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Data Analytics Is a Game Changer, But Internal Audit Groups Are Lagging, According to New Study by ProtivitiMENLO PARK, Calif., March 12, 2018 /PRNewswire/ -- According to findings from global consulting firm Protiviti's 2018 Internal Audit Capabilities and Needs Survey, the use of analytics in auditing remains in the early stages, and many audit functions are likely using analytics tools as point solutions, as opposed to part of a broader initiative to leverage analytics throughout the audit process. The global survey polled over 1,500 Chief Audit Executives (CAE) and internal audit leaders and professionals throughout North America, Europe, Asia-Pacific, Latin America, Africa, India and the Middle East to determine how internal audit groups are leveraging analytics in the audit process and where improvements are needed. "Growing demands from boards and executive management for deeper insights into strategic risks that organizations face has made the ability to leverage analytics and robotics a top priority for CAEs and audit committees," said Brian Christensen, executive vice president, global internal audit at Protiviti. "Even so, many internal audit departments are still struggling to develop a formal methodology for integrating data analytics. It is critical for these departments to formalize a data analytics program that specifies how data is to be identified, acquired and analyzed." Increasing Data Analytics Capabilities "Internal audit groups continue to face a lack of skills in understanding and using analytics technologies," said Christensen. "Chief audit executives need to focus on increasing the levels of education in their internal audit functions, and more specifically, to move from general plans and discussions about using analytics to actually advancing and integrating analytics, robotic process automation and other digital initiatives into the audit plan. Those who fail to integrate these initiatives risk becoming obsolete as their organizations continue to undergo digital transformation at an increasingly rapid pace." The survey also reveals a clear correlation between the audit committee's level of interest in the use of analytics to support the auditing lifecycle and the amount of information shared with the committee about the use of audiing analytics. Fifty-nine percent of respondents agreed that when a high level of information is shared with the audit committee, there is also a high level of interest from the audit committee in the use of audit analytics. "The use of analytics and the benefits they deliver should be communicated to the audit committee regularly," said Andrew Struthers-Kennedy, a managing director in Protiviti internal audit practice. "By better informing and educating the audit committee about analytics, CAEs will be far more likely to gain the committee's support for further investments in these capabilities." Data Analytics Action Items
Top Audit Plan Priorities for 2018
About the Survey Participants were asked to assess their skills and competency by responding to questions covering nearly 200 topic areas. Respondents from the manufacturing, U.S. financial services and U.S. healthcare industries were also asked to assess industry-specific skills (these findings are available upon request). Survey Resources From March 12 to 14, Protiviti is exhibiting at The Institute of Internal Auditors' General Audit Management Conference in Las Vegas and has complimentary copies of the survey report available for interested attendees (booth #213). For more information about the conference, please visit: www.protiviti.com/events. About Protiviti Named to the 2018 Fortune 100 Best Companies to Work For® list, Protiviti has served more than 60 percent of Fortune 1000® and 35 percent of Fortune Global 500® companies. The firm also works with smaller, growing companies, including those looking to go public, as well as with government agencies. Protiviti is a wholly owned subsidiary of Robert Half (NYSE: RHI). Founded in 1948, Robert Half is a member of the S&P 500 index. Protiviti is not licensed or registered as a public accounting firm and does not issue opinions on financial statements or offer attestation services. Editor's note: Infographic (in jpeg and pdf) and photos available upon request.
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