Successfully expanding your data analytics program. Stefan Davis MEng MBA Product Owner - TeamMate

Transcription

1 Successfully expanding your data analytics program Stefan Davis MEng MBA Product Owner - TeamMate

2 Stefan Davis Product Owner for TeamMate Analytics

3 1. Why do we need to expand our data analytics program?

4 Audits using analytics 18 % 14 % 26 % 75% to 100% 51% to 75% 26% to 50% What percentage of total audits utilize some form of data analytics? 42 % 1% to 25% Source: Protiviti Internal Audit Capabilities and Needs Survey 2017

5 Current Internal Audit analytics capabilities 7% Advanced Standard methods and training, using advanced tools and analysis techniques 24% Intermediate Some standardization of methods, some repeatable analytics 55% Basic Ad-hoc analytics with limited repeatable solutions, basic tools (e.g. spreadsheet, etc.) 11% None No analytics capabilities 3% Not sure Source: Deloitte s Global Chief Audit Executive Survey

6 Current deployment of analytics 66% 37% 32% 25% 23% 19% 10% 2% 2% Fieldwork Scoping Annual planning Continuous auditing Reporting Continuous risk assessment Do not use analytics Not sure Other Source: Deloitte s Global Chief Audit Executive Survey

7 Analytics benefits Reduce risk Add value Save time Create opportunities

8 Attribute Standard 1220 Due Professional Care Internal auditors must apply the care and skill expected of a reasonably prudent and competent internal auditor. Due professional care does not imply infallibility A2 In exercising due professional care internal auditors must consider the use of technology-based audit and other data analysis techniques. Technology-based Audit Techniques Any automated audit tool, such as generalized audit software, test data generators, computerized audit programs, specialized audit utilities, and computer-assisted audit techniques (CAATs). Performance Standard 2330 Performing the Engagement Internal auditors must identify analyse, evaluate, and document sufficient information to achieve the engagement s objectives Identifying Information Internal auditors must identify sufficient, reliable, relevant, and useful information to achieve the engagement s objectives Analysis and Evaluation Internal auditors must base conclusions and engagement results on appropriate analyses and evaluations.

9 Pressures Internal pressure for increased audit efficiency, coverage, quality and impact Regulatory pressure for stronger assurance and quantifiable results Need for dynamic, adaptive audit planning to focus on current and emerging risks Need to transition risk and control-oriented innovations to the business Source: High Water Advisors

10 2. So why are we not using analytics to its full potential

11 Software not easy to use Staff who used the software have left If you ve purchased but are not using DA software, why? No staff trained No time to learn software No funding for training Source: AuditNet Survey respondents, 494 respondents indicated they have purchased specific DA software

12 The Data Guy + Fewer people to train + Focused expertise CoE Limited capacity Auditors don t engage What if they leave? Demand for these skills

13 Every man for himself + Everyone has access + Apply at point of need Huge training requirement And re-training Not naturally skilled Need ongoing support

14 Champions + Distributed expertise + Embedded into audit teams + Fewer people to train + Encourage usage + Provide direct support Moderate training requirement

15 To maximise value from data analytics, they need to be integrated into every audit, so every auditor needs to be using analytics

16 knowing how to use the tool knowing when to use the tool

17 knowing how to use the tool Comes down to the tool Accessible and intuitive Easy to use Uses auditor s language

18 The tool can help Standardised routines A library of tests to use Quick wins Top 10 tests knowing when to use the tool

19 TeamMate Analytics Accessible and intuitive knowing how to use the tool

20 TeamMate Analytics Easy to use knowing how to use the tool

21 TeamMate Analytics Uses auditors language knowing how to use the tool

22 TeamMate Analytics Custom Modules 10 standard modules Tailored to specific audit areas Simple to run Easy to modify through a graphical interface knowing when to use the tool

23 TeamMate Analytics Test library 200+ fully documented tests Detailed instructions on how to perform Customised modules for each test knowing when to use the tool

24 The tool is just 1 factor

25 Develop a vision & plan Set a clear vision for the end-state and a plan toward getting there, then communicate it

26 Get buy in from the top Make sure the CAE is fully bought in and voices his support

27 Determine what success is Set targets and design KPIs around them to monitor progress

28 Appoint a lead One central person responsible for coordination and driving usage

29 Appoint champions Trained team members to drive usage on each audit and provide support

30 Provide training Provide an appropriate level of training for champions and users

31 Identify quick wins Use a few simple areas or tools to build momentum and demonstrate initial success

32 Share ideas and successes Encourage experimentation and collaboration, share ideas and examples of analytics usage to build enthusiasm

33 Embed into Audit Programs 65% would be more likely to use analytics if audit programs included steps

34 Mandate use on every audit Any audits not using analytics must be approved by exception

35 Provide incentives Consider linking each individual s usage to their performance targets and bonus

36 Increasing maturity Continue to champion the vision Track and communicate KPI s Eliminate data access hurdles Build and enforce processes Effective quality assurance Work smarter not harder Expand use across audit stages

37 Expand use across all audit stages 66% 37% 32% 25% 23% 19% 10% 2% 2% Fieldwork Scoping Annual planning Continuous auditing Reporting Continuous risk assessment Do not use analytics Not sure Other Source: Deloitte s Global Chief Audit Executive Survey

38 In summary The team The tool

39 Thank you You can contact me at See me and TeamMate Analytics at Booth 4