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.
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.
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.
In my last post, I described Why Internal Auditors Should Care about Robotic Process Automation.
In this post, I’ll explore whether RPA can replace analytic packages like ACL, IDEA, R, and Power BI.
That might seem like a strange question, but a few managers and a VP have asked me just that recently. Here’s how I’ve answered it.
I was rummaging around and found some old articles by David G. Coderre, one of the gurus of data analytics (I mentioned him in my Teach Yourself ACL post). Even though this articles are old, I found some rich history, interesting facts, and some audit ideas.