Continuous Auditing and Continuous Monitoring
…increasingly becoming a way for organizations to create value…
Data analytics and continuous monitoring can help the business and internal audit simplify and improve the audit process through increasing operational efficiencies, reducing costs, and detecting potential fraud, errors, and abuse earlier — all while providing a higher quality audit. Now continuous monitoring is also increasingly becoming a way for organizations to create value.
The use of data analytics tools and techniques is helping to fundamentally transform and improve audit approaches. Consider the traditional audit approach, which is based on a cyclical process that involves manually identifying control objectives, assessing and testing controls, performing tests, and sampling only a small population to measure control effectiveness or operational performance.
Fast forward to a continuous auditing approach using repeatable and sustainable data analytics and the approach becomes much more risk-based and comprehensive — audit at the speed of the business. With data analytics, organizations have the ability to review every transaction — not just a sampling — which enables a more efficient analysis on a greater scale.
In addition, leveraging data analytics also accommodates the growing risk-based focus on fraud detection and regulatory compliance.
Remedyne has many built-in checks that scan master data and transactions and create alerts for suspicious transactions.
For example, a user changes bank details of a vendor before the payment run and changes it back afterwards. Remedyne will create an alert with all details:
The Remedyne analyst gets all relevant information for this alert with a single mouse click, such as details who has done changes, and links to relevant information such as vendor master data, posting documents, and in this case details on the payment run.
He can then investigate the case, add details to the alert, and approve/reject the transaction accordingly.
Note that approving/rejecting does not change the business transaction but is for documentation purposes only.