It has been said that the definition of crazy is doing the same thing over and over again and expecting a different result. If your audit analytics program is still not meeting your expectations, you are going to have to do something different to change that outcome. The biggest hurdle organizations need to overcome is getting auditors to think differently about what analytics is. Excel might not be the ultimate analytics tool for your organization but attend this webinar to see how you can use it as a catalyst for change throughout the audit team.
Learning Objectives
Learn non-technical skills auditors need to perform audit analytics
Learn commonly used Excel functions that can be applied to audit analytics
Learn how to get auditors started down a path of thinking about analytics vs automatically pulling samples
How to get auditors performing basic analytics using excel
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How to get auditors performing
basic analytics using Excel
A first step to getting them doing more and
deeper analytics
Ken Petersen
April 2020
About Jim Kaplan, CIA, CFE
President and Founder of AuditNet®,
the global resource for auditors
(available on iOS, Android and
Windows devices)
Auditor, Web Site Guru,
Internet for Auditors Pioneer
IIA Bradford Cadmus Memorial
Award Recipient
Local Government Auditor’s Lifetime
Award
Author of “The Auditor’s Guide to
Internet Resources” 2nd Edition
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About AuditNet® LLC
• AuditNet®, the global resource for auditors, serves the global audit
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Introductions
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IMPORTANT INFORMATION
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Ken Petersen
• Currently Product Manager of TeamMate
Analytics
• 25+ years developing and implementing
systems
• In the Governance, Risk & Compliance
space since 2002
• BSBA from Ohio State, MBA from University
of Dayton, PMP certified
• ken.petersen@wolterskluwer.com
www.TeamMateSolutions.com 7
Learning Objectives
How to get auditors performing basic analytics using Excel, as a first
step to getting them doing more and deeper analytics
In this Webinar, attendees will:
- Learn non-technical skills auditors need to perform audit analytics
- Audit analytics is about much more than technology
- Learn which commonly used Excel functions can be applied to audit analytics
- We are not learning new Excel functions (hopefully)
- Learn how to get auditors started down a path of thinking about analytics vs
automatically pulling samples
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Data Analytics is Underutilized
Audit shops relying on one/few
specialized data analytics staff are
not telling the complete story
CAE: Is this a level of risk you are
willing to take?
Should we just ask the DA
person/team to do 200% more
work?
Key Success Factors for your Data Analytics Program 9
Annual Audits
Currently
Applied
Not
Applicable
Missing
Data
Analytics
Currently
Applied
Not
Applicable
Missing
Data
Analytics
Currently
Applied
Not
Applicable
Missing
Data
Analytics
Who is on the audit team
- Data Analytics
- CPA
- Operations
- English Literature college major
- Many years in audit
- Straight out of college
Most audit teams are diverse, intentionally, and that’s good.
So let’s not try to make everyone a data analytics guru
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Demonstration
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Figure out the “What” before the “How”
What do we want to understand to meet the Audit objective?
What does it mean to sample and the “look at” the records
Break this down into specifics and write them down
Test based on existing policies and procedures
Use test libraries for example tests
Google for ideas to test
Talk to colleagues at other organizations, network in professional
organizations
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POLLING QUESTION 3
Data Analytics for Sampling
Many people are resistant to change
Many auditors are fearful of “Analytics”
Make “Completeness and Accuracy” checks an initial step of sampling
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Our auditors can’t do analytics
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Requires database skills
Requires programming skills
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Desiretochange
Difficulty of changing (perceived /real)
When change occurs
How do we change
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Change
No Change
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How do we change
Change can have a chain reaction
Change can be temporary or lasting
Other factors and people can influence our desire to change and difficulty
of change
The desire to change and the difficulty of change can change over time
Change can have side effects, good and bad
Our documentation improved because of analytics
Employee satisfaction increased when they started doing analytics
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Priorities
Start with the “What” then focus more on the “How”
1. Focus first on Completeness and Accuracy, as a part of the sampling
process
2. Next ask to define what “looking at the sample” means, specifically.
Write it down, then evaluate if it can be done with existing Excel skills
3. Start making analytics a part of your process on every audit
4. Expand technical skillset, introduce additional tools
5. Get data that you haven’t gotten in the past
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