Bringing Real World Experience into

the Classroom

Urton Anderson and Joseph Mauriello

Agenda

• Experiential Learning – Why

• Team Project – Real Audits

• Alternative Project – Individual Process Analysis

• Shadow Project

• Working with UT Dallas IA Function

Experiential Learning

• Team Project – Real Audits

• Alternative Project – Individual Process Analysis

• Shadow Project

Real Audits

• Teams of 3 to 5

• Teams Assigned• Experience

– Audit

– Computer

• Language

• Interest

• Transportation constraints

The Project

• Size of Project• Approximately 60 hours per team member

• Supervision• IA staff member

• Myself

The Project - Examples

Since 1991 0ver 800 engagements

• UKIA – Cash Management and PCI DSS

• University of Kentucky – UBIT

• Tempur Sealy – Process Mapping

• UKIA – FERPA Compliance

• Kentucky Eagle – Maintenance Shop

• Central Kentucky United Way

• UKIA – Benchmarking Body Donation

• YMCA of Central Kentucky – Risk Assessment

The Project - Examples

• Ashland Inc. – SOX Tier 2

• Blue Grass Airport

• City of Austin (efficiency of street maintenance crews)

• AISD – Controls over Cash Handling of Student Lunch Program

• Texas Office of the State Auditor – Risk Assessment for E-government

• University of Texas - Mail & Supplies (efficiency and effectiveness of mailroom operations)

• City of Austin (Police Department – property room)

• Opportunities for Youth – City, County, State

Project Time Line

• Engagement Letter (week 4)

• Interview - each student (week 7)

• Written Description (week 8)

• Audit Program (week 9)

• Draft-report (week 15)

• Closing conference (week 15-17)

• Final report (week 17)

Deliverables

• Opening conference agenda

• Engagement letter

• Process map

• Risk/control map

• Risk/control matrix

• Control findings and recommendations

• Closing conference agenda

• Final written report

Evaluation

Points

Deliverables and work papers 120

Class presentations 40

Final written report 40

Team evaluation 25

Client evaluation 25

total 250

Student Auditor Expectations - UTD

Orientation

Obtain understanding of process/activity.

Work with the internal audit/client function to complete preliminary survey, risk assessment, and audit plan.

Participate in interviews.Conduct fieldwork.Assist in the preparation of the

draft report.Help present report to

area/process management.

Student Goals

Interviews and

AssignmentsOrientation Planning Fieldwork Review

Exit Conference

Presentation to Class

Final Report & Grading

Typical Project Timeline

Individual Process Analysis

• Option for students with work schedules issues

• Do a process at work or other organization to which they have access

1. Identify objectives

2. Risk analysis

3. Map process

4. Control analysis

5. Recommendations

Shadow Project

• Team 3 people

• Audit department

• Meet with CAE and Staff

• 15=20 page paper

• Have had students make videos

Shadow Project

a. Source of authority

b. How the chief audit executive is selected and removed (not only

describe but discuss the implications of the method used)

c. Mission

d. Types of audit services provided

e. Standards

f. Approach to selection of engagement

g. Reporting structure

h. Follow -up process

i. Conduct an analysis of the audit reports issues for the last 12 months. How well do the actual areas/topics of the reports compare to the function’s mission?

j. What techniques and process does the audit function use to

increase the effectiveness of its reports?

Tools

• TeamMate+• Automated work papers

• Objective, risk, control, procedures

• Issue development

• Report generation

• IDEA• Attribute sampling

• Bedford’s law analysis, duplicate records testing, graphs,

• Data preparation features

• TeamMate Analytics• Data analytic case – LAX