Technology Insights: Audit Data Analytics with Stefan Davis, Sr Product Manager at Wolters Kluwer

Looking at performing audit data analytics, multiple factors contribute to having a successful analytics program. One of the most critical – and often one of the most challenging – is having the right analytics skills and experience. Generally, applying data analytics in an audit requires a variety of different skills, and not all of them are equal.

Skills include:

When to Apply Analytics

Quite probably the most challenging skill to obtain, knowing when to apply analytics requires a good understanding of methodology and a good understanding of how to apply analytics.

How to Apply Analytics

Some skills are required to understand how to modify an approach that’s been performed for years to use analytics in place of other procedures – though not as many and when to apply analytics. You will need to understand how to take an analytical tool and employ it in practice. And while an element of experience is required, it is something that can be taught.

How to Run Analytics

Running an analytic with a lot of the tools available today is significantly easier than it used to be. Auditors can run a predefined analytic where all the parameters have been set up in advance with minimal training.

How to Follow up on Results

This is a core auditing skill that most audits should have. This step has to be done by the auditor on the engagement who understands the client and has the contacts and the ability to follow up on these things with the client.

How do we address these skills? How do we implement these areas? Over time, firms have tried various different approaches.

All Auditors Have an Analytical Tool

"We’ll have every auditor performing all the steps themselves." Rarely, this works in practice. Most auditors don’t have that deep understanding of methodology, and certainly not the more junior levels who will perform the analytics. They also don’t tend to have the experience of applying these analytical tools in different situations.

A Designated Data Analyst

Having a designated data analytics champion or data analytics who is responsible for all of the analytics on every audit can work, but is challenging to scale. It’s difficult for just a few individuals to perform analytics on every audit, especially during crunch / busy season. In addition, the data analyst can’t follow the results up with the clients. They don’t know the background of the client. They don’t know the context of the results that they’re seeing.

Both Data Analysts and Auditors

This half and half approach, with both data analysts and auditors supported by more modern analytics tools, is usually the most successful. These simple analytics tools enable simple creation of suites of analytics, which can be done by data analysts or analytics champions. These same tools also enable auditors who may have less data analytic skills to utilize the tools on a particular audit.

All of the analytics techniques needed to perform during an audit are included within TeamMate Analytics. Rather than a tool designed specifically for data analysts and experienced analysts, TeamMate Analytics is designed for auditors to use quickly and efficiently. It’s a tool that requires little additional training because it sits on a familiar platform and has a familiar interface – Microsoft Excel.

Watch the entire webinar and learn how to become an expert analyzer.