Posts Tagged “Audit International”
Well during and after Covid-19, the day-to-day working structure of audit has changed a lot. With remote working arrangements and the absence of in-person meeting with clients, it’s been a real testing time for those who have joined the audit profession in 2020 and after. Many of the challenges faced by auditors are limited access to client facilities, personnel, financial records, and documentation. There is an increased need to understand the client’s risk profile and assess how the pandemic has affected their business, due to which auditors are now considering more critical view of clients business rather than just relying on numbers.
Benefits of remote auditing: There are many benefits of remote auditing, which can be summarized here:
- Better use of Technology: Now a day’s most of the entities are digitized and cloud based, allowing an auditor to access the records of clients at his own convenience.
- Virtual meetings: Auditors are wondering at the number of meetings they are attending now despite being confined at homes. Skype, Zoom and alike technology solutions have made it possible
- High reduction in Outstation travelling cost: Businesses were spending billions of money on travels annually; however remote auditing requires zero travel cost.
- Reduction in travel time: Auditors are now working in hybrid mode and travels only when required to attend the office in person
Disadvantage of remote auditing: The remote auditing also has some limitations which are summarized below:
- Limitation on physical audit: Virtual audit is not feasible for audits at floor factories or physical verification of warehouse at manufacturing company.
- Inadequate personal interaction with process owner: Personal interaction with the process owner is limited during a remote audit. Avoiding eye contact, adjusting seat, constantly restless are some of the indications can be observed more clearly during an in-person meeting
- Network interruption leading to inadequate discussion: If network connections are not reliable, they can interrupt interviews and meetings and can also limit access to the database for fetching objective evidence for review.
- Inadequate audit results: Remote audits should not be used as a cost-saving measure. They should only be considered if the audit objectives can be met, beyond any doubt.
Based on the situation, remote auditing can assist in reducing digital risk, minimize traveling time and its cost, and encourage safety. But it has its own limitation. To win with remote, clients business needs to have the perfect combination of ICT and a forward-thinking tech culture. In the future, remote will continue to be an important component of auditing with its limitation to on-site visits. Tech savvy businesses will continue to leverage both solutions to create more robust and auditor-friendly strategies.
“Audit International are specialists in the recruitment of Auditors and various Corporate Governance Professionals including Internal Audit, Cyber Security, Compliance, IT Audit, Data Analytics etc across Europe and the US.
If you would like to reach out to discuss your current requirements, please feel free to reach us via any of the following:
- Switzerland 0041 4350 830 59 or
- US 001 917 508 5615
The job profile of the Data Scientist is still young, but is often searched for on the job market. They are required in many industries, such as:
• Banking and insurance
• Business and organizational consultancies, market researching
• Social Media, Telecommunications, online tradinging and network management
• Bio-, pharmaceutical, chemical and medical industries
In 2012, Tom Davenport, Professor at the Harvard Business School, has described the competence profile as following: „… a hybrid of data hacker, analyst, communicator, and trusted adviser. The combination is extremely powerful – and rare.“
In times of “big data”, Data Scientists are experts in demand, who are paid above average and enjoy great freedom in companies as “gold diggers”. Using methods of mathematics, computer science and statistics, they gain facts and knowledge from large amounts of data, the “gold of the 21st century”, and discover new business areas. In addition, they are something like interpreters. They formulate the data records into legible results and display the essential information in a comprehensible language.
Data Scientists are trained in statistics, graph theory and other mathematical fields, and are proficient in methods such as data mining, process mining, machine learning and natural language processing (NLP). Added to this is knowledge from practical computer science. Knowledge of operating systems, databases, networks and data integration tools, as well as the most important programming languages and analytics tools are mandatory. Furthermore, knowledge about the Hadoop ecosystem, social networks and other systems from the internet and big data environment is a compulsory requirement for professional practice. The competency profile is that of an all-round talent and accordingly (currently) difficult to find.
The Data Scientist and the financial function within the company
The question whether a controller can assume the tasks of a Data Scientist must be clearly denied in the context of the described competence profile. The current opinion in the industry is, that it is illusory to believe that controllers could also assume the tasks of a Data Scientist. However, controllers should know the job profile of a Data Scientist as well as the possibilities and limitations of Big Data. The cooperation between the tasks of a controller and a Data Scientist is an important source for the future economic success of companies.
The Data Scientist and Auditing
The advancing digitization also places new challenges on internal auditing in the selection of the audit methodology. Data Science offers the possibility to consider the analytics of data masses as a test step within an audit and in this way to create an additional benefit. This means, however, that the internal audit department must also acquire expertise in data science in addition to the already acquired competences, such as finance, business management and compliance. Since an individual auditor can hardly have all the competences mentioned above, these should be at least available within the team. If necessary, remember to include an external Data Scientist.
Along the lines of internal auditing, the external auditing is placed before conditions that were changed by digitization: the flood of data, the appropriate audit methods as well as the concern of finding young recruits within the auditors underline the need for efficiency gains. The surge in job advertisements for data scientists in audit centers, as well as first attempts to use artificial intelligence in this area, underscores this.
This feature blog was written by Prof. Dr. Nick Gehrke (Zapliance)