data analytics and process mining in internal audit › ak-sar-ben › events...analytic process...
TRANSCRIPT
Internal Audit, Risk, Business & Technology Consulting
INNOVATE. TRANSFORM. SUCCEED.
Adapt to the new business reality.
Data Analytics and Process Mining in Internal Audit IIA Ak-Sar-Ben Chapter – 10/22/2019
© 2019 Protiviti Inc. An Equal Opportunity Employer M/F/Disability/Veterans. Protiviti is not licensed or registered as a public accounting firm and
does not issue opinions on financial statements or offer attestation services. All registered trademarks are the property of their respective owners. Technology Consulting
*Inclusive of Protiviti's Member Firm network
Protiviti provides consulting solutions
in finance, technology, operations, data, analytics,
governance, risk and internal audit to our clients
through our network of more than 75 offices in over
27 countries
• We serve 60% of Fortune 1000®
• We serve 35% of Fortune Global 500®
• We also work with smaller, growing companies,
including those looking to go public, as well as with
government agencies.
• Protiviti is a subsidiary of Robert Half
International
PROTIVITI OVERVIEW
2
Over 27 countriesin the Americas, Europe,
the Middle East and
Asia-Pacific
75+offices
Our revenue*:
$1.04 billionin 2018
More than
6000+professionals**
© 2019 Protiviti Inc. An Equal Opportunity Employer M/F/Disability/Veterans. Protiviti is not licensed or registered as a public accounting firm and
does not issue opinions on financial statements or offer attestation services. All registered trademarks are the property of their respective owners. Technology Consulting
*Protiviti Member Firm
4
7
2
3
5
8
10
11
12
1314
1518
16
1917
9
20
1
6
21
22
23
27
25
2426
The Americas Europe/Middle East Asia-Pacific
1. UNITED STATES
Alexandria, VA
Atlanta, GA
Baltimore, MD
Boston, MA
Charlotte, NC
Chicago, IL
Cincinnati, OH
Cleveland, OH
Dallas, TX
Denver, CO
Ft. Lauderdale, FL
Houston, TX
Kansas City, KS
Los Angeles, CA
Milwaukee, WI
Minneapolis, MN
New York, NY
Orlando, FL
Philadelphia, PA
Phoenix, AZ
Pittsburgh, PA
Portland, OR
Richmond, VA
Sacramento, CA
Salt Lake City, UT
San Francisco, CA
San Jose, CA
Seattle, WA
Stamford, CT
St. Louis, MO
Tampa, FL
Washington, D.C.
Winchester, VA
Woodbridge, NJ
2. ARGENTINA*
Buenos Aires
3. BRAZIL*
Rio de Janeiro
São Paulo
4. CANADA
Kitchener-Waterloo
Toronto
5. CHILE*
Santiago
6. COLOMBIA*
Bogota
7. MEXICO*
Mexico City
8. PERU*
Lima
9. VENEZUELA*
Caracas
10 FRANCE
Paris
11. GERMANY
Frankfurt
Munich
12. ITALY
Milan
Rome
Turin
13. THE
NETHERLANDS
Amsterdam
14. UNITED
KINGDOM
Birmingham
Bristol
Leeds
London
Manchester
Milton Keynes
Swindon
15. BAHRAIN*
Manama
16. KUWAIT*
Kuwait City
17. OMAN*
Muscat
18. QATAR*
Doha
19. UNITED ARAB
EMIRATES*
Abu Dhabi
Dubai
20. SAUDI ARABIA*
Riyadh
21. EGYPT*
Cairo
22. SOUTH AFRICA*
Durban
Johannesburg
23. AUSTRALIA
Brisbane
Canberra
Melbourne
Sydney
24. CHINA
Beijing
Hong Kong
Shanghai
Shenzhen
25. INDIA*
Bengaluru
Chennai
Hyderabad
Kolkata
Mumbai
New Delhi
26. JAPAN
Osaka
Tokyo
27. SINGAPORE
Singapore
*Protiviti Member Firm
GLOBAL PRESENCE
3
© 2019 Protiviti Inc. An Equal Opportunity Employer M/F/Disability/Veterans. Protiviti is not licensed or registered as a public accounting firm and
does not issue opinions on financial statements or offer attestation services. All registered trademarks are the property of their respective owners. Technology Consulting
One of the Top 15
Best Firms to Work For —
Consulting magazine
(2014, 2015, 2016, 2017, 2018, 2019).
One of Fortune magazine’s 100
Best Companies to Work For
(2015, 2016, 2017, 2018, 2019).
Recognized as a Best Place to
Work in Atlanta, Baltimore, Chicago,
Dallas, Denver, Florida, Houston,
Los Angeles, New Jersey, Orlando,
Minneapolis, Philadelphia, Phoenix,
Pittsburgh, Salt Lake City, San
Francisco Bay Area, Tampa Bay,
Texas.
RECOGNIZED FOR OUR GREAT PEOPLE
4
© 2019 Protiviti Inc. An Equal Opportunity Employer M/F/Disability/Veterans. Protiviti is not licensed or registered as a public accounting firm and
does not issue opinions on financial statements or offer attestation services. All registered trademarks are the property of their respective owners. Technology Consulting
TODAY’S PRESENTER
Eric Wojcik is a Senior Manager in the Enterprise
Data and Analytics practice of Protiviti.
He has over 15 years of Analytics experience and
leads the SAP Analytics Strategy function.
© 2019 Protiviti Inc. An Equal Opportunity Employer M/F/Disability/Veterans. Protiviti is not licensed or registered as a public accounting firm and
does not issue opinions on financial statements or offer attestation services. All registered trademarks are the property of their respective owners. Technology Consulting
WHERE DO WE BEGIN?
6
𝟏. 𝟎𝟎 𝟑𝟔𝟓
𝟏. 𝟎𝟏 𝟑𝟔𝟓
INNOVATION AND ANALYTICS IN INTERNAL AUDIT
© 2019 Protiviti Inc. An Equal Opportunity Employer M/F/Disability/Veterans. Protiviti is not licensed or registered as a public accounting firm and
does not issue opinions on financial statements or offer attestation services. All registered trademarks are the property of their respective owners. Technology Consulting
PROTIVITI’S 2017 INTERNAL AUDIT CAPABILITIES AND NEEDS SURVEY
Data analytics is gaining a foothold in internal auditing 1
Cybersecurity, cloud, mobile tech and big data are top-of-
mind4
Business and digital transformation is drawing more
attention5
Most internal audit shops are still in their “analytics infancy”2
The more mature analytics capabilities are, the greater value
they’re perceived to deliver 3
© 2019 Protiviti Inc. An Equal Opportunity Employer M/F/Disability/Veterans. Protiviti is not licensed or registered as a public accounting firm and
does not issue opinions on financial statements or offer attestation services. All registered trademarks are the property of their respective owners. Technology Consulting
2018 Internal Audit Capabilities and Needs Survey
9
PROTIVITI’S 2018 INTERNAL AUDIT CAPABILITIES AND NEEDS SURVEY
© 2019 Protiviti Inc. An Equal Opportunity Employer M/F/Disability/Veterans. Protiviti is not licensed or registered as a public accounting firm and
does not issue opinions on financial statements or offer attestation services. All registered trademarks are the property of their respective owners. Technology Consulting
OUR VISION FOR NEXT-GENERATION INTERNAL AUDITING
10
The specific governance structures, methodologies and enabling technologies that next-generation internal audit
groups introduce vary. However, nearly all the transformations Protiviti has supported have addressed most, if not
all, of the following competencies, qualities and components in three broad categories:
Next
Generation
Internal Audit
IA Strategic Vision
Resource & Talent
Management
Aligned AssuranceAdvanced Analytics
Process Mining
Machine Learning (ML)
Artificial Intelligence (AI)
Continuous Monitoring Dynamic Risk Assessment
High Impact Reporting Agile Audit Approach
Robotic Process
Automation (RPA)
Organizational
StructureNext-
Generation
Internal
Audit
© 2019 Protiviti Inc. An Equal Opportunity Employer M/F/Disability/Veterans. Protiviti is not licensed or registered as a public accounting firm and
does not issue opinions on financial statements or offer attestation services. All registered trademarks are the property of their respective owners. Technology Consulting
PROTIVITI’S 2019 INTERNAL AUDIT CAPABILITIES AND NEEDS SURVEY
11
© 2019 Protiviti Inc. An Equal Opportunity Employer M/F/Disability/Veterans. Protiviti is not licensed or registered as a public accounting firm and
does not issue opinions on financial statements or offer attestation services. All registered trademarks are the property of their respective owners. Technology Consulting
2019 HIGHLIGHTS
12
© 2019 Protiviti Inc. An Equal Opportunity Employer M/F/Disability/Veterans. Protiviti is not licensed or registered as a public accounting firm and
does not issue opinions on financial statements or offer attestation services. All registered trademarks are the property of their respective owners. Technology Consulting13
2019 HIGHLIGHTS (CONT.)
© 2019 Protiviti Inc. An Equal Opportunity Employer M/F/Disability/Veterans. Protiviti is not licensed or registered as a public accounting firm and
does not issue opinions on financial statements or offer attestation services. All registered trademarks are the property of their respective owners. Technology Consulting
2019 HIGHLIGHTS (CONT.)
14
© 2019 Protiviti Inc. An Equal Opportunity Employer M/F/Disability/Veterans. Protiviti is not licensed or registered as a public accounting firm and
does not issue opinions on financial statements or offer attestation services. All registered trademarks are the property of their respective owners. Technology Consulting
ENTERPRISE DATA AND ANALYTICS: WHAT’S TRENDING IN THE MARKETPLACE
15
* IDC FutureScape: Worldwide CIO Agenda 2019 Predictions, Oct 2018 | Doc #US44403818. ** Competing in the Cognitive Age, Protiviti 2018.
*** Insights-Driven Businesses Set The Pace For Global Growth, Forrester, October 2018. **** Big Data Executive Survey 2018, NewVantage Partners, 2018.
***** Constellation Research 2018 Digital Transformation Study, 2019. ****** The Shifting Landscape of Finance, Protiviti Finance Trends Survey Report, 2018.
Compelled to curtail IT spending, improve
enterprise IT agility, and accelerate innovation,
70% of CIOs will aggressively apply data
and AI to IT
operations, tools and processes by 2021.*
Within two years, businesses expect to derive
major gains from advanced
AI in strategic and financial performance,
ability to scale global business and greater
market share.**
Insights-driven businesses are growing at an
average of more than 30% annually and are
predicted to earn $1.8 trillion annually by
2021.***
79.4% of executives say they fear
disruption from data-driven competitors, and
54.4% report that an inability to be nimble
and compete on data is the biggest
competitive threat they face today.****
An estimated 87% of successful digital
transformation projects incorporate an
underlying data component.*****
The standout priority for CFOs and financial
leaders is data - specifically data governance,
security and privacy, analytics and associated
process improvements.******
© 2019 Protiviti Inc. An Equal Opportunity Employer M/F/Disability/Veterans. Protiviti is not licensed or registered as a public accounting firm and
does not issue opinions on financial statements or offer attestation services. All registered trademarks are the property of their respective owners. Technology Consulting16
DATA AND ANALYTICS BASELINE
© 2019 Protiviti Inc. An Equal Opportunity Employer M/F/Disability/Veterans. Protiviti is not licensed or registered as a public accounting firm and
does not issue opinions on financial statements or offer attestation services. All registered trademarks are the property of their respective owners. Technology Consulting
THE 10,000 FOOT VIEW
18
Analytics BI
2
Enhanced data analytics
Insights
Data analysis
performed by users
Change, adjustment,
optimizations
Leadership
Change Management
Consumed in decision-
making and action
Business
Process
Data Consumption
© 2019 Protiviti Inc. An Equal Opportunity Employer M/F/Disability/Veterans. Protiviti is not licensed or registered as a public accounting firm and
does not issue opinions on financial statements or offer attestation services. All registered trademarks are the property of their respective owners. Technology Consulting
ANALYTIC PROCESS CHALLENGES
19
Strategic Alignment
• The most challenging problems
and opportunities are
quarterbacked across
business functions.
• Cross-departmental buy-in,
transparency and
understanding becomes a
critical component for success.
• Executive buy-in, acceptance
for iteration and evolution, data
literacy, enthusiasm and
celebration of individual
successes, lead to culture
change.
Insight Burden
• Insight Burden is experienced
in consuming content and
understanding its message.
• An infographic, a dashboard,
and a self-service tool each
provide a different burden on
understanding on a user.
• Reducing analytic burden is the
key to cross-departmental
collaboration and information
sharing.
Analytic Overhead
• Analytic Overhead is
experienced producing
content, often on a monthly or
weekly cadence.
• A monthly PowerPoint
presentation or Excel
workbook that takes multiple
days to generate and multiple
system exports is an example
of an analytic overhead.
• This overhead results in
numerous inefficiencies and
opportunities.
© 2019 Protiviti Inc. An Equal Opportunity Employer M/F/Disability/Veterans. Protiviti is not licensed or registered as a public accounting firm and
does not issue opinions on financial statements or offer attestation services. All registered trademarks are the property of their respective owners. Technology Consulting
THE 10,000 FOOT VIEW
20
Analytics BI
2
Enhanced data analytics
Insights
Data analysis
performed by users
Change, adjustment,
optimizations
Leadership
Change Management
Consumed in decision-
making and action
Business
Process
Data Consumption
© 2019 Protiviti Inc. An Equal Opportunity Employer M/F/Disability/Veterans. Protiviti is not licensed or registered as a public accounting firm and
does not issue opinions on financial statements or offer attestation services. All registered trademarks are the property of their respective owners. Technology Consulting
ADVANCED ANALYTICS, PREDICTIVE, PLANNING
21
Business
ProcessInsights
Analytics BI
Leadership
Change Management
Advanced and
Predictive
Analytics Targets
Enrichment
Forecasts
Scoring
Prediction
2
Enhanced data analytics
© 2019 Protiviti Inc. An Equal Opportunity Employer M/F/Disability/Veterans. Protiviti is not licensed or registered as a public accounting firm and
does not issue opinions on financial statements or offer attestation services. All registered trademarks are the property of their respective owners. Technology Consulting
VISUALIZATION
22
Business
ProcessInsights
Analytics BI
Leadership
Change Management
You
Insights
Business
Partners
Advanced and
Predictive
Analytics
2
Enhanced data analytics
© 2019 Protiviti Inc. An Equal Opportunity Employer M/F/Disability/Veterans. Protiviti is not licensed or registered as a public accounting firm and
does not issue opinions on financial statements or offer attestation services. All registered trademarks are the property of their respective owners. Technology Consulting
DATA QUALITY AND OTHER ANTI-PATTERNS
23
Business
ProcessInsights
Analytics BI
Leadership
Change Management
Business
Partners
Insights
Governance
MDM
Advanced and
Predictive
Analytics
2
Enhanced data analytics
© 2019 Protiviti Inc. An Equal Opportunity Employer M/F/Disability/Veterans. Protiviti is not licensed or registered as a public accounting firm and
does not issue opinions on financial statements or offer attestation services. All registered trademarks are the property of their respective owners. Technology Consulting
BENEFITS OF DATA ANALYTICS IN AUDIT
24
© 2019 Protiviti Inc. An Equal Opportunity Employer M/F/Disability/Veterans. Protiviti is not licensed or registered as a public accounting firm and
does not issue opinions on financial statements or offer attestation services. All registered trademarks are the property of their respective owners. Technology Consulting
THE PEOPLE CHALLENGES WITH ANALYTICS
Language and culture
Collaboration, time, meetings
The way it is
The art of the possible
Training, knowledge, know-how
25
© 2019 Protiviti Inc. An Equal Opportunity Employer M/F/Disability/Veterans. Protiviti is not licensed or registered as a public accounting firm and
does not issue opinions on financial statements or offer attestation services. All registered trademarks are the property of their respective owners. Technology Consulting
INTEGRATING ANALYTICS INTO THE AUDIT PROCESS
The entire audit process from scoping to reporting is affected by integrating analytics
26
Integrated Analytic Audit Steps
Visualize
results
Targeted
testing
Identify
potential
analytics
Obtain
data
Analyze
data
Identify
potential
issues
Traditional Audit Steps
Confirm
objectives and
approach
Confirm
detailed scope
Kick-off
audit
Sample
testingReporting
© 2019 Protiviti Inc. An Equal Opportunity Employer M/F/Disability/Veterans. Protiviti is not licensed or registered as a public accounting firm and
does not issue opinions on financial statements or offer attestation services. All registered trademarks are the property of their respective owners. Technology Consulting
SUCCESSFUL DATA ANALYTICS
For success, factor in process changes, have the right resources, and obtain the right data
How will the audit
process be changed to
effectively incorporate
analytics?
Are people with the
right skill set available
or can they be trained?
What tool requires
minimal support?
Is an adequate tool
already available?
What is the most
efficient way to obtain
and prepare the
correct data?
PEOPLE PROCESS
TECHNOLOGY DATA
Building Blocks of Data Analysis
27
PROCESS MINING
© 2019 Protiviti Inc. An Equal Opportunity Employer M/F/Disability/Veterans. Protiviti is not licensed or registered as a public accounting firm and
does not issue opinions on financial statements or offer attestation services. All registered trademarks are the property of their respective owners. Technology Consulting
PROCESS MINING
29
Analytics
Process Mining
Business
ProcessInsights
Analytics BI
Leadership
Change Management
Business
Partners
Insights
Governance
MDM
Advanced and
Predictive
Analytics
2
Enhanced data analytics
© 2019 Protiviti Inc. An Equal Opportunity Employer M/F/Disability/Veterans. Protiviti is not licensed or registered as a public accounting firm and
does not issue opinions on financial statements or offer attestation services. All registered trademarks are the property of their respective owners. Technology Consulting
PROCESS MINING
Where did this come from anyway?
30
© 2019 Protiviti Inc. An Equal Opportunity Employer M/F/Disability/Veterans. Protiviti is not licensed or registered as a public accounting firm and
does not issue opinions on financial statements or offer attestation services. All registered trademarks are the property of their respective owners. Technology Consulting
WHERE DO WE END?
31
𝟏. 𝟎𝟎 𝟑𝟔𝟓
𝟏. 𝟎𝟏 𝟑𝟔𝟓
= 1
= 37.783
𝟐 𝒀𝒆𝒂𝒓𝒔 = 1,427.59 𝟑 𝒀𝒆𝒂𝒓𝒔 = 53,939
© 2019 Protiviti Inc. An Equal Opportunity Employer M/F/Disability/Veterans. PRO-0619
Protiviti is not licensed or registered as a public accounting firm and does not issue opinions on financial
statements or offer attestation services. All registered trademarks are the property of their respective owners.