Patent Publication Number: US-2005131781-A1

Title: System and method for auditing

Description:
BACKGROUND OF INVENTION  
      1. Field of the Invention  
      The present invention relates to auditing. In particular, one aspect of the present invention relates to computer-implemented systems and methods for auditing that allow the auditor to comment on responses made by an audited entity.  
      2. Background Art  
      Auditing relates the examination of an entity for the purposes of assessing the entity&#39;s abilities and capabilities with respect to a number of aspects of the entity&#39;s work. For example, audits can focus on the entity&#39;s accounts, business structures, information technologies, manufacturing facilities, etc.  
      To facilitate the examination and to make sure the auditor is focusing on the desired aspects of the entity&#39;s work, the auditor can be provided with a predefined set of audit questions. The audit questions can cover any aspect of the entity&#39;s work and can be in the form of a direct question to the entity or a request for the auditor to review data or request specific pieces of data. Each question includes a predefined answer for characterizing the entity&#39;s response to the question, such as yes, no, or not applicable answers. Depending on the type of question and the substance of the response, the auditor may need or want to expand beyond the provided answers. If the auditor would like to expand beyond the provided answers, the auditor can provide additional information and data, whether positive or negative, by adding a comment to the audit question.  
      When the auditor includes the comment to supplement the provided answers, the auditor is said to be commenting on the question and the added data is said to be the comment. While the comments are helpful to further define the responses, the comments are usually the auditor&#39;s own subjective words. With a number of different auditors conducting audits and a number of different areas being audited, the number of comments that a general auditing office may need to monitor and analyze can be rather large. The subjectivity of each comment makes it even more difficult for the general auditor&#39;s office to monitor and analyze the comments.  
     SUMMARY OF INVENTION  
      One aspect of the present invention overcomes the above-identified deficiencies by providing an auditor with an ability to classify comments according to selectable classifications.  
      One aspect of the present invention relates to a system for auditing. The system comprises an audit survey module configured to display at least one audit survey and a number of audit questions for the audit survey. In addition, the system comprises a comment module configured to receive a comment and at least one selection from a number of selectable classifications provided by the comment module for describing the comment. The comment module is used for classifying an answer to one of the audit questions according to the selected classification.  
      Another aspect of the present invention relates to a computer-implemented method for auditing. The computer-implemented method for auditing comprises providing a number of selectable classifications for describing a comment and receiving at least one selection from the number of selectable classifications for describing the comment. In addition, the comment and the at least one selected classification is transmitted to a computer-readable medium for auditing.  
      Yet another aspect of the present invention relates to a web-based method for conducting and monitoring a number of audits. The web-based system includes providing a computer-readable medium that is accessible through a web page. From the computer-readable medium, an audit survey module and an audit comment module are downloaded. The audit survey module is configured to display at least one audit survey and a number of audit questions for the audit survey. The audit comment module is configured to provide a comment entry field for entering in a textual description of a comment to one of the audit questions and it is also configured to provide a number of selectable classifications for describing the textual description of the comment. After downloading the audit survey module and the audit comment module, an auditor enters the textual description and selects at least one of the selectable classifications. Once each audit survey questions is asked and any comments to the questioned are entered, the auditor uploads the audit survey module and the comment module to the computer-readable medium. 
    
    
     BRIEF DESCRIPTION OF DRAWINGS  
       FIG. 1  illustrates a system for auditing, in accordance with the present invention;  
       FIG. 2  illustrates a survey module, in accordance with the present invention;  
       FIG. 3  illustrates a comment module, in accordance with the present invention;  
       FIG. 4  illustrates a completed audit module, in accordance with the present invention;  
       FIG. 5  illustrates a graphical display module, in accordance with the present invention;  
       FIG. 6  illustrates a comment solutions module, in accordance with the present invention;  
       FIG. 7  illustrates a comment correction module, in accordance with the present invention;  
       FIG. 8  illustrates an audit review module, in accordance with the present invention; and  
       FIG. 9  illustrates an audit assessment module, in accordance with the present invention. 
    
    
     DETAILED DESCRIPTION  
       FIG. 1  illustrates a system  10  for auditing according to one aspect of the present invention. The system  10  includes a computer-readable medium  12  for communicating with a number of modules that perform different aspects related to auditing. The computer-readable medium  12  can be any computer-readable medium that is capable of executing software commands and protocols, like a microprocessor, a computer, a server, or other database.  
      The modules comprise downloadable, computer-readable files or web-based mediums for accessing data stored on the computer-readable medium. The system  10  can be used with any auditing procedure for auditing any type of organization or individual. The system  10  can be configured to create one seamless audit procedure, from audit engagement to final correction of identified process weaknesses for improving the efficiency and effectiveness of audit work and enhancing communication with customers to improve the corporate control environment.  
      One aspect of the present invention relates to providing auditors with audit surveys for assistance with conducting the audit. Accordingly, as shown in  FIG. 2 , an audit survey module  18  is provided. The audit survey module  18  can be configured to display one or more audit surveys  20 . Each audit survey  20  includes a number of audit questions  22  for the audit survey  20  that relate to aspects of the audited entity&#39;s work. The desired type of audit survey  20  can be selected from a drop-down menu  26 . Based on the selected audit survey  20 , the audit module  18  accesses the computer-readable medium  12  to retrieve the selected audit  20 . The selected audit survey  20  includes described criterion  28  for each audit question  22 . The auditor should review the subject matter of the audited entity&#39;s work that corresponds with the described criterion  28  and record a response in the provided answer section  30 .  
      The auditor can access the audit survey  20  through a web-based medium or download the audit survey  20  as an audit file that can be displayed on a laptop computer. If the auditor downloads the audit survey  20  to a laptop computer, the auditor can take the laptop to the site of the audit and ask the displayed questions and record the response on the laptop. When completed, the auditor can upload the downloaded audit survey module  18  back to the computer-readable medium  12 . If the auditor is working through a web-based medium, like a web page, the auditor can display the audit questions  22  as if the audit survey  20  were downloaded to the laptop, but instead of having to upload the completed audit survey  20 , the responses to the audit questions are automatically recorded on the computer-readable medium  12 .  
      The audit survey  20  questions can be displayed in any type of format. As shown, the text of the questions are in one column with a corresponding answer section  30  to record the audited entity&#39;s response to the question. The responses to the questions are recorded by selecting one of the radio buttons that correspond with yes, no, or not applicable. In most cases, the text of the question sets up the answer to the questions in such a manner that, when the answer is read in combination with the questions, the yes, no, or not applicable response is sufficient to examine and analyzing the aspect of the entity&#39;s work that the question pertains to. If the auditor would like to add supplemental information beyond the provide responses, the auditor can click on an add comment link  32  provided in a comment section  34 . The add comment link  32  connects the auditor to or otherwise displays a comment module  40  for receiving the supplemental information.  
      The comment module  40 , as shown in  FIG. 3 , is configured to receive a comment  42  and at least one selection from a number of selectable classifications  44  provided by the comment module for describing the comment. The selectable classifications  44  are standardized so that the subjective comments  42  of the auditor can be associated according to predefined identities for use with storing, retrieving, monitoring, and analyzing the comments  42 . In this manner, the present invention can be configured for to provide one seamless audit procedure, from audit engagement to final correction of identified process weaknesses, for improving the efficiency and effectiveness of audit work and enhancing communication with customers to improve the corporate control environment.  
      The comment module  40  is displayed by clicking on the comment link  32  provided for each question in the audit survey module  18 , but the comment module  40  could be displayed in any other manner. As such, the comment module  40  is typically accessed in the same manner that the audit survey module  18  is accessed, i.e., through a web page or a downloaded file. Likewise, the comment module  40  could be standalone module that can be uploaded and download with or without the audit survey module  18 .  
      The comment module  40  provides a comment field  48  and two separate and selectable classification menus  50 ,  52 . By selecting one of the selectable classifications  44  provided for each menu  50  and  52 , the comment  42  is classified according to predefined classification. By simply reviewing the top-down description provided by the classifications  44 , the general thoughts contained in the comment  42  for the supplemental data is known.  
      The comment field  48  is a positional location provided by the comment module for directing the auditor where to type in the details (text) of the comment  42 . The comment  42  relates to a textual description entered by the auditor to describe a process strength, a process weakness, or other information of the audited entity with respect to one of the audit questions  22 .  
      The classifications  44  used for classifying the comments  42  can include any number of different classifications  44 , including a number of classifications that can be selected from the group consisting of a number of comment categories and a number of causal factors. The comment categories can be used to describe a broad process to which the comment question relates to and the causal factors can be used to describe why there is a strength or weakness for the broad process of the comment category. The selected comment category and causal factor classifications  44  provide a two-tiered system for classifying a comment  42  that comprises a general description of the subject matter of the comment and a general description of why there is a comment  42 . This provides a standardized system for describing each comment by associating at least one comment classification  44  with each comment  42  for use in classifying and commenting on an answer to one of the audit questions  22 .  
      As shown, the drop-down classification menus  50  and  52  correspond with comment categories and the causal factors that are accessed through the drop-down menu, but other arrangements can be used. For example, each comment category or causal factor could be provided on the screen with a radio button next to each classification for selecting the desired classification. Still further, the comment module  40  could be provided with a restricted classification field that would restrict, or only accept, entries that correspond with a predefined list of comment categories and causal factors.  
      Once the classifications are selected and the details of the comment  42  are received in the comment field, the auditor closes the comment  42  for attachment and association with the audit survey  20  question that prompted the comment  42 . As the auditor progresses through the audit and asks more and more audit questions, the auditor may desire to enter a comment  42  to other questions  22 . The auditor can add a comment  42  for each question  22  by simply clicking on the comment link  32  provided for each question  22 . The comment module  40  attaches and associates each comment  42  to the question  22  that prompted the comment  42 . A number of comments  42  can be entered, along with the selected classifications  44 , for any number of questions  22 . In addition, while not shown, multiple comments  42  could be entered for some questions  22  by clicking a double-comment button in the comment module or by providing another add comment link in the survey module.  
      Once each question is asked and the relevant comments are received, the audit is complete. Upon completion, the audit survey module  18  can transmit or otherwise send the answers to each question  22  and the attached comments  42  to the computer-readable medium  12 . If the audit survey  20  was downloaded to laptop, this is accomplished through an uploading step. If the audit survey  20  was accessed through a web page, the completed audit survey is already transmitted to the computer-readable medium. The transmitted information then becomes data stored on the computer-readable medium  12  that can be accessed and analyzed for monitoring the audited entity.  
      The completed audit surveys  20  and corresponding comments  42  are accessed with a completed audit module  56 , as shown in  FIG. 4 . The completed audit module  56  can be configured with a completed audit menu  66  for selecting a completed audit. Based on the selected audit, the completed audit module  56  can display a summary report  64 , the audit survey  20 , and the comments  42  for the completed audit. The completed audit module  56  can be a downloadable file or a web page. The completed audit module  56  can be configured for determining or receiving an identification of the audited entity for determining the audits available under the completed audit menu  66 . The audited entity can be identified in a log-in procedure, or other procedure, so that the drop-down menu only displays audit surveys for the identified entity.  
      The audit summary  64  is a document prepared by the auditor after completion of the audit and uploaded with the completed audit survey  20  and the comments  42  to the computer-readable medium  12 . The auditor can download or access through a web page a word processing template for use in filling out the summary report. The template can provide a number of headings for entering specified information for summarizing the completed audit. Optionally, the survey module  18  can be used to provide the template. The summary is sometimes referred to as an executive summary. The audit survey  20  and the audit comments  42  can be separately downloadable from the completed audit module  56 . In addition, as multiple audit surveys  20  can be conducted in one audit, more than one audit survey  20  and comments  42  can be displayed.  
      One aspect of the present invention relates to providing information in a meaningful manner so the results from a completed audit can be examined and understood without having to review the subjective content of each comment. Accordingly, as shown in  FIG. 5 , a graphical display module  68  is provided. The graphical display module  68  is configured to graphically display a classification selection frequency  70  for at least one of the selectable classifications  44 .  
      A graph  72  displays the selection frequency  70  in response to selecting at least one of the selectable classification  44 , that are now shown as comment categories  16  and causal factors  78 , and a submit button  74 . The graph  72  is a numeric representation of the number of times each selected comment category  76  and causal factor  78  have occurred in completed audits. This type of display can be generated by the computer-readable medium calculating the classification selection frequency for one or more of the selectable classifications and displaying the classifications selection frequency with the graphical display module. In addition, predefined graphs can be accessed by selecting a recurring comment categories link  80  or a recurring causal factors link  82  for displaying the classification selection frequency for the top five recurring comment categories or the top five recurring causal factors for an audited entity over a selectable period of time  84 . These and other graphs can be generated based on the comment categories and causal factors to generally describe the comments in a numerical manner so that each comment does not have to be reviewed in order to understand the aspects of the entity&#39;s work that are strengths or weaknesses. The graph  72  can be limited to an identified entity and only the selection frequency  70  for the identified entity is calculated.  
      As many of the comments relate to weaknesses in the audited entity&#39;s processes, the auditor can require the audited entity to correct or solve the weakness as identified in the comment. Accordingly, as shown in  FIG. 6 , a comment solutions module  90  is provided for displaying comment solutions  92  for previously solved comments  94 . The comment solutions  92  are retrievable by searching the computer-readable database based on at least one of the selectable classifications  44 , shown as a comment category menu  96  and a comment causal factor menu  98 .  
      An audited entity can select at least one of the comment categories  96  or causal factors  98  for accessing previously solved comments that correspond with the select comment categories  96  and causal factors  98 . By leveraging off the comment solutions  92 , the audited entity can develop a process for correcting the comment  42  that has had success in the past. For example, if the audited entity receives a comment classified according to a comment category for asset integrity and a causal factor for insufficient system capabilities, the audited entity can search through the comment solutions module to find other comments that fall under the same combination of classifications. The audit entity can then review the other comments described for the same classification headings and see the comment solution so that the audited entity may obtain additional information for solving or correcting the comment.  
      In addition to providing comment solutions to assist the audited entity in correcting comments, another aspect of the present invention relates to monitoring the progress of the audited entity in correcting the comment  42 . Accordingly, one aspect of the present invention comprises further configuring the comment module  40  to provide a date field  100  for receiving a comment correction date  102 . The comment correction date  102  is entered by either the auditor or the audited entity to indicate when the audited entity is expected to correct the comment  42 . The comment correction date  102  can be entered by typing in the calendar date or the comment module  40  could provide a menu or other means for receiving the date.  
      Based on the comment correction completion date  102 , the auditor and the audited party have an idea of a time frame in which any problems that need to be corrected for the described comment  42  are expected to be completed. The auditor can enter the comment correction date  102  at the time to the comment  42  is entered so that the comment correction date  102  can be transmitted to the computer-readable medium with the audit survey and the comments, or the audited entity can access the comment through a comment corrective action module  106 .  
      The comment corrective action module  106 , as shown in  FIG. 7 , uses the original comment correction date  102  for monitoring comment correction. The corrective action module  106  is accessed by the auditor or the identified entity based on the entity&#39;s identification so that only the comment  42  for the identified entity are shown. The comment corrective action module  106  is designed to permit monitoring of the audited entity&#39;s progress in correcting the comment by obtaining an evaluation rating  108  for monitoring the audited entity&#39;s progress in correcting the comment.  
      The evaluation rating  108  is obtained based on a difference between the original comment correction completion date  102  and an updated comment correction completion  110  date received by the comment correction module  106 . The updated comment corrective action date  110  is usually entered by either the auditor or the audited party typing the date directly into the comment through the corrective action module  106 , but it could also be entered with a drop-down menu. Each quarter the audited entity should submit and update the outstanding comments so that the evaluation rating  108  can be updated.  
      If the updated comment correction completion date  110  is changed to a date that occurs after the originally inputted comment correction completion date  102 , the corrective action module  106  determines a yellow calculation rating  108 . The yellow rating means the audited entity is not on target for correcting the comment as originally planned. The yellow rating is also determined if the original comment correction completion date  102  is entered for a period that occurred more than six months after the close of the audit. If the updated comment correction completion date  110  is the same or earlier than the originally entered comment correction date  110 , the evaluation rating  108  is green. The green rating means the audited entity is on target for correcting the comment as originally planned. If the evaluation rating  108  is yellow based on the updated comment correction date  110 , the evaluation rating  108  can become green if the updated corrective action date  110  is changed back to a date that is the same as or earlier than the originally entered comment correction date  102 . Alternatively, if another updated comment correction date  110  is entered after the previously updated comment correction date  110  and the subsequently updated date  110  is later than the previously entered updated date  110 , the evaluations rating  108  is determined to be red. The red rating means the audited entity is falling even farther behind in correcting the comment. The red rating is also determined if the original comment correcting completion date  102  is not entered at a predetermined time after the audit is closed.  
      As described above, the selectable classifications  44  can include any number of different descriptions. In addition, there are a number of different audit surveys  20  that can be selected for conducting different types of audits. Accordingly, as shown in  FIG. 8 , an audit review module  112  is configured to display instructions  116  for the selected audit survey  20  and the classification  44 .  
      The instructions  116  for the audit survey  40  detail the content of the audit and how the audit will be conducted. The instructions  116  for the classifications  44  detail criteria for explaining selection protocol for each one of the number of selectable classifications  44 . Either the audit survey  20  or the classifications  44  can be selected from a drop-down menu, or other means, for displaying the corresponding instructions  116 . A new auditor or the audited entity, can accesses the instructions, which are stored on the computer-readable medium, through the audit review module  112  so that they can prepare themselves for the audit.  
      Another aspect of the present invention relates to monitoring the overall ratings that an audited entity receives. As shown in  FIG. 2 , the audit survey module  18  includes a number of selectable assessment ratings  120 . The assessment ratings  120  are used to rate the entire audit. If more than one audit survey  20  is displayed by the audit module  18 , then the assessment rating  120  relates to the total assessment for all the displayed audit surveys  20 . As shown, only one assessment ratings  120  is provided for each audit.  
      An audit assessment module  122 , as shown in  FIG. 9 , is configured to receive the assessment rating  120  and display the assessment rating  120  for one of the audit surveys  20  by providing a menu for selecting the desired audit survey  20 . In the case where multiple audit surveys  20  were downloaded with the audit module  18 , as each audit is assigned the assessment rating  122  for the overall audit, only one of the audit surveys  20  needs to be selected in order to display the assessment rating  120  for the entire audit.  
      While the best mode for carrying out the invention has been described in detail, those familiar with the art to which this invention relates will recognize various alternative designs and embodiments for practicing the invention as defined by the following claims.