AUDIT PACKAGES

1. AUDIT PACKAGES “PAPERLESS” ENGAGEMENTS WHY? WHO? HOW? NOVEMBER 5, 2002 NEW YORK STATE SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS TECHNOLOGY ASSURANCE COMMITTEE PRESENTER – DANIEL TIRONE, CPA D.TIRONE@WORLDNET.ATT.NET

2. WHY? • COST • EFFICIENCY • CONSISTENCY • COLLABORATION • CONTROL • AUDIT STANDARDS – SAS 95

3. WHY? - COST • ACCORDING TO A COOPERS & LYBRAND STUDY IT COSTS $20 TO FILE A DOCUMENT, $120 TO FIND A LOST DOCUMENT AND $220 TO REPLACE A LOST OR MISFILED DOCUMENT • 8% OF ALL PAPER DOCUMENTS ARE TOTALLY LOST WHILE 3% OF PAPER DOCUMENTS ARE MISFILED

4. WHY? - EFFICIENCY • TEMPLATES • ROLL FORWARD CAPABILITIES • INTEGRATION WITH TAX, ACCOUNTING AND OTHER APPLICATIONS • INCREASED COLLABORATION POSSIBILITIES • PORTABILITY • ELIMINATE MANUAL (OOPS!) PROCESSES

5. WHY? - CONSISTENCY • STANDARDIZATION ACROSS ENGAGEMENT TYPES, OFFICES, PARTNERS AND STAFF • FIRM TEMPLATES • GREATER ASSURANCE OF MEETING STANDARDS

6. WHY? - COLLABORATION • WORKPAPERS EXIST AT MULTIPLE SITES AT THE SAME TIME • INDIVIDUALS IN DIFFERENT LOCATIONS SUCH AS HOME OFFICE, REMOTE OFFICE OR CLIENT LOCATION ALL SEE THE SAME WORKPAPERS AT THE SAME TIME • EASE OF ADDING SOMEONE OUTSIDE THE ENGAGEMENT FOR ADDITIONAL EXPERTISE

7. WHY? – AUDIT STANDARDS SAS 95 • PROPER PLANNING OF ASSISTANTS • SUFFICIENT COMPETENT EVIDENTIAL MATTER • PROPER SUPERVISION THROUGH THE INTEGRATION OF ENGAGEMENT GUIDANCE

8. WHY? - CONTROL • CONTROL OVER STORAGE OF WORKPAPERS DURING THE ENGAGEMENT • CONTROL OVER REVIEW PROCESS, INCLUDING DIAGNOSTICS • CONTROL OVER ACCESS TO WORKPAPERS

9. WHO? • PRACTITIONER’S PUBLISHING COMPANY – ENGAGEMENT MANAGER ES • CREATIVE SOLUTIONS INC. • CASEWARE • PROSYSTEMFX

10. HOW? • RESEARCH YOUR OPTIONS • TAKE IT SLOWLY • INTEGRATE COMPLETELY • ACCEPT CHANGE

11. ESSENTIALS OF AN ENGAGEMENT MANAGEMENT SYSTEM • FINAL PRODUCT – FINANCIAL STATEMENTS IN AN AUDIT ENVIRONMENT • DOCUMENT MANAGEMENT AND COLLABORATION • PROFESSIONAL ENGAGEMENT GUIDANCE AND CONTROL

12. ELEMENTS OF A PAPERLESS SOLUTION • DOCUMENT MANAGEMENT • DRILL DOWN CAPABLE • ARCHIVAL • TEAM MANAGEMENT • TEMPLATES • FIELD AND OFFICE CAPABLE • INTEGRATION WITH OTHER SOFTWARE • REVIEW TOOLS

13. IMPLEMENTATION CONSIDERATIONS • EASE OF USE • PRESENT SYSTEMS AND USE OF EXISTING DOCUMENTS • COST OF CONVERSION • LEARNING CURVE • SUPPORT • TRAINING

14. COMPARING THE PLAYERS

15. ABOUT PPC • PROVIDES CONTENT AND INTERNET BASED STORAGE OF DOCUMENTS • PROVIDES “ADVISOR”. COM TO SET-UP CLIENT PORTALS WHERE TAX RETURNS AND DOCUMENTS CAN BE STORED FOD CLIENTS AND CLIENTS CAN AGGREGATE THEIR FINANCIAL ACCOUNTS • WORKS BEST WITH CREATIVE SOLUTIONS • IS NOT A TRIAL BALANCE PROGRAM • DOCUMENT MANAGER

16. ABOUT CASEWARE • STRONG PROGRAM CREATED BY CANADIAN COMPANY • NUMEROUS INTEGRATED PRODUCTS • INTEGRATES WITH EXCEL AND WORD THROUGH A PROPRIETARY PROGRAM CALLED “CONNECTOR”

17. ABOUT CREATIVE SOLUTIONS, INC. • STRONG IN ELECTRONIC DOCUMENT STORAGE AND INTERNET USE • “FILE CABINET” SOLUTION • STRONG RELATIONSHIP WITH PPC AND EASIEST INTEGRATION WITH THE PPC CONTENT

18. ABOUT PROSYSTEMFX • FORMERLY CALLED EPACE • EXCEL AND WORD BASED • PROVIDES EITHER MILLER OR MCGLADREY-PULLEN CONTENT • PPC CONTENT CAN BE USED BUT DOES NOT INTEGRATE AS WELL

19. REALITIES • TECHNOLOGY IS UNDERUTILIZED • TECHNOLOGY PROVIDES BETTER CONTROL AND RESULTS • TECHNOLOGICALLY PROFICIENT WILL WIN THE RACE