Data analytics is being leveraged more than ever by internal audit departments, but for those that haven't jumped on the bandwagon yet, this interview with CVS Health's head of data analytics explains the benefits, challenges, and misconceptions tied to the technology.
Histograms are a very powerful tool to analyze data because they show the distribution of a continuous variable in a diagram and their appearance is similar to bar graphs. In this feature article, MISTI's Dr. Hernan Murdock explains how internal auditors can leverage them.
As internal auditors increase their use of data analytics to better understand process characteristics, isolate issues and perform more accurate root cause analysis, the Pareto Diagram continues to grow as a useful tool for them.
As the business world changes at an accelerating rate, auditors need to keep up or risk becoming irrelevant and unable to provide the insight that will allow their organizations to succeed. That means they’ll need to continually add to their skills and knowledge.
Organizations are accumulating large amounts of data and internal auditors are rapidly increasing their mining for, and use of, these sizable data sets. This proliferation of data raises the question of how to extract meaning from it all.
Given the talents and skills that auditors possess (analyzing data, spotting trends, forming conclusions), auditors are in a perfect position in a company to be part of data analytic innovation. This article proposes a plan to fill in the gaps and implement data analytics in the business.
Study after study has shown that data analytics is effective and efficient at detecting risk and identifying control weaknesses, non-compliance, and inefficient business processes. So why have some internal audit departments still not embraced it?
Among the most powerful tools these days to detect and deter fraud is data analytics. While some internal audit departments struggle to use sophisticated analytics tools and continuous monitoring, those that do have a leg up on rooting out fraud and finding it in unlikely places.
Whether it's data analytics; governance, risk, and compliance solutions; or planning and collaboration software packages, most internal audit departments are looking to improve their use of technology as they strive to do more with less.
Data analytics is supposed to be the great savior of the internal audit function. It has been heralded as the set of tools that will give organizations new insights into risk management, fraud, and corruption.