How to get auditors performing basic analytics using excel

10-8-2020
1
How to get auditors performing
basic analytics using Excel
A first step to getting them doing more and
deeper analytics
Ken Petersen
April 2020
About Jim Kaplan, CIA, CFE
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Windows devices)
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Award
 Author of “The Auditor’s Guide to
Internet Resources” 2nd Edition
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About AuditNet® LLC
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Ken Petersen
• Currently Product Manager of TeamMate
Analytics
• 25+ years developing and implementing
systems
• In the Governance, Risk & Compliance
space since 2002
• BSBA from Ohio State, MBA from University
of Dayton, PMP certified
• ken.petersen@wolterskluwer.com
www.TeamMateSolutions.com 7
Learning Objectives
How to get auditors performing basic analytics using Excel, as a first
step to getting them doing more and deeper analytics
In this Webinar, attendees will:
- Learn non-technical skills auditors need to perform audit analytics
- Audit analytics is about much more than technology
- Learn which commonly used Excel functions can be applied to audit analytics
- We are not learning new Excel functions (hopefully)
- Learn how to get auditors started down a path of thinking about analytics vs
automatically pulling samples
8www.TeamMateSolutions.com
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Data Analytics is Underutilized
 Audit shops relying on one/few
specialized data analytics staff are
not telling the complete story
 CAE: Is this a level of risk you are
willing to take?
 Should we just ask the DA
person/team to do 200% more
work?
Key Success Factors for your Data Analytics Program 9
Annual Audits
Currently
Applied
Not
Applicable
Missing
Data
Analytics
Currently
Applied
Not
Applicable
Missing
Data
Analytics
Currently
Applied
Not
Applicable
Missing
Data
Analytics
Who is on the audit team
- Data Analytics
- CPA
- Operations
- English Literature college major
- Many years in audit
- Straight out of college
Most audit teams are diverse, intentionally, and that’s good.
So let’s not try to make everyone a data analytics guru
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POLLING QUESTION 1
POLLING QUESTION 2
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Demonstration
Figure out the “What” before the “How”
 What do we want to understand to meet the Audit objective?
 What does it mean to sample and the “look at” the records
 Break this down into specifics and write them down
 Test based on existing policies and procedures
 Use test libraries for example tests
 Google for ideas to test
 Talk to colleagues at other organizations, network in professional
organizations
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POLLING QUESTION 3
Data Analytics for Sampling
 Many people are resistant to change
 Many auditors are fearful of “Analytics”
 Make “Completeness and Accuracy” checks an initial step of sampling
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Demonstration
How do we change
 The individual must recognize a need for a change
 The desire to change needs to be stronger than the perceived and real
difficulty of changing
www.TeamMateSolutions.com 18
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Our auditors can’t do analytics
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 Requires database skills
 Requires programming skills
www.TeamMateSolutions.com
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0 1 2 3 4 5 6 7 8 9 10
Desiretochange
Difficulty of changing (perceived /real)
When change occurs
How do we change
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Change
No Change
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How do we change
 Change can have a chain reaction
 Change can be temporary or lasting
 Other factors and people can influence our desire to change and difficulty
of change
 The desire to change and the difficulty of change can change over time
 Change can have side effects, good and bad
 Our documentation improved because of analytics
 Employee satisfaction increased when they started doing analytics
Priorities
Start with the “What” then focus more on the “How”
1. Focus first on Completeness and Accuracy, as a part of the sampling
process
2. Next ask to define what “looking at the sample” means, specifically.
Write it down, then evaluate if it can be done with existing Excel skills
3. Start making analytics a part of your process on every audit
4. Expand technical skillset, introduce additional tools
5. Get data that you haven’t gotten in the past
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POLLING QUESTION 4
ken.petersen@wolterskluwer.com
Ken Petersen
August 2020
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How to get auditors performing basic analytics using excel

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