. The audit division of the Houston City Controller's Office has acquired new software that puts it at the leading edge of the financial auditing profession.  “This new system provides the functionality of a computer assisted auditing tool,” said City Controller Annise Parker.  “Unlike traditional auditing practices that rely on limited samples, the use of computer assisted auditing allows extraction, manipulation and testing of unlimited amounts of data directly from multiple sources.  We will be better able to identify unusual transactions and trends that could be indicative of waste, fraud or abuse.”

The controller's office has acquired and is in the process of implementing three functional and interactive tools from ACL Services, LTD, a company with a long history of developing software for auditing purposes.  To help ensure optimal long-term benefit, the audit staff is receiving extensive training directly from the vendor.

The initial emphasis will be on transactions involving payroll, accounts payable, debit card use and accounts receivable with subsequent phases delving into testing for specific risks and assessment of performance measures.  “We are putting in place a system that provides for continuous monitoring of city financial transactions and internal controls,” said City Auditor Steve Schoonover.  “Being proactive is key to ensuring effective and efficient use of public monies.”

Controller Parker and Schoonover are working to finalize the list of audits to be completed during the city's fiscal year that began on July 1. This will be the first audit plan to include a significant focus on the use of computer assisted auditing.  Details about the FY 2010 audit plan will be released in the coming weeks.

During her tenure as controller, Parker has implemented several improvements that are saving taxpayer dollars, including a paperless payroll system and more cost-effective options for ensuring the city's auditors receive ongoing professional training.  Parker said the current economic conditions mandate that we explore every available option for saving money.

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