Scribd
Upload
33 views3 pages

The Role of Big Data in Auditing and Analytics

Uploaded by

Marcos Toti
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
33 views3 pages

The Role of Big Data in Auditing and Analytics

Uploaded by

Marcos Toti
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 3

The Role Of BigDataInAuditingAndAnalytics

Big data is the new wave that’s taking over company operations by storm. Businesses
that are able to leverage the volume, variety and velocity of big data can make better
decisions, reduce operational costs, and keep up with evolving customer demands. Big
data is being used in many different sectors. From manufacturing to banking and supply
chain management, the ability of companies to collect and analyze data in real-time is a
valuable asset that drives growth.
Unfortunately, the auditing industry has been left behind when it comes to big data and
analytics. Both internal and external auditors haven’t fully leveraged real-time data
insights to manage compliance and ensure that businesses are harnessing the full value
of their potential. There are multiple uses cases for big data in auditing. By collecting
information regarding past events, predictive and prescriptive analytics can be used to
estimate the likelihood of future outcomes. Furthermore, auditors and other stakeholders
will have a higher level of confidence when it comes to analyzing the effectiveness of
specific company operations.
The role and applications of big data in auditing can be challenging to visualize. This
piece will explore how big data can be applied to streamline the auditing process.   
 
The Benefits of Using Big Data In Auditing
Many stakeholders don’t view the auditing process as applicable during big data
analytics. However, real-time data analysis can be applied in many different ways to
benefit auditors. Auditors can use big data to expand the scope of their projects and
draw comparisons over larger populations of data.
Because big data involves the use of automation and artificial intelligence, data can be
processed in larger volumes and higher velocity to uncover valuable insights for
auditors. For example, previous cases of non-compliance, current policy changes, and
fraud can be identified and used to guide the focus of both internal and external
auditors.
Big data is also helping financial auditors to streamline the reporting process and detect
fraud. These professionals can identify business risks in time and conduct more relevant
and accurate audits.
Even before you can take advantage of analytics during auditing, you need adequate
data management and aggregation processes in place. All data sets being analyzed for
the purpose of auditing first need to be checked for accuracy, timeliness, and capacity.
In this way, the downstream decisions that auditors make are based on reliable and
high-quality information. This is particularly important when it comes to auditing
because decisions regarding compliance, risk, and investment are typically made after
audit reports are prepared.
Big data also allows you to automate multiple portions of the auditing process. Human
error is a common reason why businesses fall out of compliance or spend too much on
audit-related requirements. By automating manual and repetitive tasks, auditors can set
up various controls in advance and monitor how well a company is adhering to
established guidelines.    
 

How Big Data Can Be Used To Streamline Auditing And Analytics


The applications of big data in auditing are widespread. However, many companies
haven’t figured out how to fully leverage the power of big data to make auditing more
accurate, more reliable, and less costly.
The best way of taking the next step in big data is by starting on the right foot. You
need to be able to collect, aggregate, and analyze data in a manner that provides
valuable insights. You also need to devote adequate resources to the support of internal
auditing tasks. For example, providing access to critical data and collaborating with
multiple departments will help auditors prepare more accurate, dependable, and timely
reports.
If leveraging big data for auditing is your primary objective, consider following these
steps.
 

•  Start with an end goal


Even before setting up algorithms or statistical models for analyzing audit data, you
should first determine what your end goals are. Senior management and internal
auditing staff should be involved when making decisions regarding an internal audit.
 

•  Develop teams with adequate resources and technical skills


The next step is to identify any gaps in infrastructure and manpower. You may need to
hire talent that can analyze data in real-time and help manage large information silos.
You should be prepared to provide adequate support, including training and robust
methodologies that can be repeated multiple times down the road.
The benefit of having a reliable method in place is that you can strategically implement
analytics into each step of the process. In this way, you can automate mundane tasks
and use artificial intelligence to make more informed business decisions.

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy