Turning internal audit into the data analytics epicenter for your organization
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The document outlines strategies for transforming the internal audit function into a data analytics hub within organizations, emphasizing the importance of customer service, integration of new technologies, and proactive evaluations. It details tactical approaches such as market visibility, timing, and collaboration with other data analytic groups while maintaining independence. Ultimately, the goal is to enhance the credibility and effectiveness of internal audits to add value and improve organizational operations.
Turning internal audit into the data analytics epicenter for your organization
- 1. TURNING INTERNAL AUDIT INTO THE DATA ANALYTICS EPICENTER FOR YOUR ORGANIZATION Presenter: Heath Rude
- 2. Internal Audit Strategic Plan •Satisfaction survey score •Audit requests •Outreach activities •Committee/task force •PwC reliance on IA PARTNERING OBJECTIVES MEASURES •Provide the best customer service possible •Become a strategic business partner & trusted advisor •Cost savings •Use of technology to enhance the audits •Best practices & process improvements identified PIONEERING OBJECTIVES MEASURES •Add value & improve company operations •Embrace the use of new technology •Stimulate positive change •Satisfaction survey •Training hours/auditor •Staff certifications •Industry experience •Audit experience •Audit staff turnover PEOPLE OBJECTIVES MEASURES •Develop skilled & motivated individuals into future company leaders •Be the employer of choice in the industry PROCESSES •Audit performance evaluation score •Audit plan completion % •Budget vs. actual costs •Report turnaround OBJECTIVES MEASURES •Provide independent, objective assurance and consulting services in a systematic, disciplined approach INTERNAL AUDIT STRATEGY CORPORATE STRATEGY • Leadership • Professionalism • Passion • Happiness • Vision • Innovation • Change • Proactivity • Independence & Objectivity • Integrity • Efficiency & Effectiveness •Professional Skepticism • Trust • Teamwork • Unity • Synergy ADVISORY ASSURANCE Values Values Values Values
- 3. Focus on the BONE! Improve your organization through data analytics! ■ Take the Lead ■ Tactics ■ Obstacles ■ Real Examples Become Sought-After .
- 4. The Case for Internal Audit (IA) Taking The Lead
- 6. Assurance Skillset Advisory • Process Re-Engineering • Facilitators • Data Analytics
- 7. “That is not the role of IA.”
- 8. Internal auditing is an independent appraisal activity established within an organization as a service to the organization. -IIA Definition of IA in 1978 Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations. - IIA Definition of IA from 1999 to today
- 9. Internal Audit credibility and value are enhanced when auditors are proactive and their evaluations offer new insights and consider future impact. - 2016 Proposed Addition, Standard 2100
- 10. Aligns with the strategies, objectives, and risks of the organization. Demonstrates quality and continuous improvement. Communicates effectively. Is insightful, proactive, and future-focused. Promotes organizational improvement.
- 11. Advisory services is an essential function of IA.
- 13. 0 200 400 600 800 1000 1200 1400 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 New York State Violent Crime Rate per 100,000 Population Source: FBI, Uniform Crime Reports
- 14. For Daily Fantasy-Sports Operators, the Curse of too much Skill In the first half of the 2015 MLB season, 91% of daily fantasy sports player profits were won by just 1.3% of players -Article by Ed Miller and Dan Singer, Sports Business Daily
- 15. How Companies Learn Your Secrets My daughter got this in the mail!” he said. “She’s still in high school, and you’re sending her coupons for baby clothes and cribs? Are you trying to encourage her to get pregnant?” -Article by Charles Duhigg, New York Times
- 17. Tactic 2: Timing is Everything
- 18. RED FLAG RULES Are customers who they say they are? ■ Huge data set in multiple tables ■ Defined rules of applicability ■ The system handles it ■ Company expert
- 19. Customer Rates Were customers accurately billed? ■ Several regulated tariffs ■ Monthly weather adjustor ■ Team to program and test ■ Over 100 pages of scripting
- 20. “They should not have access to that.”
- 21. IA needs access to data to do their job.
- 22. Tactic 3: Market Yourself
- 28. 2nd Line: Monitoring 1st Line: Performing 3rd Line: Auditing Risks The Three Lines of Defense
- 29. Revenue Protection Has someone stolen gas? ■ Three lines of defense ■ Validate reports or triggers ■ Improve the process
- 30. Rate Change Report Were changes properly entered into the system? ■ Many types of changes ■ Over 2,200 pages ■ 100% comparison ■ Temporary fix
- 31. Purchasing Card Committee What card is best for our Company? ■ Spending habits ■ Vendor contract ■ Authorization levels and spending limits ■ System configurations ■ Dealing with outliers
- 32. Tactic 4: Win When You Fail
- 33. Fuel Purchases Are fuel purchases legit and within policy? ■ Good procedures ■ Poor reports ■ No enforcement ■ Bad data
- 34. Tactic 5: Support Other Data Analytic Groups
- 35. “We cannot ask them for help because they must maintain their independence.”
- 36. IA can provide assistance while ensuring safeguards are in place while maintaining independence.
- 37. Pipe Recall What pipe needs to be replaced and when? ■ Trouble getting data ■ System change ■ Lay out assumptions ■ Prioritized by operational unit
- 38. “We’re hesitant to ask for help from them because it may be used against us.”
- 39. IA is a trusted advisor and a valuable partner.
- 40. Remember the BONE! Improve your organization through data analytics! Build your strategy: ■ Integration ■ Timing is Everything ■ Market Yourself ■ Win When You Fail ■ Support Other Data Analytic Groups Become Sought-After