© Institute of Internal Auditors 2019 CONNECT WITH THE IIA ... Presentations/Expan… · Audit plan. Planning an audit. Audit programs • Review all the audits in the audit plan

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Expanding Audit Analytics CoverageKEN PETERSEN / PRODUCT MANAGER, TEAMMATE ANALYTICS

APRIL 1, 2019

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ObjectiveUnderstand the value of performing analytics on as many audits as possible and how your organization can achieve this


The First Camera


Before Photography


Early Cameras


Later Cameras


Digital Photography


Quantum Shift


Significant Market Changes


So What?What does that have to do with Audit Analytics?

There is a Quantum shift happening in Audit related to analytics

Upper management expect findings are supported by dataSupport◦ More and more business decisions / business cases require data to support the case◦ More analytics tools/information within business (and consumer) applications◦ More user friendly reporting and analytics applications


Why?1) Finding money

2) Increased assurance and reduced risk

If you were the CAE / Director of audit presenting your findings, would you like to have data to backup your findings?


Customer Story2014: 25% of audits were supported with analytics

2017: 63% of audits were supported with analytics

150% increase or 2.5 times as many audits contained analytics


Audits per Year

Initial Audits with

Analytics

Future Audits with

Analytics Net Gain20 5 13 840 10 25 1560 15 38 2380 20 50 30

100 25 63 38

Would your CAE/Audit Director be interested in this kind of change?

Where do we start?Verify the completeness and accuracy of the file where you are pulling a random sample of 30

Policies and Procedures

External Sources


Audit Analytics Quantum Shift1 auditor performs all of the analytics for all audits


CoE

Audit Analytics Quantum ShiftAll auditors perform analytics on their audits


Audit Analytics Quantum ShiftAll auditors perform analytics on their audits with champions for guidance


Our auditors can’t do analyticsRequires programming skills

Requires database skills


Practical Examples

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DEMOOverview

How do we get there?


Develop a vision & plan

Set a clear vision for the end-state and a plan toward

getting there, then communicate it

1



Get buy infrom the top

Make sure the CAE is fully bought in and voices his

support

2



Determine‘success’

Set targets and design KPIs around them to monitor

progress

3



Appointa lead

One central person responsible for coordination and driving

usage

4



Appoint Champions

Trained team members to drive usage on each audit and provide

support

5



Providetraining

Provide an appropriate level of training for champions and users

6



Identifyquick wins

Use a few simple areas or toolsto build momentum and

demonstrate initial success

7



Share ideasand successesEncourage experimentation and

collaboration, share ideas and examples of analytics usage

to build enthusiasm

8



Incorporate analytics into planning

Ensure that analytics are considered early in the audit planning process

and baked into audit programs

9



Audit plan

Planning an audit

Audit programs

• Review all the audits in the audit plan• Which of these audits might have a transactional or data component?• Ensure that analytics are considered as part of planning the audit

• What data might exist for this audit area?• How could this data help us to meet the audit objectives?• Request data that would be helpful in advance

• What tests can we to perform on the data?• Which of these tests can help us to meet the audit objectives?• Ensure these tests are included in the audit program



Mandate use orprovide incentives

Consider linking each individual’s usage to their performance targets and bonus, or ensure audits not using analytics have to

be approved

10

Questions and Answers?

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Thank you for your time and attention!

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