Continuous Auditing Continuous Monitoring Of Business Controls Discussant’s Comments Presented by: Clyde Rogers – October, 2005

Overview High Level of Interest by Business Executives, Academics, Auditors and Technology Vendors Response to Changing Regulatory and Stakeholder Expectations and Requirements such as COSO and Sarbanes/Oxley Identification and Reporting of Information on “holistic/complete portfolio”, “process” and “close to or at real time”

Status – Next Steps Day to Day Practitioners Need to Move Implementation Phase Forward Siemens Project- Good Start. The Need was Identified by Siemens Brand Profile of Siemens and Rutgers High Quality Work in IT Area Leverage Point is the Business Case

Significant Benefits/Learning Pilot Scope aligned and formalized with Internal & External Audit Supported Year-End and Sarbanes/Oxley Compliance Risk Ranking and Weighting of Exceptions Gaining Access & Impact on Enterprise Systems Protecting Client Data Management of Alarm Floods

Recommendations Expand Participants such as Business Owners, Enterprise Risk & Governance and Audit – “Enterprise Wide” Additional Time is Worth the Effort – Build Consensus – Clarify Roles & Responsibilities Align to COSO Framework and SOX - Audit to Focus on Management’s Monitoring Model/Processes & Attestation Leverage Client Tools, Mapping, Risk Rankings & Duplication – Additional Savings/Effectiveness

Summary Continuous Auditing supports COSO, Sarbanes/Oxley Improves Effectiveness in the Management of Risk & Compliance Significant Cost Savings Technology is a Major Enabler Enterprise Wide Approach & Model