Redesign the audit program by embedding emerging technologies such as AI, blockchain, big data, analytics and RPA. Most of the audit processes can be streamlined easily using intelligent automation.
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A flawed audit program design defeats
the very purpose of audit
Gathering sufficient audit
evidence due to lack of a
robust document
management process
Increasing complexity in
financial reporting due to lack of
process and procedures
Gathering sufficient audit
evidence due to lack of a
robust document
management process
Lack of a workflow within
various functions make systems
disparate
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Easily adaptable audit procedures
for Intelligent Automation
Document and
evidence
management01
Interactions with
GRC platforms and
other automated
tools and platforms
04
Artifact
gathering02
Follow-ups and
reminders05
Verification and
validations of
artifacts03
Issue reporting
and response
validation06
Initial report
generation07
Remediation status
checks and
follow ups08
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Business Controls
Controls are consistent repeated activities involving logs and
documentation and hence a great candidate for automation. Execution of
various checks and balances can be automated to make it more efficient
and effective.
For example, reconciliations, post-transaction checks/validations, online
transactions, etc. if done manually takes considerable effort, but once
automated they can be tested and reviewed real-time or through
scheduled activities using Intelligent Automation (IA).
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Control Testing
Evaluating a control’s operating effectiveness by performing periodic
management testing can be made more frequent with RPA. With manual
testing the efficiency of controls testing is less due to high volume and
inadequate samples . With automated testing, full populations of data
rather than sampling can be tested which will result in greater confidence
on the controls. Pre-defined testing plans and test scripts can be executed
via automation.
In the event of a control deficiency, it can be intimated to get real-time
results. Remediations that require continuous follow ups for a longer
duration will yield greater results with IA.
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Compliance Testing
IA can be used in in compliance tests in order to be assured that the
evidence being reviewed as part of an audit is valid. This involves
reviewing documentation and validating the data from event logs to see if
procedures have been followed correctly.
For example, in case of a revenue audit, auditors can make use of an
Intelligent Automation program to automatically match purchase orders,
invoices, and shipping documents. The program can check that the price
and quantity on each of the documents match.
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Monitoring and Surveillance
Detection of alerts and prioritizing them based on certain logic assigned
through automation makes it easier for a focused alert investigation.
Robots also makes monitoring easy to identify suspicious and unknown
patterns of activities.
Through RPA, system tests, test data execution, scripted test runs, log
verification, etc. can be automated and run real-time to attain immediate
detection capabilities.
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Fraud Detection
RPA with cognitive capabilities could be used for detecting and curbing
fraud effectively. Information that may be subject to manipulation are
identified as and verified using AI methods.
Validation of data and signature authenticity can be verified. Some of the
tests are signature color test, text test, cut & paste test, uniformity test,
test for broken digits, textured background and unaligned text etc.
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Benefits of Intelligent Automation in Audit
Greater coverage Increased
visibility for audit
Ability to provide more
real-time monitoring
Reduced cycle
time for audit
Reduced manual effort
Cost saving Quality enhancement Risk reduction Increased
risk intelligence