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Auditing Today’s Telecommunications Services, Assets, and Risks June 17, 2004

Auditing Today’s Telecommunications Services, Assets, and Risks June 17, 2004. Auditing Today's Telecommunications Services, Assets, and Risks. Telecommunication Expenditure Ranking Top 4 expenses for a company 10 years ago ranked no higher than 10th Contributing factors to increased cost

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Auditing Today’s Telecommunications Services, Assets, and Risks June 17, 2004

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  1. Auditing Today’s TelecommunicationsServices, Assets, and RisksJune 17, 2004

  2. Auditing Today's Telecommunications Services, Assets, and Risks • Telecommunication Expenditure Ranking • Top 4 expenses for a company • 10 years ago ranked no higher than 10th • Contributing factors to increased cost • Increased use of Telecom devices • Broader reach of business today • Proliferation of technology • Mobility requirements for workers

  3. Auditing Today's Telecommunications Services, Assets, and Risks • Contributing factors continued: • Increase taxes and fees levied against services • 20% added to costs • State and Local “me too” • Change in attitudes about necessary use • Perceived need for quick response in a competitive business environment.

  4. Elements of Telecommunication Infrastructure • Telecommunication infrastructure consists of the communications path and a communication devise • Path is comprised of PSN, private networks and virtual private networks, wireline and wireless • Communications Devise: telephone set, PDA, cell phone, modems, routers, etc.

  5. Telecom Cost Exposure • Elements of the risk or exposure • Wireline Services • Long Distance services • Local services, intralata toll, DA • Data network • Calling card • 900 and 976 services • Internet

  6. Telecom Cost Exposure • Wireless Services • Cell phone subscription • Cell phone usage • PDA service • Pager service

  7. Telecom Cost Exposure • Hardware and device exposure • Asset management of physical equipment • PBX, phone sets and ancillary equipment • Video and audio conference equipment • Modems, routers,firewall hardware • Cell phones, PDA, laptops

  8. What to Audit • Physical assets • Service contracts • Purchasing process for services and hardware • Payment process for services and hardware • Disposal process for services and assets • Process for asset protection

  9. Outside Assistance • Telecommunications is highly specialized • Terms • Cost elements • Process tracking • Complex technology

  10. For additional information Montie Grimes713-319-2738mgrimes@kpmg .com

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