Are you maximizing the benefits from your data (in audit) initiatives?
This article focuses on principle #3 – Maximizing the benefits of using data in audit.
This is the 5th article in this series. The four earlier articles addressed related topics:
Why this principle (3) is about maximizing benefits
You might be wondering – why is this so important that it is laid out as one of 3 key principles?
We previously explored 5 core challenges that we face in using data for assurance:
Principle 3 helps address the first 4 of these 5 core assurance analytics challenges.
[The 5th item, dealing with false positives is a separate matter. For one approach to dealing with those, this article
may help.]
Let’s explore the sub-principles and explain how they help address the 4 challenges.
3a: Sharing lessons among the team
What
Capturing and communicating information that would be useful to other members of the audit team. For example:
Why
sharing lessons helps reduce effort in future audits and serves as an accelerator for other members of the audit team.
When
During the audit for longer audits or where other relevant audits are commencing, and after the audit in all cases
How it helps
3b: Identifying other risks and opportunities
What
In using data and performing analytics for an audit, where risks and/or opportunities that are not relevant to the audit are identified, these should be captured for follow-up, reporting, planned future audits or to initiate a separate audit that had not been planned for
Why
Because the analytics involves both bottom-up and top-down analyses, such risks and opportunities are identified very often. We have an obligation to do something about it.
When
Whenever such risks or opportunities are identified – often during the audit, could also happen in wrap up
How it helps
3c: Continuous improvement
What
Use data and insights to improve the results of future audits. Use lessons learnt to improve auditor capabilities:
Why
You want to continuously improve the value that you produce, and your team’s capability levels. As you produce insights, the expectations about future insights will grow – people will expect more and expect increased sophistication.
When
Generally, after the audit, for longer audits you may be able to identify and plug capability gaps during the audit
How it helps
Overall
Are you maximizing the benefits from your data (in audit) initiatives?