The Center for Continuous Auditing

1. The Center for Continuous Auditing at Texas A&M University An Alliance of Arizona State University, Bentley College, DePaul University, Indiana University, Rutgers University, Texas A&M University, The University of Texas, University of Maryland, University of South Florida, University of Tennessee, University of Virginia, University of Waterloo

2. Mission: To develop and disseminate knowledge on audit methodologies and use of technology in the continuous audit of electronic business and government processes The Center for Continuous Auditing at Texas A&M -- An Alliance of Universities

3. The Center for Continuous Auditing at Texas A&M -- An Alliance of Universities Objectives • Develop collaborative environment for research and consultation on issues of continuous auditing (both internal and external) and the transformation of the electronization of business • Support research in audit methodology and use of technology in the continuous auditing process and disseminate knowledge gained through research

4. The Center for Continuous Auditing at Texas A&M -- An Alliance of Universities Objectives(continued) • Provide a forum for academics, business, accounting and auditing professionals and government regulators to discuss current and future issues impacting audit methodology and standards • Develop instructional curricula and materials for faculty and graduate and undergraduate students

5. The Center for Continuous Auditing at Texas A&M -- An Alliance of Universities Governance and Advising Structure • Advisory Board composed of thought leaders in business, government, accounting profession and education • Board of CCA Research Fellows

6. The Center for Continuous Auditing at Texas A&M -- An Alliance of Universities Model Center modeled after governance structure of Financial Accounting Standards Board: • Funding from Foundation • Guidance from Advisory Body • Research and implementation by Board

7. The Center for Continuous Auditing at Texas A&M -- An Alliance of Universities Research Funding • Funds will be used primarily for research, with limited amount allocated to clerical tasks • Seeking long-term commitment (e.g., three to five year) from firms agreeing to provide funding • Funding not being sought from alliance universities

8. Arizona State University Bentley College DePaul University Indiana University Rutgers University Texas A&M University The University of Texas University of Maryland University of South Florida University of Tennessee University of Virginia University of Waterloo The Center for Continuous Auditing at Texas A&M -- An Alliance of Universities Alliance Universities

9. The Center for Continuous Auditing at Texas A&M -- An Alliance of Universities Research Model • Collaboration between academicians, business and practitioners • Research focus on practical application of methodology and • Proven methodology disseminated to business community and practice

10. The Center for Continuous Auditing at Texas A&M -- An Alliance of Universities Potential Research Topics: • The role of continuous auditing on investing and lending decisions • The use of intelligent agents and continuous auditing processes to predict potential business failures • The use of intelligent agents in developing artificial intelligence to recognize changing patterns in transactions as they are being processed

11. The Center for Continuous Auditing at Texas A&M -- An Alliance of Universities Potential Research Topics (continued): • The use of embedded audit modules that test the controls for all transactions as they are processed with abnormalities being compiled in a database accessible only to the auditors • The increased need for audit assurance “on demand” and/or an increased frequency of auditor reporting on information • The need for auditors’ skill sets to include a greater degree of technological proficiency

12. Questions?