Effective adoption of internal audit analytics in financial services institutions
By capitalizing on the wealth of data now available—from your own business activities as well as external sources— Internal Audit (IA) can generate valuable new insights, provide greater assurance, and rewrite the rulebook on traditional auditing techniques.
Given the surge of big data and the belief that traditional notions of IA testing are no longer sufficient in providing assurance, embedding analytics into internal audit plans has taken root. New economy business models, disruptive technologies, and ever increasing expectations by global regulators have elevated the importance of effectively applying analytics to IA. A recent global survey1 of 240 chief audit executives of financial services institutions foreshadows a dramatic increase in the use of advanced analytics. The research shows that about 20 percent of the surveyed participants are using advanced analytics in at least 75 percent of their audits, with that number expected to double in the next three to five years.
As internal auditors seek new ways to innovate in their roles, and gain impact and influence within their organizations, analytics is proving to be a key differentiator. By embedding analytics in every phase of the audit process, IA can help the business navigate a world that has become vastly more volatile, uncertain, and complex. We call this new approach to embedding analytics “insights-driven auditing.”
Inside Magazine - Global edition 2017
Inside is Deloitte’s quarterly magazine offering an exclusive insight into best practices, trends and opportunities faced by our clients across all industries.
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