Reflection Paper

Analytics breaks down vast volumes of data and then rebuilds it to form information
clusters that the auditor can use to analyze the risk landscape. Effective data analytics elevates
performance, provides greater value to the organization, and increases the credibility of an
internal audit with its stakeholders. It allows IAs to streamline the internal audit process so that
it can be completed within a shorter timeframe and at a lower cost to the organization.
Auditors can more quickly make connections between different datasets, which means they can
focus on more profitable areas like strategic risks. It can add value at all stages of the audit life
cycle and change the way assurance is delivered. Data analytics can provide businesses with
rapid and continuous insight on key processes and controls, while advanced business
intelligence software can provide visual insight into risk exposure and underlying trends.

Auditors need to work more flexibly particularly as working remotely is the new normal for
many organisations. Data analytics offers a way to do that and is increasingly being used to
deliver remote audits, and to generate insights on risks and the internal control environment.
Meanwhile, the opportunity to add value at all stages of the audit lifecycle through analytics is
growing and can change the way assurance is delivered. If the use of data analytics in auditing is
not embraced there is a missed opportunity to raise the profile of the internal audit function,
and to add significant value and insight to stakeholders across the wider organisation.