Once your audit team has proven the value of doing analytics consistently, the next question is: Do we create an analytics team and have the team do all (or the majority) of the analytics?
Or should we expect all auditors to develop some levels of analytics proficiency?
Of course, this question often comes a bit further down the trail on the analytics journey, but I think the sooner it is decided, the better.
This is the first post of a 3-part series…
Here’s the 5 things I’m hoping will change in 2018 regarding ACL.
They are all related to each other and feed off each other…
A recent IIA article on building an analytics function in internal audit is dead wrong.
At least on one major point, anyway. And it’s a big one.
As the tombstone reads, this point is D.O.A (dead on arrival, or more specifically, dead on analytics).
The article, Building a data analytics program, requires IIA membership to view, and is located at https://iaonline.theiia.org/2017/Pages/Building-a-Data-Analytics-Program.aspx (that’s actually good, as it means a lot fewer people will ever read it).
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.
To create a successful analytics program in internal audit, you must have a plan. A plan that points to analytic North.
That requires WRITTEN goals.
In an earlier post I outlined 10 Signs Mgmt Doesn’t Really Support Analytics.
One of the signs that indicates management isn’t really serious about analytics is that management does not require every staff member to have measurable analytic goals.
Your management says it wants more analytics, but does it really support analytics? Here’s 10+ signs that indicate that your mgmt:
- Does NOT knows what it takes to get analytics off the ground
- Believes that analytics multiply like rabbits, naturally
- Is NOT willing to make the adjustments required to deliver and sustain real value.