Accounting, Auditing & the Robotic Process Automation (Oh My!) · • Rules-based...

Accounting, Auditing & the Robotic Process Automation (Oh My!)

Presented by:Justin Bailey & Chris Heitkamp

Moderated by:Tonya Preston

TODAY’S PRESENTERS

Chris HeitkampConsultantCincinnati

Justin BaileyConsultantCincinnati

Accounting, Auditing & the Robotic Process Automation (Oh My!)

Accounting and audit are key areas where Robotic Process Automation (“RPA”) is transforming the way businesses operate, because it is not limited to just performing simple calculations, but rather the automation of entire processes. As these technological advancements occur, organizations are more capable of increasing efficiency while making more informed business decisions.

Introduction

• What is RPA?

Evolution of Automation

• Macros & Scripts

• BPA (Business Process Automation)

• RPA (Robotic Process Automation)

• IPA (Intelligent Process Automation)

• Algorithmic Business

What can bots do?

• Rules-based triggers/follow if/then decisions/rules• Data Scraping from web/forms• Data Entry• Third Party Integrations• Document Image Capture• Audit trail/metrics• Open emails and attachments

What can bots do? (Continued)

• Log into/connect to web/enterprise applications• Copying & pasting• Move files & folders• Extract structured data• Read and write databases• Make calculations

What can bots do? (Continued)

• Match Invoices• Read Contracts• Continuously check if transactions are still in compliance• Send & receive messages• Compare records (tables across multiple applications)• Automate activities• Learn how to respond to events or occurrence

What do bots need?

• Electronic documentation• Structured data• Rules-based processes • User access rights

RPA Implementation

• Identify, assess, and prioritize automation opportunities

• Planning and discovery

• Business Case and Value of RPA

• Initial Execution

• Benefits Realized and RPA Steadied

Identify, assess, and prioritize automation opportunities

• Extensive manual processes

• Repetitive tasks

• Well defined, structured data

• Unlike; constant updates to a process

Planning and discovery

• Center of Excellence (CoE)• Provides structure and governance

• Who will monitor the bots? • Dedicated team within the CoE

• Types of CoE• Centralized• Hub and Spoke

Planning and discovery (Continued)

• Implementation Timeline

• Skill Development Plan

• Software Selection• Key vendors

• Optimize and Re-engineer current processes

Business Case and Value of RPA

• Benefits• Metrics

• Full-time equivalents• ROI• Improved Customer Satisfaction

• Pain Points• Visibility

Initial Execution

• Stakeholder approval

• Define the path moving forward

• Change Management

• Work smarter, not harder

• Development and Reskilling

Initial Execution (Continued)

• Pilot Automation

• Collaboration

• Continuous Monitoring

• Metrics/KPIs

Benefits Realized and RPA Steadied

• Pilot requires close human supervision

• Lessons learned

• Refinement of RPA

• Scaling strategy

High Impact functions for RPA

• Structure and Regulation• US GAAP• IFRS• Federal, state, and local laws

• Use cases• Accounting/Finance• Audit• GRC• Human Resources• Data Analytics

High Impact/Use Cases– Accounting & Finance

• Accounts Receivable/Billing• New customer Setup• Credit approval• Cash receipts processing• Pricing reviews• Send late notices via email• Customer complaint tracking

• General Accounting• Data extraction from systems• Data validation• Calculation and processing of rebates/discounts &

commissions• Collect and abstract data for lease or revenue

transactions (accounting standard changes)• Journal Entries• Account Reconciliations

• Accounts Payable/Procurement• New vendor setup• Matching requisitions to purchase orders• Data entry and payment preparation• Invoice processing

• FP&A/Management Reporting• Prepopulate budgets/forecasts using historical

and market data• Create variance reports

• Tax• Sales & use tax reconciliation• Automated generation of footnote disclosure

tables• Computing interest and penalties on uncertain

tax positions• Prior year data rollforward• Renewal monitoring/processing

Use Cases – ITGC Testing

• New user access

• Terminated user access

• User access reviews

Use Cases – Business process control testing

• Manual JE review• New hire setup• New customer setup• New vendor setup• Duplicate payment review• Fixed asset recons• Rev rec monitoring

Use Cases – Internal audit activities

• Creating status reports• Drafting audit reports• Document testing lead sheets/workpaper prep• Artifact requests & tracking• Identify issues in issue management platforms• Remediation follow-up• Tracking and monitoring Key Risk Indicators (KRI’s)• Reconciliation of matrices to testing observations, issues log, and

final report to ensure alignment

Use Cases – GRC data download/upload

• Consolidate data for report development from disparate compliance/security platforms

• Distribute or publish reports in a location

• Prepopulate annual reports by collecting data from multiple finance systems and reports

Use Cases – Human Resources

• Application Screening

• Onboarding

• New Hire Setup

Intelligent Process Automation (IPA)

• Intelligent automation toolbox • Chat bot• Machine Learning (ML)• Natural language processing (NLP)• Optical Character Recognition (OCR)• Speech recognition• Supervised learning• Deep learning

Data Analytics

• How does it relate?

• How does it benefit?

• Use cases

Compliance and Regulations

• Relatively new

• Full Population Audits

• Oversight

• Operational Goals

Benefits

• Reduces human error/Consistent/Reliable/Accurate (24/7/365)• Do more, faster• Remain in control of processes (eliminates the need to offshore) Right

shoring• Cost reduction, Reduces manual operations costs by 25-40%, or more• Ease of implementation (low risk, noninvasive technology; can be laid

over existing systems)

Benefits (Continued)

• Focus on the value-adding/creating tasks for employees, which leads to productivity increases

• Increased employee satisfaction/lower attrition• Improved compliance and reporting/full audit trail• Scalable (across industries, geographies, functions)• Duration (typically takes 9 to 12 months with an ROI less than 1 year)

Risks

• Risk of missing rules (RPA can only do what it’s told to do)

• Processes not mapped correctly (activities may be performed incorrectly or be incomplete)

• Natural human safeguards removed (if you get it wrong, you consistently get it wrong)

• Human access to bots leads to SOD risk (access to bot credentials must be controlled to prevent unauthorized access)

Risks (Continued)

• Bots may be set up with excessive access to systems

• Bots/bot environment may become unavailable (if the system crashes or goes down)

• It is estimated that between 30-50% of initial RPA projects fail because of inadequate planning and execution

Conclusion

• When implemented correctly, RPA can benefit:• Customers• Staff• Management• IT• Processes• Profitability

THANK YOU!

Chris Heitkampcheitkamp@clarkschaefer.com

Justin Baileyjbailey@clarkschaefer.com