Analytics for Audit
- 2. Proprietary ©2019 Alteryx, Inc. GOALS OF IA WITH ANALYTICS • Better testing of controls through 100% population testing • Be more efficient in auditing controls • Develop and deploy Continuous auditing • Increase visibility to internal and external risk • Meet expectations of internal and external stakeholders • Lead a world class audit department • Stay ahead of the trends
- 3. Proprietary ©2019 Alteryx, Inc. WHY USE ANALYTIC TOOLS? • Provide support for audits • Provide data samples for audits • Use data / metrics to perform a Risk Assessment • Assist in determine data to look at prior to the audit. Risk rating of controls • Develop Continuous Monitoring applications to drive adoptions within the business.
- 4. Proprietary ©2019 Alteryx, Inc. • Data Access • Understanding where to find the data and what to get • Data is not available in electronic format • Data corruption • Reluctance to Change • Executive Buy-in for investment CURRENT CHALLENGES
- 5. Proprietary ©2019 Alteryx, Inc. OVERCOMING CHALLENGES • Data Access – assure IT read only access is required • Understanding where to find the data and what to get – work with the business to understand processes and where the data can be found • Data is not available in electronic format – leverage OCR technology to convert data into electronic format • Data corruption – normally a result of using tools to pull and convert data. Request direct access to data. • Reluctance to Change – show the value of analytics and how it improves the job function • Executive Buy-in for investment – perform a pilot with analytics to show quick wins.
- 6. Proprietary TRENDS ©2019 Alteryx, Inc. • Cyber Security Analytics (IT Audit) • Compliance (ie, FCPA, SOX) • Predictive Analytics • Cloud based data sources (API’s) • GRC / GRC • Assist and/or compliment with RPA • Key Risk Indicators (KRI’s) A LT E RY X U S E D F O R :
- 7. Proprietary CVS HEALTH BUSINESS CASE ©2019 Alteryx, Inc.
- 8. Proprietary OBJECTIVE Leverage data, analytics and technology to provide the highest level of business assurance during the audits. ©2019 Alteryx, Inc.
- 9. Proprietary ©2019 Alteryx, Inc. MINDSET Start with capabilities then deploy to audit projects Experimental Data Science Lab approach- don’t mix undeveloped capabilities with active audits Commitment Resources & funds dedicated to Analytics, Automation, RPA and AI Authority to decide our own projects Autonomy Leverage Corporate Resources Resourceful Capability based 32 4 65 OCR & encryption Unstructured data Robotics Dashboarding Self-Service Risk & predictive modeling Natural Language Processing Geospatial analytics In-database analytics Unsupervised models Intentional1 Daily scrums with 2-week sprints arranged to deliver to the customer
- 10. Proprietary ©2019 Alteryx, Inc. Audit Analytics Model DATA RPA AI+ + + DO ANALYTICS = ASSURANCE THINK ANALYZEGET VALUE
- 11. Proprietary ©2019 Alteryx, Inc. ONE AUDITOR, ONE AUDIT, ONE WEEK
- 12. Proprietary ©2019 Alteryx, Inc. T&E BUSINESS EXAMPLE Risky T&E Transaction ANALYTICS RPA AI / Machine Learning Transactions Source System Audit DW Data Enrichment - MCCs - Org Details - Demographics Data Validation Testing rules to validate the data Merchant Info Webster obtained additional details from a website about the merchant Descriptive Analytics
- 13. Proprietary ©2019 Alteryx, Inc. T&E BUSINESS EXAMPLE ANALYTICS RPA AI / Machine Learning Prescriptive Analytics Risk Scoring Prediction 20+ Audit Tests Early Warning UnsupervisedReconciliation Ron validates success of the automated feed and documents completeness and accuracy Prediction model uses historical audit findings to assess the likelihood of the transaction of being an exception Risk model uses quantitative and qualitative calculations to assess transaction risk ELI Identifies a risky transaction and sends an email with the analysis Unsupervised models create clusters of entertainment and miscellaneous expenses
- 18. Proprietary PREDICTION SCORING Case ManagementAudit Exceptions Predictive Variables Results (Risk Score) Logistic Regression Historical Exceptions Accuracy Check Model Penny (Bot gathering info)
- 21. Proprietary IN THE NEW WORLD, IT IS NOT THE BIG FISH WHICH EATS THE SMALL FISH, IT'S THE FAST FISH WHICH EATS THE SLOW FISH KLAUS SCHWAB ©2019 Alteryx, Inc. FINAL THOUGHT…
Editor's Notes
- #8: Break slide option 1