Welcome!

News Feed Item

Internal Audit Departments Starting to Embrace Data Analytics, Yet Many Have Far to Go to Achieve Full Potential, According to Latest Protiviti Survey

Audit professionals who use data analytics find significant value in its use; others need assistance with process and skills gaps

MENLO PARK, Calif., March 20, 2017 /PRNewswire/ -- The abundance of information captured in the world today and the ability to apply data analytics to assess, monitor and predict activity has many chief audit executives (CAEs) around the world rethinking traditional audit models and approaches. According to Embracing Analytics in Auditing, the 2017 Internal Audit Capabilities and Needs Survey report, released today by global consulting firm Protiviti, 66 percent of internal audit functions now employ some form of data analytics in audit processes. However, despite this positive trend, many audit departments (34 percent) do not employ data analytics as part of the audit process, thus have not started the journey to realize the significant benefits that analytics technologies and resulting insights can provide. Of those who currently use data analytics, a mere 10 percent rate their data analytics functions as quantitatively managed or optimized.

More than 900 internal audit professionals participated in Protiviti's 11th annual Internal Audit Capabilities and Needs Survey to assess data analytics capabilities and practices among internal audit functions, along with the top priorities for CAEs and internal audit professionals this year. The survey was conducted globally and the majority of the responses came from North America.

"The pace of change in our world is having a dramatic impact on how organizations operate.  Internal audit professionals must be adept in applying new tools and techniques to understand and manage risk. The use of advanced data analytic techniques is the runaway winner as a best practice of the future," said Brian Christensen, executive vice president, global internal audit and financial advisory, Protiviti. "Many of the organizations that are already employing data analytics within their audit departments are beginning to experience significant value in the results. As recognition of these benefits grows, we expect to see CAEs work with management and the board of directors to make further investments to increase their data analytics capabilities, in terms of both tools and skillsets, as the practice of internal auditing shifts increasingly to analytics and continuous auditing and monitoring."  

The Impact: Data Analytics and the Audit Process
Although they are in the minority amongst their peers, internal audit functions with mature, continuous monitoring and auditing programs are achieving impressive benefits. These include strengthening risk assessments; more effectively tracking fraud indicators and key operational indicators; enabling a real-time view of organizational risk; and conducting risk-based audits.

On the other end of the spectrum, according to the report, internal audit groups in the developmental stage may not know yet how to properly elevate and optimize their analytics, largely due to the lack of understanding about the benefits these capabilities can provide.

Challenges and Insights
The survey also revealed that internal audit functions face numerous challenges, such as:

  • 73 percent of all organizations performing analytics say demand for data analytics has increased – even more so among organizations in the "best practices" segment
  • 34 percent are planning to add analytics headcount
  • Identifying where data resides is a challenge for 60 percent of organizations as are system constraints (56 percent)
  • Data quality is an issue as well – only 22 percent rate it to be excellent or good

The Protiviti report offers insights on these challenges and many other key findings of the survey. For example, internal audit groups with dedicated analytics functions and organizations that have attained a 'managed' or 'optimized' state of analytics maturity are far more likely to conduct continuous auditing. Protiviti's survey found that overcoming the constraints to build more sophisticated analytics processes requires:

  • A longer-term strategy and an implementation roadmap
  • Carefully chosen and well-crafted pilot programs
  • Clear direction (including investment in skills, tools and expertise) from CAEs and organizational leaders

"It can be overwhelming for organizations just getting started with using data analytics. There may be budget and resource constraints, employees need to learn new technologies and new processes need to be developed. We've found that companies just need to pick a starting point and get the help they need so that, over time, they can truly optimize their internal audit functions," added Christensen.

In addition to the 2017 study's special focus on data analytics, the Protiviti report includes sections on general technical knowledge; audit process knowledge; and personal skills and capabilities. In these sections, data analytics, continuous auditing and emerging technologies stand out as areas that CAEs and internal audit professionals need to improve their knowledge and expertise.

Webinar on April 12
Key findings from the survey will be discussed in a complimentary webinar on April 12 at 10:00 a.m. PDT. Protiviti's Christensen, joined by Protiviti Managing Directors Gordon Braun and Barbi Goldstein, will discuss the findings and add their insights during the 90-minute webinar. Please register here.

About the Survey and Resources
Protiviti's 2017 Internal Audit Capabilities and Needs Survey was fielded in December 2016 across the globe and surveyed 906 respondents. Respondents work in the public, private, government and non-profit sectors and are representative of virtually all industry sectors. Nearly two-thirds of respondents are from organizations with more than $1 billion in revenue.

The survey report, along with an infographic highlighting key results, a podcast and a short video, are all available for complimentary download at www.protiviti.com/IAsurvey.

From March 20th to 22nd, Protiviti is exhibiting at The Institute of Internal Auditors' General Audit Management Conference in Orlando, FL and has complimentary copies of the survey report available for interested attendees. For more information about the conference, please visit: www.protiviti.com/events.

About Protiviti
Protiviti (www.protiviti.com) is a global consulting firm that delivers deep expertise, objective insights, a tailored approach and unparalleled collaboration to help leaders confidently face the future. Through its network of more than 70 offices in over 20 countries, Protiviti and its independently owned Member Firms provide clients with consulting solutions in finance, technology, operations, data analytics, governance, risk and internal audit.

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.

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/internal-audit-departments-starting-to-embrace-data-analytics-yet-many-have-far-to-go-to-achieve-full-potential-according-to-latest-protiviti-survey-300426241.html

SOURCE Protiviti

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Digital transformation is about embracing digital technologies into a company's culture to better connect with its customers, automate processes, create better tools, enter new markets, etc. Such a transformation requires continuous orchestration across teams and an environment based on open collaboration and daily experiments. In his session at 21st Cloud Expo, Alex Casalboni, Technical (Cloud) Evangelist at Cloud Academy, explored and discussed the most urgent unsolved challenges to achieve f...
SYS-CON Events announced today that Synametrics Technologies will exhibit at SYS-CON's 22nd International Cloud Expo®, which will take place on June 5-7, 2018, at the Javits Center in New York, NY. Synametrics Technologies is a privately held company based in Plainsboro, New Jersey that has been providing solutions for the developer community since 1997. Based on the success of its initial product offerings such as WinSQL, Xeams, SynaMan and Syncrify, Synametrics continues to create and hone inn...
Digital Transformation (DX) is not a "one-size-fits all" strategy. Each organization needs to develop its own unique, long-term DX plan. It must do so by realizing that we now live in a data-driven age, and that technologies such as Cloud Computing, Big Data, the IoT, Cognitive Computing, and Blockchain are only tools. In her general session at 21st Cloud Expo, Rebecca Wanta explained how the strategy must focus on DX and include a commitment from top management to create great IT jobs, monitor ...
In a recent survey, Sumo Logic surveyed 1,500 customers who employ cloud services such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP). According to the survey, a quarter of the respondents have already deployed Docker containers and nearly as many (23 percent) are employing the AWS Lambda serverless computing framework. It’s clear: serverless is here to stay. The adoption does come with some needed changes, within both application development and operations. Tha...
Cloud Expo | DXWorld Expo have announced the conference tracks for Cloud Expo 2018. Cloud Expo will be held June 5-7, 2018, at the Javits Center in New York City, and November 6-8, 2018, at the Santa Clara Convention Center, Santa Clara, CA. Digital Transformation (DX) is a major focus with the introduction of DX Expo within the program. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive ov...
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, whic...
You know you need the cloud, but you're hesitant to simply dump everything at Amazon since you know that not all workloads are suitable for cloud. You know that you want the kind of ease of use and scalability that you get with public cloud, but your applications are architected in a way that makes the public cloud a non-starter. You're looking at private cloud solutions based on hyperconverged infrastructure, but you're concerned with the limits inherent in those technologies. What do you do?
Recently, REAN Cloud built a digital concierge for a North Carolina hospital that had observed that most patient call button questions were repetitive. In addition, the paper-based process used to measure patient health metrics was laborious, not in real-time and sometimes error-prone. In their session at 21st Cloud Expo, Sean Finnerty, Executive Director, Practice Lead, Health Care & Life Science at REAN Cloud, and Dr. S.P.T. Krishnan, Principal Architect at REAN Cloud, discussed how they built...
Recently, WebRTC has a lot of eyes from market. The use cases of WebRTC are expanding - video chat, online education, online health care etc. Not only for human-to-human communication, but also IoT use cases such as machine to human use cases can be seen recently. One of the typical use-case is remote camera monitoring. With WebRTC, people can have interoperability and flexibility for deploying monitoring service. However, the benefit of WebRTC for IoT is not only its convenience and interopera...
In his general session at 21st Cloud Expo, Greg Dumas, Calligo’s Vice President and G.M. of US operations, discussed the new Global Data Protection Regulation and how Calligo can help business stay compliant in digitally globalized world. Greg Dumas is Calligo's Vice President and G.M. of US operations. Calligo is an established service provider that provides an innovative platform for trusted cloud solutions. Calligo’s customers are typically most concerned about GDPR compliance, application p...
Modern software design has fundamentally changed how we manage applications, causing many to turn to containers as the new virtual machine for resource management. As container adoption grows beyond stateless applications to stateful workloads, the need for persistent storage is foundational - something customers routinely cite as a top pain point. In his session at @DevOpsSummit at 21st Cloud Expo, Bill Borsari, Head of Systems Engineering at Datera, explored how organizations can reap the bene...
With tough new regulations coming to Europe on data privacy in May 2018, Calligo will explain why in reality the effect is global and transforms how you consider critical data. EU GDPR fundamentally rewrites the rules for cloud, Big Data and IoT. In his session at 21st Cloud Expo, Adam Ryan, Vice President and General Manager EMEA at Calligo, examined the regulations and provided insight on how it affects technology, challenges the established rules and will usher in new levels of diligence arou...
Continuous Delivery makes it possible to exploit findings of cognitive psychology and neuroscience to increase the productivity and happiness of our teams. In his session at 22nd Cloud Expo | DXWorld Expo, Daniel Jones, CTO of EngineerBetter, will answer: How can we improve willpower and decrease technical debt? Is the present bias real? How can we turn it to our advantage? Can you increase a team’s effective IQ? How do DevOps & Product Teams increase empathy, and what impact does empath...
"I focus on what we are calling CAST Highlight, which is our SaaS application portfolio analysis tool. It is an extremely lightweight tool that can integrate with pretty much any build process right now," explained Andrew Siegmund, Application Migration Specialist for CAST, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that Evatronix will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Evatronix SA offers comprehensive solutions in the design and implementation of electronic systems, in CAD / CAM deployment, and also is a designer and manufacturer of advanced 3D scanners for professional applications.