Surgent's Successfully Implementing Audit Data Analytics Tools to Add Value to the Audit Process (ADA2)

Description

While great in theory, the true value of audit data analytics (ADAs) comes from their successful use in the audit process. In Part 2 of our series, we will provide an overview of the types of substantive audit procedures that ADAs can assist in performing. We'll review how auditors can employ ADA tools when performing critical anti-fraud and substantiation audit procedures, such as matching, grouping, filtering, anomaly detection, clustering, keyword search, and visualization (drill down) audit techniques. We'll then discuss actual examples of ADA tests developed using Agile principles and identify the various stages of ADA implementation and best practices for their use in the audit.

Lastly, we'll provide in-depth examples of the usage of the following technologies
Journal Entry Testing- using Team Mate Analytics
Common Sizing- using Power BI, DAX formulas
Backlog of future tests to be implemented- prioritized by importance to the audits

Highlights

• Effective development of ADA tests, including successful consideration of the desired end result of the test
• Types of tests that can be run as ADAs, including what type of data they use, detection ability, and false positive factors
• Priority areas of audit where the use of ADAs provides the most value to the audit
• An effective process flow for ADAs: envision, speculate, explore, adopt, and close
• Iterative approaches for establishing quick wins, adding value, and building momentum on ADA projects
• Performing effective assessments at each stage of ADA implementation projects

Objectives

• Identify the new audit processes that must be managed in order to increase the chances of success and maximize value to the audit from the use of the ADAs
• Recall how Agile project management can ensure that the right work gets done at the right time and by the right people to maximize opportunity and enable change in the project when necessary
• Identify the tests that can be performed first to provide quick wins when using ADAs
• Identity other priority areas of the audit for which ADAs can be developed to achieve longer term goals
• Recall those fully developed and tested ADAs that can be used in the audit, if applicable to the audit risk assessment

Designed For

CPAs who need to know how to begin to implement ADA into their audit process while maximizing the chance of success and minimizing the chance of failure.