. fromsalary system, accounts payable/receivable system

Everything will be balanced with state centralbookkeeping information, general ledger etc.

Information given from RondoEverything will be balanced with information

in accounting system, general ledger etc.




Training of auditorsACL

Training regarding new versions (half a day)Training for new-comers (2 days)Training for new audit procedures, e.g.

new pre-made scripts when necessary

Rondo

So far: 2 times half a day

Excel etc.

Every now and then




Use of special softwareNothing like TeamMate or similar

Use of shared recourses???

Use of intranetDocuments regarding objectives and goals Planning documents including project listsAudit manual, guides and guidelines etc.

TECHNICAL ISSUES – Software for the Audit management



Use of intranet Text archives (browser based)

SAO´s internal record documents since 2002Categorized as general, personnel and financial

administration, expert and audit activities and other matters

Archives of regulations

Essential Acts, Decrees, orders, instructions,Government decisions, resolutions etc.

Divided into 17 different categories

TECHNICAL ISSUES – Software for the Audit management



Access right to get all information“The state auditors and The Parliamentary State

Auditors and the State Audit Office have the right to receive information needed for the performance of their duties from public authorities and otherentities subject to their control." (Constitution of Finland)

“The State Audit Office shall have the right to obtain from authorities and other parties as referred to in Section 2 without delay documents, reports and other information necessary for the State Audit Office to perform its prescribed task.” (The Acton the State Audit Office)

LEGAL ISSUES



Access right to get all information

“The Act on the Right of the Parliamentary State Auditors and the State Audit Office to Audit Certain Credit Transfers between Finland and the European Communities” defines SAO´s rights to get information regarding EU-transfers.

LEGAL ISSUES



Right to get information in electronic form“Auditees shall not have the right to charge the State

Audit Office for copying documents or providinginformation in printed form or with the help ofa technical link or otherwise in electronic form orin a similar manner.” (The Act on the State Audit Office)

Order given by the State Treasury 1997 defines the format in which accounting offices are obligedto deliver bookkeeping information (transaction/balance) to the SAO

On line access to information in Rondo system (Arrangements guided by the State Treasury)

LEGAL ISSUES



THE END
