7 of 11,402 credit memos processed without secondary approval; $1.9M gross, $0.4M net exposure, below materiality. Monthly revenue analytic review detected 5 of 7.

AP-309Sep 18Audit plan

FY27 annual audit plan

Avery (CAE Agent) recommends: Approve 24-audit plan, scenario B

Covers 78% of high-risk universe in 11,400 hours; defers two low-risk operational audits to FY28 to fund a cybersecurity review.

AP-308Sep 19Scope decision

SOX scope — Cerritos manufacturing location

Morgan (Audit Manager) recommends: Bring in scope for inventory controls

Location now 11.4% of consolidated inventory after the Halcyon acquisition, above the 10% coverage threshold in methodology §4.2.

AI vs. human hours

Weekly audit hours executed

512

604

688

742

806

871

AI agents Human review

Q3 SOX testing

94 of 128 controls tested

Order to Cash34/38

89%

Procure to Pay22/31

71%

Financial Close21/27

78%

Inventory9/24

38%

ITGC19/25

76%

Entity level8/8

100%

AI audit team — live activity

Activity center →

Task	Agent	State	Progress	Updated
Test RCM control R2C-014 — Credit memo approval Objective: Complete Q3 SOX testing	Tessa Staff Auditor	Executing	72%	2 min ago
Investigate exception EX-119 across full population Objective: Complete Q3 SOX testing	Nova Specialist	Executing	54%	6 min ago
Evaluate severity of exception EX-119 Objective: Complete Q3 SOX testing	Morgan Audit Manager	Awaiting human	90%	18 min ago
User access review testing — NetSuite privileged roles Objective: FY26 ITGC coverage	Rowan Senior Auditor	In review	100%	42 min ago
Draft annual audit plan with resource scenarios Objective: FY27 risk-based audit plan	Avery CAE	Awaiting human	100%	1 hr ago
Vendor master data walkthrough with Procurement Objective: Supply chain audit	Kai Staff Auditor	Awaiting human	35%	2 hrs ago

Follow the lineage

Q3 credit memo exception

Risk R-01→Control R2C-014→Evidence EV-2041→Sample 4→Exception EX-119→Deficiency DE-31→Your decision→Finding F-2074→Reporting

Nova · Data Analytics Agent

Expanded to 100% of FY26 Q3 credit memos: 7 of 11,402 bypassed approval, all created from the returns queue after the August workflow change.

Change intelligence

Signals the team acted on

Credit memo workflow modified in NetSuiteHigh

Exception EX-119 traced to this change

Halcyon Photonics consolidated into inventory reportingHigh

Scope decision AP-308 raised

NetSuite release cadence moved monthlyMedium

Sample increased from 25 to 40

New entity list restrictions publishedHigh

FY27 audit recommended

Active engagements

All engagements →

Engagement	Phase	Progress	Hours (AI / human)	Issues	Status
Q3 FY26 SOX Testing — Order to Cash ENG-101 · Morgan (Audit Manager Agent)	Fieldwork	74%	806 / 112	3	On track
Q3 FY26 SOX Testing — ITGC ENG-102 · Morgan (Audit Manager Agent)	Review	88%	654 / 88	2	At risk
Supply Chain & Third-Party Logistics Audit ENG-103 · Priya (Audit Manager Agent)	Fieldwork	52%	254 / 64	2	On track
Cybersecurity Privileged Access Review ENG-104 · Priya (Audit Manager Agent)	Fieldwork	41%	158 / 38	3	On track
Halcyon Integration Readiness Review ENG-105 · Priya (Audit Manager Agent)	Planning	18%	48 / 14	0	On track