Experiences & Benefits of ACL

1. Experiences & Benefits of ACL Peter Dean, Director, Business Intelligence and Strategy Ltd Robin Clough, ACDA, Managing Director and ACL Certified Master Trainer, DataConsulting Ltd

2. 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

3. And • Robin Clough, Managing Director of DataConsulting • Certified ACL trainer • Founder of DataConsulting, authorised UK ACL distributor • Formerly PwC, Deloitte • ACL user for 17 years • Focused on helping clients to get more from ACL products

4. Think in Terms of Data

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)

6. The ACL Story 2008 ACL implements Enterprise CCM for Purchase to Pay at Siemens AG globally Release of ACL AuditExchange: a managed analytics platform and continuous auditing solution 2011 ACL releases the ACL Audit Analytic Capability Model and AX3 2009 ACL releases AX2, the Business Assurance Platform to enable greater depth of analysis, and enhance productivity 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 2004-2007 ACL implements CCM products for 6 core business processes at wide range of clients 2003 ACL launches 1st Continuous Controls Monitoring (CCM) product suite

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

8. 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

9. repetitive ad hoc continuous The ACL Audit Analytic Capability Model Foresight Level 5 Monitoring Level 4 Automated Insight Level 3 Managed Audit Contribution Level 2 Applied Level 1 Basic Hindsight Sophistication

10. 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

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

12. 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

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 multipleconcurrent auditing

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 toprovide insight into their operational performance • Achieve timely resolution of exceptions • Provide the organization with a clearer pictureof risks in business processes

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

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

17. It’s a Journey

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

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

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….

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) • Identify Audit Analytics technology & scripting capabilities • Start small and build incrementally on success • What have others done …?

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. • 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 and ensure buy-in on continuous auditing from senior management. • Reduce the time required to complete projects by approximately 99% with automation. • Gain 100% data coverage, which significantly reduces the incidence of improper flight benefit usage. • Achieve a measurable, monetary ROI by using trend-based analytics and automated continuous auditing routines.

23. Customer Case Study: Continuous Auditing Hawaiian Airlines The ACL AuditExchange 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

24. The internal time savings is huge, with team members estimating that this process alone is paying for the cost of the AuditExchange technology. Mark Curnow, Manager, Corporate Audit Hawaiian Airlines

25. Customer Case Study: Applied AnalyticsEmirates Achievements • Deeper, more thorough data analysis with higher quality results and a standardized reporting format • Continuous monitoring that quickly identifies exceptions and control gaps, and provides greater business assurance • Targeted analysis that can automatically be conducted across disparate corporate systems and data formats • 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 • Fewer manual errors and omissions with complete data coverage, rather than random sampling

26. Customer Case Study: Applied AnayticsEmirates 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

27. We can help you be “Stronger Together” • Aim to deliver demonstrable ROI and value-added through people, processes, technology and DATA • People – Knowledge transfer, training, post-implementation 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 integration of all the relevant data fields and sources

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. • 24+ years of experience • 14,700+ customer organizations worldwide • Covers the full spectrum of audit analytic needs

29. Your Trusted Partner for Audit Analytics