Data analytics software selection and implementation
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The document outlines a webinar on selecting and implementing data analytics tools for internal audit functions, emphasizing a risk-based selection process. It highlights the importance of integrating data analysis into audit practices to enhance efficiency and uncover previously undetected issues. Additionally, the session provides insights on selecting appropriate software, developing onboarding strategies, and fostering an audit culture that includes all team members.
![3/18/2019
15
[Don Sparks, working on the IIA GTAG 13, provided this document and
it is now a recommended IIA practice guide. Don created this when he was
a chief auditor at an insurance company in the 1990’s.]
DA: Selection & Implementation
Meet Stakeholder Expectations
WARNING!
• Correct analysis?
• Good data?
• Data readily available?
• The data speaks for itself?
• Offender terminated?
• One perpetrator, or many?
• Best/Leading/Smart practice for all?
• “Bad” can’t happen?
• Know tools, competencies, company, industry!DA: Selection & Implementation
29
30](https://image.slidesharecdn.com/dataanalyticssoftwareselectionandimplementation-190319012040/85/Data-analytics-software-selection-and-implementation-15-320.jpg)
Data analytics software selection and implementation
- 1. 3/18/2019 1 DATA ANALYTICS: SELECTION & IMPLEMENTATION Don Sparks CIA, CISA, ARM 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 Page 2 1 2
- 2. 3/18/2019 2 ABOUT AUDITNET® LLC • AuditNet®, the global resource for auditors, serves the global audit community as the primary resource for Web-based auditing content. As the first online audit portal, AuditNet® has been at the forefront of websites dedicated to promoting the use of audit technology. • Available on the Web, iPad, iPhone, Windows and Android devices and features: • Over 3,000 Reusable Templates, Audit Programs, Questionnaires, and Control Matrices • Webinars focusing on fraud, data analytics, IT audit, and internal audit with free CPE for subscribers and site license users. • Audit guides, manuals, and books on audit basics and using audit technology • LinkedIn Networking Groups • Monthly Newsletters with Expert Guest Columnists • Surveys on timely topics for internal auditors Introductions Page 3 The views expressed by the presenters do not necessarily represent the views, positions, or opinions of AuditNet® LLC. These materials, and the oral presentation accompanying them, are for educational purposes only and do not constitute accounting or legal advice or create an accountant-client relationship. While AuditNet® makes every effort to ensure information is accurate and complete, AuditNet® makes no representations, guarantees, or warranties as to the accuracy or completeness of the information provided via this presentation. AuditNet® specifically disclaims all liability for any claims or damages that may result from the information contained in this presentation, including any websites maintained by third parties and linked to the AuditNet® website. Any mention of commercial products is for information only; it does not imply recommendation or endorsement by AuditNet® LLC 3 4
- 3. 3/18/2019 3 5 Selecting the right data analysis tool for your audit function requires a risk based selection process. In this session you will learn how to select the best tool and more importantly integrate the process into your staff. The right approach minimizes the risk of selecting a product that might not fit your organization, which could impair your function as it sits underutilized or on the shelf. Finding the right issues quickly and timely improves the value of auditing and assists auditing to win more work. Attending this webinar you will learn a step-by-step approach: . How to select the software . Build a short/long term on-boarding roadmap . Realize the lost opportunity of not including all auditors (no auditor left behind) DA: Selection & Implementation GOAL OF ACHIEVING MAXIMUM ROI When the right software is implemented, the results can be significant. Successful internal audit functions have stakeholders that recognize the efficiencies in audit processes and echo audit results that regularly disclose previously unknown issues. And just as important, internal audit leaders know and are confident the audit tests being conducted are done in a manner consistent with their directions. And while they may not roll out the software to 100 percent of the staff initially, in a few short months many staff members will be able to effectively perform data analysis routines. DA: Selection & Implementation 5 6
- 4. 3/18/2019 4 YOUR SOLUTION OPTIONS • Out source work • Assign to one person or group • Embed analytics into the application(s) • Make Data A a core competency DA: Selection & Implementation • General Desk Top • Excel & Add Ons • Access • TeamMate • Integrated Query • PeopleSoft • SAP • Oracle • JDE • Report writers • Cognos • Business Objects • Server-based (SQL) DA: MANY CHOICES ON THE MARKET THESE DAYS! • “Step-by-Step” Auditing Software • ACL • CaseWare IDEA • Arbutus • SAS • Specialized Visualization • Tableau • Qlikview/Qlik Sense DA: Selection & Implementation 7 8
- 5. 3/18/2019 5 HANDOUTS – TAKE AWAYS • Matrix • White Paper DA: Selection & Implementation CROSS INDUSTRY STANDARD PROCESS – DATA MINING DA: Selection & Implementation 9 10
- 6. 3/18/2019 6 AUDITING TOP DUTIES Risk management processes are monitored through ongoing management activities, separate evaluations, or both. (New) 2120.A1 – The internal audit activity must evaluate risk exposures: • Achievement of the organization’s strategic objectives • Reliability & integrity of financial & operational information • Effectiveness & efficiency of operations & programs • Safeguarding of assets • Compliance with laws, regulations, policies, procedures, & contracts 2120.A2 – The internal audit activity must evaluate the potential for the occurrence of fraud and how the organization manages fraud risk. DA: Selection & Implementation DEFINITIONS • Data Mining – Looking at the entire population for specific data patterns, such as, duplicate transactions, round amounts, incomplete address information, etc. • Data Analytics – the science of examining raw data. The purpose is to determine if this data contains information. • “Champion”. Individual tasked by the chief audit executive to do the Data Analytics program. Not lead it, own it. DA: Selection & Implementation 11 12
- 7. 3/18/2019 7 WHAT IS DRIVING IA FUNCTIONS TO LOOK CLOSER AT CORPORATE DATA? • Successes at other internal audit functions • Issues making news raise the question “can it happen here” or “did we conduct business with any of the people involved” • Compliance regulations • Eliminate redundancies • Operational efficiencies • Loss prevention • Anti-Fraud • Senior Management & Audit Committee pressure DA: Selection & Implementation ARE YOU LOOKING TO IMPROVE? • Internal Audit Department Processes • Assurance Engagements • Consulting Engagement • Fraud Investigations DA: Selection & Implementation 13 14
- 8. 3/18/2019 8 Nothing moves auditors into the board room faster than finding previously undetected anomalies in corporate data – errors and fraud DA: Selection & Implementation AUDIT LIFE CYCLE PlanningMonitoring Corrective Action Communicating Results Testing DA: Selection & Implementation 15 16
- 9. 3/18/2019 9 CONSULTANTS REGULATORS •Frequency & number of invoices EXTERNAL CANDIDATESIssue Resolution Process Effectiveness & Efficiency processes Compliance Integrity & Reliability information Safeguard Assets Assist Mgmt. Complete mission • Strategic: High level goals, aligned with & supporting the company’s mission •Operations: Effective & efficient use of resources •Reporting: Reliability of reporting •Compliance: Laws & regulations •Competition EVALUATE - TEST INTERNAL CANDIDATES •Complexity of Business Operations •Level of Automation •Legal & Regulatory Impact •Inherent Risk •Change in Systems & Procedures •Personnel •Impact on Financial Statements •Potential for Fraud •Time Since Last Audit DATA FEED CONTINUOUS VALID? VALID? CUSTOMER SATISFACTION SURVEYS •Lessons learned •Update W/Ps, •Tools, programs, •Issue Final Report Yes •SPECIAL PROJECTS •FRAUD INVESTIGATION •HOTLINE ISSUES E AUDIT A AUDIT PLAN/ SET PRIORITIES Yes No No A Internal Auditing Process Cycles Risk Assessment REGULATORAUDITPLAN PUBLICACCTGPLAN I M P A C T FREQUENCY Low (Green) Medium (Yellow) High (Red) $ # Audit Report File AUDIT (IA) UNIVERSE Lessons learned become the driver – monitoring outputs Executive Info System Dash Boards Balance Scorecard 1. Align IA Strategy with Corporate strategy 2. Incorporate risk assessment 3. Set periodic audit plan 4. Conduct engagements DA: Selection & Implementation 17 18
- 10. 3/18/2019 10 Average Better Good World Class DataAnalytics–APracticalApproach DA: Selection & Implementation TIPS FOR SUCCESSFUL DATA ANALYTICS INTEGRATION: • Start with a high-priority, high-return project. The first project may require significant set-up costs, so it is important to begin with a project that will lead to tangible visible returns. • Focus on efficiency and effectiveness. Doing the right things the right way will provide opportunities to look around the corners for abuse, waste, errors and fraud. Adopt a no auditor left behind strategy. • Communicate. Sharing information while protecting inside knowledge across multiple departments about successes will build momentum. Build demand for audit skills and talent. • Be brief; be thorough; be gone! Organizations should avoid cramming too much development into one project while building the skills to develop and sustain successful data analytics efforts. Broaden your horizon. Protect your independence and objectivity without cutting corners. • Exercise patience. Although quick-hit projects may be completed in a few days or weeks, full integration can take a year or more and your plan may need to be refined as business activities and risks change. On-board remaining staff when budget and other resources are available. • Use the software provider. You do not have to “go-it-alone”. Use the helpdesk, training, custom scripting and all other difficult technical support to take your audits to the next level.DA: Selection & Implementation 19 20
- 11. 3/18/2019 11 SELECTION & IMPLEMENTATION – WORK PLAN Do You Need a Roadmap? 21DA: Selection & Implementation NEEDS ANALYSIS – MIND THE GAP! • Inventory Staff Skills & Technology Tools • Improve Your Data Analysis IQ • Improve Knowledge of Information Policies • Involve Decision Makers – Understand the approval process • Integrate Knowledge into your Strategic Planning Model 25 DA: Selection & Implementation 21 22
- 12. 3/18/2019 12 WHAT CAN YOU AFFORD? • Who’s budget • Understand the different licensing provisions • Concurrent licensing • Per user license (electronic licensing) • Leased Software – software stops working on a specified date • Budget Considerations – maintenance, upgrades, help desk support, training, components, scripts, etc….. 26 DA: Selection & Implementation WHO DO YOU WANT ON YOUR TEAM? • Marketing • Years in business • Customers • Global Presence • Client specialists 27 DA: Selection & Implementation 23 24
- 13. 3/18/2019 13 NARROW THE FIELD • Purchase a license of the current version of your final candidate(s) • Install the software • Documentation of tests completed • Do the exact same tests on each finalist • Determine the “tool” functions you really need 28 DA: Selection & Implementation SELECT & PURCHASE - NO AUDITOR LEFT BEHIND • Determine the initial deployment level • Demonstrate you stand behind the selection • Purchase Decision 29 DA: Selection & Implementation 25 26
- 14. 3/18/2019 14 IMPLEMENTATION & CONVERSION STARTUP AND ACCEPTANCE • Follow the roll out plan – conversion to production use • Follow the training plan • Finalize the first audits where the solution will be used • Start a library for your staff 30 DA: Selection & Implementation MONITOR & IMPROVE - REACH FOR THE NEXT LEVEL • Strive for 100% Deployment • Maintain Technical Proficiency • Stay in contact with client specialist • Use the help desk support • Keep software licenses up to date • Look for new opportunities to expand usage 31 DA: Selection & Implementation 27 28
- 15. 3/18/2019 15 [Don Sparks, working on the IIA GTAG 13, provided this document and it is now a recommended IIA practice guide. Don created this when he was a chief auditor at an insurance company in the 1990’s.] DA: Selection & Implementation Meet Stakeholder Expectations WARNING! • Correct analysis? • Good data? • Data readily available? • The data speaks for itself? • Offender terminated? • One perpetrator, or many? • Best/Leading/Smart practice for all? • “Bad” can’t happen? • Know tools, competencies, company, industry!DA: Selection & Implementation 29 30
- 16. 3/18/2019 16 AUDITNET® AND CRISK ACADEMY • If you would like forever access to this webinar recording • If you are watching the recording, and would like to obtain CPE credit for this webinar • Previous AuditNet® webinars are also available on-demand for CPE credit http://criskacademy.com http://ondemand.criskacademy.com Use coupon code: 50OFF for a discount on this webinar for one week MORE INFORMATION Don Sparks [email protected] 407-756-0375 cell Questions? 32DA: Selection & Implementation 31 32