Integra(ng Data Analy(cs into a Risk- Based Audit Plan. Presented by: Andrew Simpson, MBA, Chief Operating Officer, CaseWare Analytics

Transcription

1 Integra(ng Data Analy(cs into a Risk- Based Audit Plan Presented by: Andrew Simpson, MBA, Chief Operating Officer, CaseWare Analytics

2 Drivers of Risk Management Risk is high on the agenda for boards today due to: A focus on cost reduc(on A desire for added value An evolving regulatory environment Technological changes and availability of data

3 Stakeholder Percep(ons The overwhelming opinion of 1,700 execu(ves par(cipa(ng in the both the 9 th and 10 th annual PwC State of the Internal Audit Profession Study is that internal audit needs to reach for new heights and contribute to the organiza(on in a more meaningful way. Source: PwC 2014 State of the Internal Audit Profession Study

4 A Visionary Approach to Risk The Building Blocks to Successful Risk Management

5 Where Do You Want to Be? Source: IIA, Pulse of the Profession, Defining Our Role in a Changing Landscape Report

6 A Visionary Approach Crea(ng a visionary approach to risk is: Not just about technology Applicable to all levels of a business A maser of culture and philosophy Integrated into how things are done everyday

7 Building Blocks Visionary Leadership Stakeholder Sa(sfac(on Best Prac(ces and Efficiency Staff Development Risk- Based Audits Results Focused Analy(cs

8 Building Blocks Visionary Leadership

9 Paving the Pathway to Success To have a visionary team, you need a visionary leader. But there will be challenges in forging this new path: Internal Challenge External Stakeholders Innova(on and Technology

10 Building Blocks Visionary Leadership Stakeholder Sa(sfac(on

11 Becoming a Trusted Advisor Source: PwC 2014 State of the Internal Audit Profession Study

12 Building Blocks Visionary Leadership Stakeholder Sa(sfac(on Best Prac(ces and Efficiency

13 Broadening the Audit Landscape A comparison of the average audit plan composi(on between 2013 and 2014 shows that in very lisle (me, the coverage of internal audit is broadening dras(cally. Internal audit is now expected to allocate more (me to business strategy, risk management effec(veness, and governance than ever before. Audit Plan Coverage in 2013 vs. Audit Plan Coverage in 2014 Source: IIA, Pulse of the Profession, Enhancing Value Through Collaboration

14 Building Blocks Visionary Leadership Stakeholder Sa(sfac(on Best Prac(ces and Efficiency Staff Development

15 Building a Team of Experts Gaining value from an investment in people and technology is a top priority when building your audit team. Effec(ve data analysts are those who demonstrate cri(cal thinking. Source: IIA, Pulse of the Profession, Enhancing Value Through Collaboration

16 Building Blocks Visionary Leadership Stakeholder Sa(sfac(on Best Prac(ces and Efficiency Staff Development Risk- Based Audits

17 Adapted from: EDPACS, 2014, Performing a Strategic Risk-Based Assessment

18 Building Blocks Visionary Leadership Stakeholder Sa(sfac(on Best Prac(ces and Efficiency Staff Development Risk- Based Audits Results Focused Analy(cs

19 Results Focused Analy(cs: Using Insights to Drive Results in Risk- Based Audits

20 Source: EDPACS, 2014, Performing a Strategic Risk-Based Assessment

21 Data Analy(cs from End to End The first step to effec(vely incorporate data analy(cs within your audit process using a risk- based approach is to begin with the audit plan. Using data analy(cs during your audit plan will help to: Focus your audit. Allocate resources effec(vely. Save (me (less (me onsite). Learn more about the business.

22 Risk and Controls Assessment Purchasing Card Example:

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25 Data Analy(cs from End to End In the execu(on phase, it is important to analyze 100% of the data during your audit execu(on in order to: Eliminate sampling risk. Report on validated insights. Save (me. Address control deficiencies. Establish a root cause analysis.

26 Next Steps Using data analy(cs from end to end within the audit universe requires a con(nuous stream of analy(cs processes. While not en(rely the final step, using analy(cs within your audit report is important in gaining alliance with corporate stakeholders. Your audit report should: Contain validated deficiencies. Highlight root causes. Provide recommenda(ons. Be clear and understandable.

27 Moving Forward: Data Discovery We currently use data as a tool to display findings in a unique and easy- to- digest format, but the future of audit lies in the ability to use visual data discoveries to enhance your audit poten(al and enable you to: Visualize frequencies and anomalies. Probe further into visual discrepancies. Visualize a more in- depth picture of a controls framework.

28 Summary Be crea(ve about how you approach data analysis. Invest in the people and tools necessary for success. Provide value for management from data analy(cs. Eliminate sampling risk. Use data analy(cs to scope audit engagements.

29 About Us - CaseWare 27YEARS EXPERIENCE 400,000+ USERS 130 COUNTRIES 16 Languages FINANCE ACCOUNTING GRC

30 Ques(ons? Andrew Simpson, MBA, Chief Opera(ng Officer CaseWare Analy(cs