HBO Accountancy Onderwijs AC overleg - docenten - data driven assurane

1. Auditing3.0 data driven
assurance
Adding Value Objectives of Auditing3.0

2. About Pieter de Kok RA
EY 1995-2005 FOUNDER CONEY 2005 - today
TUACC 2010-2014
Debate – Change -
Innovation

3. DATA DRIVEN, PEOPLE MINDED
About Coney
ADVISORY ASSURANCE ACADEMY SOLUTIONSTAX
Amsterdam - Rotterdam - Brussels

4. The End
HUMAN INTELLIGENCE BY A BOT
(laatste slide presentatie vorige week…..)

5. AUDITOR & BUSINESS
IN CONTROL

6. The changing world & assurance
• Continuous new, (and more often) data driven, go-to-
market strategies by our customers
• Continuous increase in transaction volumes & data volumes
• A new generation of (future) leaders valuing transparency
• Growing demands regulators (eg GDPR)
• Stakeholders Dilemma: Trust versus Show Me
• Fast changing risk profiles in today’s global market place
(politics, economics, technology)

7. How dynamic, adaptive, innovative, is our
current audit mindset?

9. ROBOTIC PROCESS AUTOMATION

12. the changing world of business owners …
• Decisions in milliseconds
• Fast data disclosure
• Safeguarding strategic goals
• Continued focus on critical steps operations
• Assumption data is reliable
• Algorithms replacing human interaction
• Predict workload and transaction flow

13. … and the answer of the past ”90 years”.
L i m i t e d t o N o
I n n o v a t i o n
i n A u d i t
L i m i t e d t o N o
I n n o v a t i o n
i n A u d i t
Data
Technology
Speed & Sync
Change is critical to maintain trust ... or regain?

14. OUR VISION
A platform approach:

15. So what does this mean?
Data-
Analytics
(including Machine
Learning & AI)
Process
Mining
Visualization
Story Telling & Show Me!

17. REPLACE INDEPENDENT EXECUTION OF
AUDIT STEPS BY A COLLABORATIVE
APPROACH WITH INDEPENDENT
REPORTING TAILORED TO NEEDS OF ALL
STAKEHOLDERS
To put it simple:
Vision – Collaboration – Reuse

19. 2. Understand
the business
3A. Asses minimum level
of IC
Reconsider audit
engagement
4. Rank client
1. Client
acceptance
5. Determine significant accounts and run GL
data- analytics
7. Relate significant accounts to processes &
controls
8B. Assess design & implementation relevant IC
including application controls (if possible with
process mining)
ICT Complex ICT
STANDARD
11. Perform data-validation and data-analysis
10C. Test relevant transactional controls around
variables to be used in data-analytics, if not
effective, or not rely
12. Perform other substantive procedures
13. Wrap up and evaluate the audit
6. Perform risk analysis based on the Coney
Business & Audit Canvas
Plantheauditperform
9. Evaluate level of IC
Light
10B. Test relevant application controls , if
possible with data-analytics
10A. Test relevant IT general controls
3B. Asses dependency
and complexity IT
If possible set up periodic assurance dashboard
8A. Assess design & implementation relevant IT
general controls
10E. Perform test of controls around standards
if used during audit (standard prices, standard
rebates) (SOL vs IST analytics)
Light
10D. Substantive testing of variables (IST)
used for data-analytics based on sample
(underlying support)
Light
Light
Several
Applications in
Scope
Coney Assurance 2018

20. 3A. Asses minimum level
of IC
Reconsider audit
engagement
4. Rank client
8B. Assess design & implementation relevant IC
including application controls (if possible with
process mining)
ICT Complex ICT
STANDARD
6. Perform risk analysis based on the Coney
Business & Audit Canvas
Plantheauditperform
9. Evaluate level of IC
Light
FOCUS OP ICT
10B. Test relevant application controls , if
possible with data-analytics
10A. Test relevant IT general controls
3B. Asses dependency
and complexity IT
8A. Assess design & implementation relevant IT
general controls
Light
Light
Light
Several
Applications in
Scope
Coney Assurance 2018

21. ASSURANCE EVERYDAY PLATFORM
EXAMPLE

22. Temporary Agent – Revenues 575 million EUR.
Finance
CRM
PRICING
MINIMUM
WAGES
Collective
Agreements
Social Security
& Tax rates
EASY
FLEX
HOURS
TEMP
Agreements
(buy side)
TEMP
Agreements
(sales side)
CBS
(sectortrend)
BANK
(Camt053)

24. Some advantages
• Connecting to international developments w.r.t.
integrated reporting (eg, sustainability reporting)
• Link with external databases which provide a better
understanding of the business, the risks in the industry
as well as administrative insights (transaction errors,
fraud patterns, data anomalies and breakdown of internal
controls).
• Providing deeper and more meaningful information of
finance and performance for all stakeholders.

25. WHAT DOES IT MEAN FOR AUDIT
PROFESSIONALS? CAN WE BUILT
THIS? CAN WE DO THIS TODAY?
CAN WE DO THIS ALONE?
The questions:

26. MINDSHIFT CHANGE

28. REMEMBER – AUDITING3.0 IS ABOUT?

29. CONEY DATA FACTORY: THE STORY OF THE AUDIT

30. Today: continuous
auditing using
advanced
algoritmes
analysing IST Data

34. Today: continuous
auditing using
advanced process
mining technology

35. Today: continuous
auditing using
machine learning
to audit high risk
areas
today

36. Today: working
togeter by sharing
audit findings

37. Stelling voor
Accountancyonderwijs:
In 10 jaar: continuous
auditing maakt gebruik
van SELFLEARNING
ALGORITMES.

39. Roadmap
Focusgebieden Audit
Education3.0
INTEGRATIE
DATA MINING
TECHNOLOGIE
SOFT SIDE of TECHNOLOGY
(ethiek, communicatie, wetgeving)
BOUWEN van
Algoritmes
Auditen van
Algoritmes
SAMENWERKING / VERBINDING TRAINEN
(IT security, Data Visualisation, Roboting, Hacking)
Toepassen
&
Intepreteren

40. DISCOVER YOUR DATA!

41. Thank you.
Contact details
Pieter de Kok RA
E. pieter.dekok@coney.nl
T. +31 (0)20 851 97 00
M. +31 (0)6 30438418
A. Suikersilo-Oost 25, 1165 MS Halfweg (Amsterdam)