If YOUR audit department doesn’t embrace data, analytics, and automation eventually, your audit department will NOT exist.
No data, no analytics. No analytics, no automation. Eventually, no audit department.
Editor Note: This post really applies to all departments in a company, but mainly I’m addressing auditors, but you might want to read between the business lines….
By embrace, I don’t mean have one or two auditors working on this. I mean the entire department.
Before you cite all the regulatory requirements mandating the existence of an audit department in companies, having an audit department in name only won’t cut it.
Having an inept audit department will not be acceptable to regulators, and it shouldn’t be acceptable to company management either. Or Audit Committees!
Companies need skilled and efficient auditors that can do the heavy lifting, and this need will only increase.
Some Chief Audit Executives (CAEs) and audit managers tend to think that audit automation is a set-it-and-forget-it process. NOT.
In this post, I want to expand on a problem I mentioned in an earlier post , 10 Signs Mgmt Doesn’t Really Support Analytics.
Audit management too often thinks that once a process or an audit is automated, ALL auditor/staff hours previously spent performing that process can be reassigned elsewhere.
That is not the case at all.
Quiz yourself to discover how much you know about fraud investigations.
While you may not be tasked with leading an investigation, you might need to work with those working on such an investigation. Either way, do you know the basics?
This quick, 5-question quiz from the Journal of Accountancy will indicate what you know AND what you don’t. And whether you get each answer right or wrong, the answers provide additional information. Continue reading
Filed under Audit, fraud, Free
If your department doesn’t track metrics on your analytics, you are probably not doing analytics or you are making little progress in analytics.
In either case, its obvious that analytics isn’t very important to your management.
Which is one of the points I made in my post, 10 Signs Mgmt Doesn’t Really Support Analytics.
So far, I have encountered very few audit departments that track meaningful metrics about their analytics.
Counting the number of projects that include analytics isn’t enough.
Passing the CISA exam does not make you a good IT auditor anymore than passing a driving test makes you a good driver.
Passing either exam says that you know the basics, but you still have a lot to learn.
Previously I wrote Will Robotics (RPA) Replace ACL?
The short answer is no, and I describe the reasons in that post.
But that doesn’t mean someone won’t try.
Shortly after I wrote my original robotics post, I encountered robotics vs. ACL, part 2.