1 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation Justin Pawlowski Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation Justin Pawlowski Head of Internal Audit, ALSO Holding AG Concurrent Session 7-1 | Tuesday, 9 July 2019 | 2.15 – 3:15 p.m. Only for participants of the IIA International Conference 2019. Do not pass this document on to anybody else.
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1 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
3 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
3 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
Insertion of Robotic Devices into Human Processes
What your team looks like.
Robotic Process Automation for Auditing, in: Journal of Emerging Technologies in Accounting, KC Moffitt, AM Rozario & MA Vasarhelyi, Spring 2018, Vol. 15, No. 1.
Panel A: Abstraction of the Shape of a Typical Organizational Structure Low-level, less-skilled workers are more numerous than highly skilled workers,
resulting in a pyramid shape.
Panel B: Abstraction of the Effect of Automation on the Typical Organizational Structure
4 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
4 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
Internal Audit Department in the near Future
WORKFORCE
HUMAN
DIGITALRule-based
Learning
Reasoning
5 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
5 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
The beginning of my career as the initial starting
point for my ambition to automate audit activities
Krakow, Poland
Gothenburg, Sweden
Istanbul, Turkey
Brussels, Belgium
Vienna, Austria
Paris, France
Madrid, Spain
Emmen, Netherlands
Leeds, United Kingdom
Wroclaw, Poland
…
Bern, Switzerland
Torino, Italy
Bratislava, Slovakia
Not every audit activity was as much fun and as shiny as
the West Coast is.
Travel activity was fantastic.
But: Recurring audit procedures
were boring.
6 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
6 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
Learning Objectives
In this session, you will:
Explore areas of application for RPA in internal auditing
(RPA internal audit “bot farm”) by demonstrating different
RPA bots in action.
Discover how to lower the total cost of audit using RPA bots.
Learn how to substantiate and quantify the value-add
provided by internal auditing using RPA.
Determine the cornerstones of an RPA roadmap for IA to
realize quick wins in the short-run and additional wins in the
long-run.
7 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
7 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
Disclaimer
The views expressed constitute the opinion of the author and the
author alone. They do not represent the view and opinions of the
author’s employer, supervisors, nor do they represent the view
of organizations, businesses or institutions the author is or has
been a part of.
The material presented here is for educational and discussion
purpose only and is up to the discretion of the participant as to
how to make best use of it.
The material is only for participants of the IIA International
Conference 2019. Do not pass this document on to anybody
else.
8 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
8 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
Introduction to Robotic Process Automation1
Use Cases in Internal Auditing2
Key Success Factors3
RPA Roadmap for Your Internal Audit Function4
Agenda
9 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
9 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
Introduction to Robotic Process Automation1
Use Cases in Internal Auditing2
Key Success Factors3
RPA Roadmap for Your Internal Audit Function4
Agenda
10 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
1 | Introduction to Robotic Process Automation
Definition RPA (IEEE)
A preconfigured software instance that uses business rules and
predefined activity choreography to complete the autonomous
execution of a combination of processes, activities, transactions and
tasks in one or more unrelated software systems to deliver a result
or service with human exception management.
IEEE Working Group on Intelligent Process Automation
61 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
RPA bots working on
ERP system require
activated GUI scripting
to be robust.GUI scripting deactivated.
Allow ERP system
GUI scripting only
user-specific, not for
all users.(SAP transaction code RZ11
Profile Parameter Maintenance)
3 | Key Success Factors
6) Strive for robust RPA bots during design stage already
62 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
3 | Key Success Factors
7) Address privacy restrictions from the beginning
Principles of data privacy regulations
including a.o.:
Handling of personal data
Principle of data economy
Use knowhow from applying data analytics.
Do not generate data sets with personal data.
§
Look out for country-specific restrictions in possibility to automate validations.
Example: In Germany, there are restrictions on the automatic validation of distances
travelled by employees («Beschluss Bundesarbeitsgericht 10.12.2013-1 ABR 43/12»).For more details see my publication on https://hub.kpmg.de/cgo-magazin-compliance-2017-2?utm_campaign=CGO%20Magazin&utm_source=AEM.
63 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
3 | Key Success Factors
8) Be compliant with RPA platform’s terms of use
End User License Agreement – Example UiPath
[…]
3. THIRD-PARTY ACCESS
3.1. Outsourcing. Customer may allow its Affiliates, and third-party
contractors to operate or access the UiPath RPA Platform solely on
Customer’s behalf, but only for Customer’s direct business purposes. At
UiPath’s request, Customer will provide a list of the entities having access
to the UiPath RPA Platform in accordance with this provision.
[…]
https://www.uipath.com/legal/terms-of-use
64 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
3 | Key Success Factors
9) Combine different bots to perform audit work
Increased assurance and increased true hits (cash to be returned)
Validation of extended data set and higher number of transactions
Example: Analysis of duplicate payments not yet returned
Attachment
Downloading Bot
Data Analytics
Document
Screening Bot
Text Mining
Continuous Auditing
65 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
You come to the office on Monday morning at 8am.
By then, your RPA bots have already run. The bots ran
in the morning hours and have validated thousands of
transactions of the past week. What a great start into the
new week.
Combining data analytics, text mining, continuous auditing & RPA.
3 | Key Success Factors
9) Combine different bots to perform audit work
66 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
77 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
About the Speaker
Publications (1/2)
COSO I
Audit Quarterly COSO I – Überarbeitetes Rahmenwerk für interne Kontrollsysteme, in: Audit Quarterly, Issue III/2013, Bernd Rosenberg/Justin Pawlowski, <https://kipdf.com/queue/institute-
ev_5b3acfbd097c479b7e8b45e3.html> [German]
COSO I: Überarbeitetes Rahmenwerk für interne Kontrollsysteme – Wesentliche Änderungen und Vereinbarkeit mit COSO ERM, in: RiskNET The Risk Management Network Blog, Bernd Rosenberg/Justin
Pawlowski, August 2013, <http://www.risknet.de/themen/artikel/wesentliche-aenderungen-und-vereinbarkeit-mit-coso-erm/8a22bfddca6743c34b31eb17770a70ad/> [German]
Cash Recovery: Geld zurück durch Massendatenanalyse, in: KPMG Klardenker, Justin Pawlowski (author was changed from Justin Pawlowski to Albina Kladusak once I left the company in 2018), October
Process Mining in der Internen Revision, in: DIIR IT-Tagung 2017, Justin Pawlowski, June 2017, Duesseldorf/Germany. [German]
Process Mining Visualization – Seeing Process Inefficiencies, Control Weaknesses and Control Gaps, in: The IIA International Conference 2017, Justin Pawlowski, July 2017, Sydney/Australia. [English]
Process Mining – ein ergänzendes Instrument für die Werkzeugkiste der Revisionsfunktion, in: Haub & Partner Blog, Justin Pawlowski, September 2018, <https://www.haub-seminare.de/blog/process-
mining-interne-revision/> [German]
Mining for Process Gold – An addition to the internal audit toolkit can give practitioners a clear and objective picture of business processes, in: Internal Auditor Magazine Blog, Justin Pawlowski,
November 2018, <https://iaonline.theiia.org/2018/Pages/Mining-for-Process-Gold.aspx> [English]
Robotic Process Automation
Interne Revision und Digitalisierung – So sorgt Automatisierung für Stahlkraft, in: CGO – Das Governance Magazin, Justin Pawlowski, Issue 2, March 2018, pp. 22-27. <https://hub.kpmg.de/cgo-magazin-
Sexy but risky – Der erfolgreiche Einsatz von RPA ist kein Selbstläufer, in: Management Circle Digitalisierungs-Blog, Justin Pawlowski, May 2019, <https://www.management-circle.de/blog/erfolgreicher-
einsatz-rpa/> [German]
78 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
About the Speaker
Publications (2/2)
Robotic Process Automation
Sexy but risky – Der erfolgreiche Einsatz von RPA
ist kein Selbstläufer, in: Management Circle
Digitalisierungs-Blog, Justin Pawlowski, May 2019,
<https://www.management-
circle.de/blog/erfolgreicher-einsatz-rpa/>
Interne Revision und Digitalisierung – So sorgt
Automatisierung für Stahlkraft, in: CGO – Das
Governance Magazin, Justin Pawlowski, Issue 2,
March 2018, pp. 22-27. <https://hub.kpmg.de/cgo-
magazin-compliance-2017-2?utm_campaign=
CGO%20Magazin&utm_source=AEM> [German]
Sexy but risky – The successful use of RPA requires
to avoid making these simple mistakes
Internal audit and digitalization – The power of
automation
79 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
About the Speaker
Special Thanks
My special thanks go to
Shpetim Xhemaili, Christian Stauß and Jan Grüne for
having supported me in driving the topic of using RPA in
internal auditing back at KPMG Germany.
ALSO Holding AG for giving me the opportunity and
platform to bring in my ideas for establishing a modern
internal audit function.
IBM and KPMG for having been great employers with
excellent colleagues before joining ALSO in 2018.
The IIA for giving me the possibility to share my personal
view on internal audit matters at this conference, in the
IT Guidance Committee and in the German Chapter.
80 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
You look for a new job challenge?
Join my team in one of our European locations.
Job Description «Digital Auditor»
Design and create rule-based data analytics
focusing on adherence with internal guidelines,
effectiveness of internal controls, process efficiency and