![]() While we are making significant progress and are beginning to see the benefits of big data and analytics in the audit, we recognize that this is a journey. Big data and analytics are enabling auditors to better identify financial reporting, fraud and operational business risks and tailor their approach to deliver a more relevant audit. ![]() The transformed audit will expand beyond sample-based testing to include analysis of entire populations of audit-relevant data (transaction activity and master data from key business processes), using intelligent analytics to deliver a higher quality of audit evidence and more relevant business insights. However, recent technology advancements in big data and analytics are providing an opportunity to rethink the way in which an audit is executed. While the profession has long recognized the impact of data analysis on enhancing the quality and relevance of the audit, mainstream use of this technique has been hampered due to a lack of efficient technology solutions, problems with data capture and concerns about privacy. Meanwhile, companies are expecting an enhanced dialogue with their auditors and more relevant insights. Professional skepticism, and a continued focus on the quality of audit evidence, are required throughout an audit. Audit firms must continue their robust audits to serve the public interest by increasing quality on a continuous basis and by delivering more insights and value to the users of the financial statements. Transforming the auditĪs we continue to operate in one of the toughest and most uneven economic climates in modern times, the relevance of the role of auditors in the financial markets is more important than ever before. One area where we see significant potential is in the transformation of the audit. Major companies and organizations have recognized the opportunity that big data and analytics provide, and many are making significant investments to better understand the impact of these capabilities on their businesses. But big data in itself yields limited value until it has been processed and analyzed.Īnalytics is the process of analyzing data with the objective of drawing meaningful conclusions. The general view is that big data will have a dramatic impact on enhancing productivity, profits and risk management. ![]() “Big data” is the term used to describe this massive portfolio of data that is growing exponentially. However, technology trends over the past decade have broadened the definition, which now includes data that is unstructured and machine-generated, as well as data that resides outside of corporate boundaries. Historically, data was something you owned and was generally structured and human-generated. We explore the key issues facing auditors as they embrace big data and analytics. ![]()
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