PwC s tech-enabled audit Increased quality, greater insight an enhanced audit experience

Size: px

Start display at page:

Download "PwC s tech-enabled audit Increased quality, greater insight an enhanced audit experience"

Gwendoline O’Brien’
5 years ago
Views:

1 PwC s tech-enabled audit Increased quality, greater insight an enhanced audit experience

3 At PwC, we believe the combination of humans and machines working together will enable us to achieve the highest quality audit by allowing us to do more of what we do, better. Already, digitization is helping us create new tools, new skills, and new ways of working, to give you real-time delivery, increased efficiency, valuable insight, greater transparency, and unparalleled security. And this is only the beginning. Maria Moats US Assurance Leader

We identify your priorities when it comes to the audit experience and use them to tailor our audit and

4 What matters to you Our starting point in the PwC audit is understanding what matters most to you and your organization. We identify your priorities when it comes to the audit experience and use them to tailor our audit and shape how we work with you. We constantly measure ourselves against these priorities to ensure we work together effectively. Working style Quality Efficiency and effectiveness Value and insight

Understanding your business Our award-winning data auditing tool helps build our understanding of your company s performance in real time and across your entire data set.

5 Understanding your business Our award-winning data auditing tool helps build our understanding of your company s performance in real time and across your entire data set. Halo uses data and visualization to analyze and benchmark key indicators and drivers of business performance, to identify areas of higher risk, direct audit work, and generate insights to share with you. It s fully automated, making the process faster and more efficient. We combine what we learn about your organization with our experience, industry knowledge and technology to arrive at a deep understanding of your business.

Understanding your risks Aura, our single instance audit ERP system ensures quality and consistency through every stage of the audit.

With our understanding of your business, we then carry out a thorough risk assessment, enabled by technology. This robust analysis is at the heart of every PwC audit.

0 Engagement Edit View Create DASHBOARD Manage Links Help UNDERSTAND & PLAN Risk Strategy Add Risk BP selector Attributes Select All O RISK & RESPONSE EXECUTE Controls Testing Plan Risk Clear All

6 Understanding your risks Aura, our single instance audit ERP system ensures quality and consistency through every stage of the audit. During planning, Aura plays a critical role in identifying risks, which drives the design of our audit, ensuring our teams take a consistent, focused and efficient approach to audit risk, globally. With our understanding of your business, we then carry out a thorough risk assessment, enabled by technology. This robust analysis is at the heart of every PwC audit. Stagecoach Illustrative File RISK & RESPONSE : Risk Strategy Aura 6.0 Engagement Edit View Create DASHBOARD Manage Links Help UNDERSTAND & PLAN Risk Strategy Add Risk BP selector Attributes Select All O RISK & RESPONSE EXECUTE Controls Testing Plan Risk Clear All Period-end Financial Reporting Information Technology General Controls FinancialStatement Level Risk Treasury Cash & investments Extraordinary/exceptional items may not be correctly identified or recored Impacts: Exceptional items Derivatives and Hedge Accounting Financial statments and disclosures may not be properly presented or disclosed Revenue & Receivables Impacts: Financial statement preparation and disclosures Property, Plant & Equipment Purchasing & Payables Taxes Benefits Payroll Capital & Equity Share-based Compensation Awards Period-end Financial Reporting New business process COMPLE All transactions with related parties are not identified and disclosed Impacts: Intercompany accounts, Financial statement preparation and disclosures Notes to the accounts Impacts: Financial statement preparation and disclosures Risk of material misstatement in Gain/Loss from extraordinary/exceptional items Impacts: Exceptional items Risk of material misstatement in intercompany accounts Impacts: Intercompany accounts Risk of material misstatement in investment in subsidiaries and affiliates Impacts: Investments in associates and joint ventures Risk of material misstatement in Non-operating income Impacts: Eliminating dividends Process Reference

7 Our scoping allows us to identify the most important risk areas for the audit by using Aura and other tools. It is based on a detailed understanding of: your business key megatrends your strategic agenda your most important risks Significant Key audit risks All audit risks Impact on financial statements Business risks Risk assessed with you to form a complete picture

Connected people Your team is selected to give you the right mix of relevant experience,

Technology enables them to foster a seamless working relationship.

We ll work with you using Connect, our global communication tool and your portal to the

8 Connected people Your team is selected to give you the right mix of relevant experience, industry knowledge, professional expertise, and cultural fit. Technology enables them to foster a seamless working relationship. A collaborative workflow tool allowing fast, secure information sharing. We ll work with you using Connect, our global communication tool and your portal to the audit. Connect streamlines, standardizes and automates real-time communication in the workflow between your teams and ours, 24/7, wherever you are in the world.

Centers of Excellence This secure, web-based tool ensures faster issue resolution by aggregating global and local issues and events in one place.

Centers of Excellence (COEs) have been established to handle the transactional and highly specialized work supporting the audit across a broad range of clients.

9 Centers of Excellence This secure, web-based tool ensures faster issue resolution by aggregating global and local issues and events in one place. Issues are automatically tracked and flagged so they can be identified promptly and resolved quickly. Centers of Excellence (COEs) have been established to handle the transactional and highly specialized work supporting the audit across a broad range of clients. Shifting work to COEs enables our client-facing partners and staff more time to focus on areas of higher risk or increased complexity, continuing to enhance quality and the overall audit experience. proposed Change in accounting policy p During the year there has been a change impact on the financial statements. Reconciliation Reconciling items have not been appropriately proposed. Company XYZ - France 1 Reclassification A number of balance sheet reclassificati financial statements. COEs perform detailed testing and review of specific audit areas on a centralized basis, such as account confirmation procedures, testing of account reconciliations, IT general controls and valuation of certain investments.

Digitally enabled Key technologies working together Aura, our single instance audit ERP system drives quality and consistency, with streamlined views and automation of manual processes to make your

Your own dedicated collaborative workflow site (Connect) ensures a more effective working relationship.

10 Digitally enabled Key technologies working together Aura, our single instance audit ERP system drives quality and consistency, with streamlined views and automation of manual processes to make your audit more productive and efficient. Aura can be tailored to specific scenarios, all areas can be tested, and the approach challenged, if required. Your own dedicated collaborative workflow site (Connect) ensures a more effective working relationship. Your team will be able to see exactly what information has been requested, when it s due, status, and who s responsible for providing the information. Our confirmation system automates the entire confirmations process making it more efficient, simpler and easier to use. It works for virtually all types of confirmations. Our inventory app, Count, enables detailed information to be provided ahead of the count, making it easier to get it right first time. It immediately highlights exceptions for follow-up, mitigating surprises, and on site completion eliminates duplicate documentation. Our innovative technologies deliver quality, efficiency, and insight, tailored to your technological maturity.

PwC Extract Our data analysis tool provides greater assurance and deeper insight.

Halo won the 2016 Audit Innovation of the Year for PwC (International Accounting Bulletin Awards).

Halo for Journals significantly improves risk assessment by interrogating, testing and analyzing all journals to reveal relationships and

Halo for ERP makes the risk assessment process more efficient by embedding risk assessment, automation and analysis in an end-to-end data

11 PwC Extract Our data analysis tool provides greater assurance and deeper insight. Halo tests huge volumes of business-critical data, analyzing whole populations and unlocking a wealth of insight to enhance audit quality. Halo won the 2016 Audit Innovation of the Year for PwC (International Accounting Bulletin Awards). PwC Extract ensures safe transfer, retention and deletion of data without impacting your system performance. Halo for Journals significantly improves risk assessment by interrogating, testing and analyzing all journals to reveal relationships and patterns that are truly unusual, helping us to better assess risk and focus on what really matters. Halo for ERP makes the risk assessment process more efficient by embedding risk assessment, automation and analysis in an end-to-end data auditing tool to better identify and assess risks and determine where audit effort should be focused. Halo for Investments provides high-quality analysis using high quality, extensive data sources to provide a first-rate assessment tool to support valuation audits, from risk assessment through to substantive testing.

Seeing more, sooner The combination of our people and technology enables us to

dealt with promptly and at the right level.

Aura Mobile provides real-time, on-the-go monitoring of engagement information.

12 Seeing more, sooner The combination of our people and technology enables us to identify risks sooner and anticipate problems before they occur so that they are dealt with promptly and at the right level. This enhanced understanding means fewer surprises for you in the audit. Aura Mobile provides real-time, on-the-go monitoring of engagement information. Aura Mobile s dashboard and visualization features provide important status updates, aiding in greater agility and responsiveness when on the go.

Deeper insight Every PwC audit makes a positive difference by delivering value and insight based on our knowledge and deep business understanding.

13 Deeper insight Every PwC audit makes a positive difference by delivering value and insight based on our knowledge and deep business understanding. Valuable perspectives We deliver insight through and beyond the audit to address your business issues. We give you access to the breadth and depth of our PwC network by bringing subject matter specialists to your team. This spare chair provides additional insight in the audit and shares thought leadership. Deals Risk and regulatory Fit for growth Tax Workforce of the future Megatrends Corporate governance

Continuous innovation Artificial intelligence We are currently piloting the use of AI to identify anomalies in the general ledger. Our first bot using this technology is GL.

14 Continuous innovation Artificial intelligence We are currently piloting the use of AI to identify anomalies in the general ledger. Our first bot using this technology is GL.ai winner of the 2017 Audit Innovation of the Year (International Accounting Bulletin Awards). GL.ai Specialized anomaly detection algorithms see what humans can t, analyzing every transaction, user and account in multiple dimensions to aggregate indicators of risk. Robotics Robotic process automation is transforming the world of finance, including the audit. We are developing ways of robotizing (cyber-shoring) basic audit functions previously offshored. Drones Drones will have a significant impact on operational efficiency, and we are currently looking into how they could be used in our audit approach. We are continuously investing in our audit technology and the skills of our people to keep up with the rapid pace of change. Blockchain This technology has the potential to significantly impact the audit, given the automation involved when recording transactions. We have developed the first blockchain controls framework and real-time monitoring solution. We are currently tailoring this for use in audits as clients implement blockchain in their financial processes.

15 Reimagining the audit The innovative audit technologies outlined in this guide are only the start. We are building new tools that are rich, relevant and valuable not only for the audit but in helping you build trust in new areas. In time, we will be able to assure a broader spectrum of information, predicting potential issues before they arise. We will continue to build more agile, tech-savvy teams that can respond faster and more effectively, with greater freedom to focus on helping build trust in society and solving your most important problems.