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PwC’s Digital Services
Audit Automation and Data Analytics
www.pwc.com/digitalStrictly private and confidential
PwC’s Digital Services
Introduction and background
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PwC’s Digital Services
Introduction
Background• Director and Chartered Accountant leading Data Assurance and Insights for PwC in
the Middle East• Provides IT risk consulting services to a wide range of global and local clients• Knowledge and experience of multiple industries, including utilities, petrochemicals,
oil & gas, logistics and automotive• Experience in business operations, data management and assurance activities, as well
as data analytics program delivery
Area of Expertise and Skills• Data analytics programs• ERP and GRC solutions with a focus on security and controls• Data analysis such as process mining and process utilization• Data visualisation and BI reporting
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Twitter – @thomaspulling
Mobile – +971 (0)56 9930880
Email – thomas.d.pulling@pwc.com
PwC’s Digital Services
DRIVERS
500mtweets are sent every day
The power of digital and data grows every day.
Unlocking it is vital to stay relevant, and now 68%
of CEOs see the greatest return on investment is
in tools to do this.
Embedding independent and
meaningful data analytics into
every component of the audit
cycle to enhance the coverage,
efficiency and effectiveness of
audits, gives Internal Audit
more time to focus on
enterprise value and becoming
critical advisors to the
business.
GROWTH & ANALYSIS
90%of data was created in the last 2 years
The amount of data in the digital universe is
doubling every two years, and 85% of this
data is coming from new data sources.
DRIVERS
26bnunits in IoT by 2020
Two thirds of the Internet of Things will be
other things such as sensors, actuators and
new devices that monitor, control, analyse
and optimize our world.
GROWTH & ANALYSIS
0.5%of data is actually analysed
We aren’t making the most of the data we
have available and 30% of executives admit
intuition is still a key source for big decisions.
“
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PwC’s Digital Services
Where do you want to get to?
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PwC’s Digital Services
Defining audit automation
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The analytics maturity model represents the different levels for an IA function, with continuous auditing reflecting a position of true audit automation.
PwC’s Digital Services
What does continuous auditing mean?
Identify
Monitor
Illuminate
Change
Identify key risks across the lifecycle
which should be monitored
Monitor the environment continuously
using relevant metrics and KPIs which
are constantly refined and enhanced
Highlight and review exceptions that
arise from data flows and metrics as
they happen
Change the audit plan to account for
risk changes and remediate issues in
real time
Continuous Auditing
Plan and build
analytics
Connect data
sources
KPIs and
metricsKey audit
risks
Refine risks in
audit planFull
Integration
and visibility
Capture
exceptions
Dynamic
audit plan
Unplanned
auditsRefine false
positives
Assess
impact
of exceptions
Support
remediation of
issues
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PwC’s Digital Services
How do you get there?
How do you achieve true audit automation and embed data
analytics in everything that you do?
Continuous audits
Enhance and refine the supporting
team structure for analytics and
managing audit exceptions
Select key risks for monitoring and
build appropriate metrics
Manage data flows and links to key
sources to support monitoring
Continuously monitor key risks
through data analytics and ensure
audit plans reflect exceptions
Embed the capability
Develop further analytics to cover
all components of the audit
lifecycle
Share success stories and
demonstrate built capability to raise
awareness and momentum
Support further audits and
empower the Internal Audit team to
operate with a data mindset
Ensure training plans, supporting
teams and technology are sufficient
for the future
Pilot audits
Implement technology to support
some initial analytics and KPIs
Select a controlled number of
audits to perform data analytics
Identify key learning from pilot
audits and ensure audit
programmes are updated
Begin developing a suitable
support team
Strategy and support
Build the strategy, roadmap and
plan to achieve the target state
Circularise the strategy and get buy
in from key stakeholders
Define executive ownership and
sponsorship for the programme
Assess and define
Assess the current capability of the
team and supporting technology
Understand key risks and linked
data sources
Define the vision for a target state
PwC’s Digital Services 8
PwC’s Digital Services
What benefits can you expect?
InsightsGreater insights – you can
reposition IA as a value add
function and drive change!
CoverageIncreased coverage provides
opportunities for IA to identify
inefficiencies
PlanningEnables strategic plans to be more
real time and proactive, rather than
fixed schedule
ThinkingProviding more time to think,
aiding the shift from auditor to
business advisor
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PwC’s Digital Services
Where should you start?
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PwC’s Digital Services
Develop the roadmap for the future
Define the timeline and
roadmap to achieve
success
How do we achieve our vision?
What do we do and when?
How do we keep momentum?
Expected effort – 3 weeks
Articulate targets across
People, Processes and
Technology
What do we want to achieve?
Why do we want to do this?
How long will it take?
Expected effort – 2 weeks
Analyse the “as is” of the
team with data analytics
in mind
Where are we now?
What are we capable of?
Where might issues arise?
Expected effort – 2 weeks
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PwC’s Digital Services
Analyse the right data in the right way
While it is important to be able to find, access and connect the data, it’s vital to prioritise what is most important
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Start Here
Then work that way
Don’t start here or you’ll create a “data swamp” no one can or wants to use
Strategicobjectives / goals
Stakeholderpersonas
Stakeholderneeds
Data visualisations / KPIs Metrics
Standarddata model
Data sources(aggregate / root)
Source dataattributes
PwC’s Digital Services
What steps do you need to take?
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PwC’s Digital Services
Steps to take – People
One vision. One plan.
• Modify the existing team structure to include a data analytics team
• Recruit data analytics specialists with the right “coding” capability
• Identify data champions in the team to “bridge the gap”
• Develop a data focused training plan
• Focus attention on change management
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PwC’s Digital Services
Steps to take – Processes
One vision. One plan.
• Develop appropriate policies and procedures that align to those in the business
• Determine appropriate audits for data analytics to be embedded into
• Understand and update the existing audit programs to incorporate data tests
• Identify relevant data analytics for all parts of the audit lifecycle
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PwC’s Digital Services
Steps to take – Technology
One vision. One plan.
• Identify, evaluate and implement the appropriate tools for analyzing data for audits
• Define and implement a well controlled, independent architecture for hosting and analyzing all business data
• Understand and connect to key data sources that are required for data analytics across the audit lifecycle
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PwC’s Digital Services
What problems might you encounter?
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PwC’s Digital Services
Analytics programmes – why do they fail?
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The introduction of data analytics to the Internal Audit function needs to be viewed as a programme. This means it represents a significant period of change, and so there are clear risks to the success of the initiative.
PwC’s Digital Services
Common challenges in deploying data analytics
These are the typical challenges and issues you
can expect to face when embarking upon a data
analytics implementation for Internal Audit.
No. 1Change
Resistance to change from the Internal Audit team
members
No. 2IT support
Lack of support from IT in obtaining data
No. 3Momentum
Focusing time and resources to maintain
momentum
No. 4Understanding
Lack of understanding of the purpose, intention or
approach
No. 5Skills
Insufficient skills to sustain the change in the long
term
No. 6Data quality
Poor quality data that leads to difficult or unreliable
analysis impacting user confidence
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PwC’s Digital Services
Questions and answers
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PwC’s Digital Services
Data is the new oil… there is significant value and competitive power locked inside it. Only those organisations who have effective data analytics functions will be able to manage, control, transform
and analyse their data to harness its potential.
PwC’s Digital ServicesPwC’s Digital Services 21
PwC’s Digital Services
Thank you!
© 2016 PwC. All rights reserved. Not for further distribution without the permission of PwC. “PwC” refers to the network of member firms of
PricewaterhouseCoopers International Limited (PwCIL), or, as the context requires, individual member firms of the PwC network. Each
member firm is a separate legal entity and does not act as agent of PwCIL or any other member firm. PwCIL does not provide any services
to clients. PwCIL is not responsible or liable for the acts or omissions of any of its member firms nor can it control the exercise of their
professional judgment or bind them in any way. No member firm is responsible or liable for the acts or omissions of any other member firm
nor can it control the exercise of another member firm’s professional judgment or bind another member firm or PwCIL in any way.
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