IT Audit Methodologies

Isn’t it interesting?  Well, maybe not quite as much as, say, online social networking, but my PhD requires an investigation into the impact that the adoption of IFRS (International Financial Reporting Standards) means for IT audit processes within Australian firms.  I naturally assumed that ‘IT audit processes’ would be, you know, focused on those IT audit processes that are especially related to IT audit.

But I ask practitioners in the field and they consider it merely as an ‘audit’ – i.e. a standard audit methodology.

Hmmm.  This may be an issue.

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Answering assignments at a University Undergraduate level

Anyone who has been following my twitter lately will have come to the realisation that one of the things I have been doing for fun and profit lately is lecturing in IT Governance at Queensland University of Technology.

I have to say, as for the fun and profit side of things, I don’t think I can recommend it as a hobby for anyone J. Although you probably already knew that.

I have just finished marking the assignments, and what has struck me is the apparent difficulty that exists for students answering an assignment, so I thought I’d do a bit of a pointer overview for anyone who ever intends to submit an assignment to me in the future. With any luck, I’ll expand this blog post into something more by the time I get to lecture again in the subject next year.

Honestly, I think I will spend an hour in one lecture just going through this overview so that assignments (and by extension, exams) are answered well.

The following pointers are relevant as far as I am concerned if you are ever intending to provide an assignment that gets an above-average to good grade. If you follow these pointers you should at least pass the subject.

Listen to the lecturer

The lecturer wants you to do well. Certainly, I at least know that I’d rather mark good assignments than bad ones. So, attend lectures and listen when subtle (and not so subtle) hints are made regarding the assignment.

Phrases like ‘be sure to read the question’, and ‘only answer the question’ come to mind. Other magic phrases come to mind like ‘This would make a good assignment question’, and ‘Be sure to know what a <insert special word here> is’.

And turn up to lectures and asking questions is a sure way to get an insight into what the lecturer is on about. Not everything can be in the Powerpoint.

Know the marking scheme

Understand the marking scheme, and write so that you address it. For instance, with this most recent assignment, 40% of the total marks were for knowledge, 40% were for analysis, and 20% were for research and communication.

So every answer you give has to address this marking criteria.

Just so you know, Googling and copy-and-paste don’t count much as knowledge unless you’re taking a cut-and-paste class. To me, to demonstrate knowledge you have to provide some facts that answer the question, certainly, but it needs to be your own words (and back it up with research where you need to).

To demonstrate your powers of analysis, you have to answer the question ‘why’? It isn’t good enough to say, ‘do X’, or ‘this applies’ – answer the question why do it, or why does it apply? If your answer doesn’t demonstrate at least some reasoning, you’re going to be missing out on the question. This applies unless the question explicitly states you don’t need to follow the marking scheme for that question.

To demonstrate research and communication, you would firstly be expected to show that you have done some independent research. At an undergraduate level, this probably doesn’t need to be a lot, and in fact it is probably going to be ‘bad’ research. But with things like Proquest around these days there’s really no excuse not to find an article somewhere that demonstrates your point of view. Secondly, you need to write your answer in language that is grammatically acceptable. I know this is tough if English isn’t your first language, but it seems to be tough for non-native speakers as well. To me, to get the answer right, your answers need to be grammatically correct (at an undergraduate level, by grammatically correct I mean tense that is consistent, sentences that are full sentences with a subject, verb, noun, clauses, full stops – that sort of thing).

To me, given the state of the world today you don’t really need to worry too much about using active or passive voice, or even writing great prose (and to be honest, great prose is probably a communication hindrance). Good spelling is a must, but I personally wouldn’t start to ping you until I’d seen a couple of spelling errors every two or three hundred words. Beyond two it’s getting far too sloppy. Think about it – a 5-page report will be about 1,250 words – one typo every 100 words is 13 or so typos in that single assignment. I can live with that, but I can’t give you top marks.

Recall too that paragraphs are your friends, as are dot point lists. If it’s a full assignment, I suspect most lecturers won’t accept dot point answers, but if a dot point list answers the question clearly and easily, use a dot point list after an an introductory paragraph to get the facts out, and then put your analysis in paragraphs.

Format and technical issues

If you have a word limit, stick to it (at least within coo-ee of the word limit, please – more than 10% over the limit is probably going to be a problem for you, not me). To make your case about how you stuck to the word limit, I’d put the word count at the beginning of the assignment, smack dab on the front page.

Have a cover page, headers and footers, and, if your assignment has an appendix, a table of contents is appropriate as well. It will depend on the marking scheme as to whether this affects your mark, but in professional life as well as academic life the ‘duck theory’ applies: if it looks like a duck, walks like a duck, and sounds like a duck, it’s a duck. Make sure the assignment looks the part.

Be sure to give the assignment a good re-read prior to submission to check for spelling errors, word usage, and complete sentences. This means finishing the assignment 48 hours beforehand, letting it sit, and then re-reading it so you’re not so close to the assignment.

Oh, and make sure that little things like page order are done properly, and don’t forget to add your appendices in!

Read the Question

You need to be sure that your answer is actually answering the question that has been asked. This is particularly important when you have a restrictive word limit. Don’t spend a great deal of time defining a term when the question did not ask you to. This can demonstrate knowledge, but will never address analysis and evaluation capabilities, particularly when the definition is virtually copied and pasted.

Be careful that you don’t give the right answer for the wrong question. You can give a good answer, but if it does not answer the question actually asked you will do poorly.

Be certain that your answer addresses the requirements of the question. In answering a question, focus on the verbs that request you, as the student, to do something. Consider the following question:

1. Outline the importance of IT governance to Australian business organisations by accessing current IT governance research. Assess the overall IT governance of Mudflat Plains City Council and provide recommendations regarding steps the organisation could take to improve its IT governance processes.

To do well, the answer had to use words like ‘IT Governance is important because <insert reason>’. Research should be cited too in making this answer (given that the question asked you to do this by ‘accessing current IT Governance research’).

An assessment needed to be provided of IT Governance (e.g. ‘In my assessment IT Governance at MPCC is level 2 in accordance with the maturity model because <list some reasons why>’. Finally the answer needed to provide reasonable steps that could be taken to improve MPCC’s IT Governance processes.

Defining IT Governance is vaguely useful to the answer, but not much, and is not worth spending a great deal of time on as it is not requested in the answer.

I really hope that this helps some students with preparing an assignment at a University level.  I can see that next year I am going to devote a chunk of time to preparing an assignment.

Session Review – AIFRS and beyond: contentious and emerging issues in accounting standards

I had the honour of chairing Richard Wanstall’s session today at the Brisbane Convention Centre on the topic of AIFRS. Richard is the lead partner for the Accounting Advisory Services Group for Deloitte, and addressed the following issues in his presentation today:

The agenda addressed included the following:

  • Current changes in financial reporting
  • Impact of new standards in 2008
  • Lessons learnt from June 2008
  • On the horizon
  • Over the horizon

I liked how Richard distinguished between what’s ‘on’ the horizon and what’s ‘over’ it!

Richard did have a lot of references to standards I haven’t looked at in years, so I was not able to follow all of it (my fault, not his!), but it was interesting to hear that the Australian version of IFRS seems to be moving back towards the IFRS Standard (a little, anyway) and that the Australian version is being modified so that we are really ending up with multiple GAAPs depending on the type of entity (e.g. not-for-profits etc).

I must admit that I am also a little concerned to hear that IASB are thinking of extending IFRS to SME’s in some way. I can’t believe that that’s going to reduce compliance costs for anyone. Not, I am sure, that that was the point.

The ‘lessons learned’ part of the presentation detailing key misunderstandings of IFRS was very valuable, as were the ‘on the horizon’ and ‘over the horizon’ sections. I think these last two sections suffered a little as Richard was running out of time. Also they don’t consider the presenters when they go and have economic crises – Richard’s slides were still referencing interest rate increases (which since about last week we now seem to think are off our agenda). In the current environment it seems your slides will be out of date by morning tea!

As for the over-the-horizon issues, I was stunned to hear of potential modifications to lease agreements (bring operating leases onto the balance sheet? Sacrilege!).

As for the overall session, the facilities are excellent as is to be expected at the Brisbane Convention Centre, and the audience was very good. I thought the Chair was a bit ordinary – seemed to think he was funny and forgot to introduce himself (I can say that, as I was the chair!) :).

Richard’s session was very informative and helpful, and Richard clearly knows his stuff. These days, I think I’m doing pretty well if I remember what IASB stands for.

I think the session was hampered by the fact that slides weren’t provided prior to the session (apparently they’re coming), and I think this is particularly helpful if you have a great deal of technical detail to talk to. Something for me to remember next time my sldies are running late.

I do think there was a great deal of information that was provided as a list of changes; I think that as a result of not having slides provided to the audience Richard was compelled to give us an opportunity to absorb the information presented. As a consequence, we didn’t get to hear as much from Richard as to what the implications of the changes actually were – Richard has a lot to add in that space and I think we simply ran out of time.

I liked how Richard was able to answer the only question I could come up with – whether there was an impact on accounting information systems, and Richard was straight onto that one immediately. I hope that made some members of the audience sit up and think about what these AIFRS changes might mean for their accounting systems.

A good session, well worthwhile attending. Richard’s a good presenter and knowing how much time it takes to put those slides together, I know that a lot of work went into preparing for this presentation. Very much appreciated, and I certainly got something out of this very valuable session.

I have some photos of the venue but this computer in the presenter’s room doesn’t have an SD card reader so I’ll add them later. 

Communicating financials to management: developing effective reporting mechanisms

Back in August I gave a presentation entitled as above for CPA Australia.  I seem to have neglected to upload the powerpoint and speaking notes.  This post addresses that oversight.

See below for an overview of the presentation.

Presentation overview

The need to communicate complex financial information to management need not be an onerous task. Indeed, the ability to simplify this information and turn it into a strategic tool is becoming a greater priority in many organisations.

This session will explain:

  • How to develop effective reporting mechanisms that ensures data of high integrity and quality
  • Responding to management information needs – how to develop a process that ensures timely response
  • Other key reporting and systems issues that affect how information is presented and used

Further details are contained in the downloadable attachments.

Feedback on ‘Communicating financials to management: Developing effective reporting mechanisms’

Back in August, I gave a presentation for CPA Australia at Royal on the Park, which had as its objectives:

  • How to develop effective reporting mechanisms that ensures data of high integrity and quality
  • Responding to management information needs: how to develop a process that ensures timely response
  • Other key reporting and systems issues that affect how information is presented and used

I note incidentally that I haven’t posted my speaking notes online yet – I must do that.

Anyway, feedback was good, even if I’ve not picked up any clients out of it :).  Here is the feedback the presentation received:

Session Title:    ‘Communicating financials to management: Developing effective reporting mechanisms’
Venue:     Royal on thePark, Brisbane
Date:     26/8/2008

Your overall Rating:    4.35
Technical Content rating:    4.52
Presentation Material rating:    4.43

All comments specific to your presentation

  • Good presenter. Liked the way he asked what people wanted out of session & made sure he covered those points.
  • Very good presenter. Showed a great awareness for presenting on & answering what we wanted to get out of the session. Terrific.

I continue to thank Alan Anderson for showing me his tactic of plain old ‘ask the audience what they want’ for presentations.  The audience, not surprisingly, always seems to appreciate it, and it’s hard to miss the mark if you can at least link back to those dot points.

Of course, if someone comes in for the wrong session it can be very entertaining.

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