Audit data analytics software is set to change the external auditing profession forever. The possibility of working from 100% data sets makes for far more reliable results, from which more accurate business strategies can be chosen. And the industry as a whole gains greater credibility from operating with transparency and data-led evidence.
For those yet to make the leap to a digital-led approach, find our tips on how to implement audit analytics successfully below and get a head start over your competitors.
Contents
How to implement audit analytics: getting started:
1. Compartmentalize
2. Collaborate
3. Think of the long-term
4. Keep in mind what audit analytics means for you
5. Absorb and share best practice
Making the switch from sample-based audits to those capable of using 100% evidence is no mean feat. Some estimate that it’ll take around three years to become comfortable with the new processes. But however long it takes for you to become completely au fait with audit analytics, both you and your clients will reap the benefits in the long run.
Collecting and analysing 100% of data is a daunting prospect, given that a sample-based approach can be time-consuming in itself. Don’t attempt to wade in and do everything at once. Following discussions with your business client, break down data into manageable chunks, and begin with the areas you know best.
The biggest challenge is often getting started, so try to complete the smallest data sets first. This will give you a better understanding of the processes you’ll be facing ahead, and also give you a psychological boost that the task you have in front of you is perfectly achievable.
Read more here: When can audit analytics be used?
External auditors are employed by their clients, but this doesn’t mean they can’t collaborate. It’s essential that auditors remain independent from their clients to remain impartial but seeking advice and confirmation in specific areas can certainly reduce the potential difficulties found in introducing new software to your day-to-day tasks.
The combination of new Standards of Quality Management and a shift to full-blown audit analytics is likely to make the first few audits worked on a longer process than before. This can be frustrating for any auditor who’s already performing at full capacity.
Given the possibility of this, it’s important to keep the long-term in mind at all times. The more you use your new audit data analytics tools, the easier the process will become. And performing just a single 100% data-led audit for a specific company will make your work easier the next time around.
You’ll have a much better idea of that company’s strengths and weaknesses, have an audit analytics database to work from and be able to use the data gathered to either confirm or disprove your professional assumptions.
The opportunities presented by audit analytics can enhance your own standing in the eyes of the companies you’re working for. Rather than being ‘just’ an external auditor, using 100% data sets enables you to provide 100% accurate findings, upon which more reliable business strategies can be based.
Given that you’ll be closer to the data than virtually anyone else, your own in-depth knowledge and findings will be invaluable to your clients. Over time, the role of the external auditor will likely expand into that of a business advisor, securing your future status with your client base and having an influence over important business decisions.
Implementing audit analytics isn’t something you need to handle alone. Keep a record of your own findings, including challenges found and any methods you’ve found to make the process more efficient.
Testing 100% data sets is a huge undertaking, and it’s advisable to meet with as many auditors as you can to absorb and share best practices. You never know – there could be one shortcut that a fellow professional has found that can make your own life easier. And the stronger and more knowledgeable the profession is as a whole, the better it is for everyone involved.
Audit analytics is a process which will evolve over time, and probably at a much faster rate than traditional auditing has ever done. The more that auditors work together, the stronger and more knowledgeable the profession will be as a whole, and the better the level of service that can be offered.
See our post on who uses audit analytics for more information.
So how to implement audit analytics with as little fanfare as possible? Well, there’s no set of hard rules, and sadly no shortcuts, but follow these tips and you’ll be giving yourself the very best chance of success. Furthermore, choosing the right software can make your life drastically easier.
For a deeper understanding of companies and their processes, adopting the best and latest technology is a must. Used by more than 1000 accounting firms worldwide, Inflo software can act as your 24/7 assistant, analysing and mapping out audit data analytics for any company, big or small.
Contact us today for an entirely new approach to audit data analytics.
