Sunday, May 25, 2014

Data Analytics - impact to financial audit

Recently, data analytics is a very common topic. We were looking at Deloitte website and it appears to us that data analytics provide an insightful analysis of the business which assist the auditor (or even management) to look at the business from a different ankle and assist to identify potential weakness within the business (including: weakness in business process).

We are lucky enough to work on a number of data analytics project. How we felt? It is not easy to apply data analytics to all the audit client, as your audit client's IT system or data may not capture the information we need or the client's IT system might not be commonly use and may not allow us to conduct further analysis.

Having said that, data analytic is useful if the data is available. For instance, it may share with you a list of transactions with unusual preparer ID (e.g. CEO post entries into revenue account) - this may assist the auditor or audit commitee to identify red flags.

Data analytic is portraited as the future of audit tool and we believe that greater emphasis would be placed on data analytic going forward. It is time for auditor to educate the audit client to capture more information / data into the system for more in-depth analysis.

Please feel free to contact us if you need assistance on data analytics.

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