Navigate the journey from basic data analysis to continuous monitoring
Today’s business climate is driving an expansion of the role of internal audit to be more consultative and with a stronger focus on risk management. Not only is internal audit being asked to become more efficient and effective in performing its traditional assurance role, expectations are heightened to also assess the effectiveness of risk management processes – a challenge that is amplified by declining or, at best, flat budgets, increasing complexities around regulatory compliance and fewer staff.
The case for audit analytics has been made: In 2010, “the use of automated tools or techniques” by internal audit functions qualified as a top-five strategic priority according to research from The Institute of Internal Auditors (The IIA) Today, a more practical focus is taking hold as organizations seek to successfully implement new audit technology.
Based on over 25 years’ experience, ACL has developed the Audit Analytic Capability Model, a framework for assessing different levels of audit analytic techniques and associated benefits. The model illustrates five progressive levels through which an internal audit department should be looking to evolve its use of analytics, and outlines the fundamental building blocks, in terms of people, process and technology that must be in place to optimize benefits.
ACL developed the model to help organizations more clearly evaluate their use of audit analytics and to better understand, plan and communicate what needs to be done to achieve and increase benefits and success. This white paper will provide an introduction to the ACL Audit Analytic Capability Model and help organizations build a roadmap for increasing analytics testing throughout their internal audit function.