Reach the Everest of Technical Auditing Designation
By David Chiang CA.CIA, CMC, ACDA
Today’s business environment of organizational complexity and economic uncertainty has led most global firms to embrace data analytics. Computer Assisted Audit Techniques (CAATs) has become a best practice for companies of every shape and size. But research shows there’s a wide disparity between the need for technology-enabled audits and the number of audit professionals who are proficient with data analytics.
In its 2009 “State of the Internal Audit Profession” survey, PricewaterhouseCoopers reported that internal audit is grappling with a growing skills gap – especially when it comes to working with major ERP systems. Half of the respondents said that less than 25% of their non-IT auditors have experience with the company’s ERP system, and only 28% said that they use data mining and data analysis tools in more than 25% of their audit work.
According to the PwC report, “such a lack of IT experience has implications for many organizations, since it may mean that auditors can’t effectively audit the related processes and identify potential control deficiencies, make recommendations to create efficiencies, or even access reports needed to do their jobs more effectively.”
The report concludes that internal audit must get up to speed in ERP systems and data analytics: “Embracing technology at all levels, strategic and tactical, will enable internal audit to significantly increase its relevance to the technology-enabled organization and increase its productivity as well.”
The Institute of Internal Auditors (The IIA) also released an October 2009 report, entitled “Recent Impacts on the Staffing and Sourcing of North American Internal Audit Activities,” which studied the top areas where internal audit skills are lacking or insufficient. Data analytics was named the second highest risk area among both Fortune 500 companies (52%) and all survey respondents (48%), just behind International Financial Reporting Standards (IFRS).
Organizations eager to close the technical skills gap are beginning to understand that auditors need more technology training. Understanding and practice, however, don’t always meet. A 2009 KPMG IT Internal Audit Survey reported that, “although training is high on the agenda for most organizations, hours devoted to training are disappointingly low. The survey found that 29% of organizations devote less than one week per year to training staff.”
Employers are searching for cost-effective ways to deepen staff knowledge of technology-enabled audits, but most importantly, they’re seeking professional candidates who are already proficient with data analytics and automated audit techniques. As companies work to stretch resources and boost productivity, auditors with recognized technical skills stand out from the pack. In literally stacks of recent reports, employers say they need auditors who bring strong technical skills to the table – and one of the most effective ways to recognize data analysis skills is through formal certification.
ACL Services Ltd. has a certification program that sets the industry benchmark for technical proficiency and professional expertise in using ACL software. Earning the ACL Certified Data Analyst (ACDA) designation enhances professional development, while validating technical skills and ensuring auditors meet the performance standards required to address key business challenges.
“The future of all significant financial analysis – from accounting to budget work to auditing – requires this kind of certification,” says David T. Miod, an ACDA holder and the mission support accountant for Defense Finance & Accounting-Europe, the accounting group of the U.S. Department of Defense. “Financial professionals need to have technical expertise. It just makes sense.”
Using his exceptional data analysis skills and ACL technology, Miod led a team that identified over $2 billion in unused budget balances for the U.S. Air Force by analyzing over three million records from the previous six years. The project has given DFAS-Europe greater insight and opportunities to improve business processes, while helping the Air Force to implement controls that will reduce unexecuted balances in future years. “With this level of data analysis, the Air Force has taken huge financial steps forward, right through to the Pentagon,” says Miod. “Technical skills have been critical in my work and my career as a whole. I would recommend the ACDA designation to anyone who wants to stay ahead of the curve.”
Miod is currently evaluating new career opportunities to pursue once his existing contract expires in 2011, and says both government and private businesses place a higher value on candidates with certifications than ever before. “The ACDA puts another feather in my cap and demonstrates that I can look for anomalies and promote process improvements.”
Achieving the ACDA designation also demonstrates the ability to manage increasing demands – such as high data volumes, disparate systems and applications, tighter reporting standards, and a complicated regulatory environment. Candidates must pass a daylong examination session to earn the ACDA designation. And while they’re not required for certification, the best way to prepare is by completing several training courses, including ACL 105 (Foundations of ACL Concepts and Practices) and ACL 303 (Advanced ACL Concepts and Techniques). Until March 1, 2010, AuditNet members who have completed these courses can apply for ACDA by Experience rather than writing the exam. More information can be found at www.acl.com/AuditNetACDA.
At ACL, there has been a 100% increase in the number of ACDA holders in just one year. Awareness and demand for the designation is growing, while some companies now use the ACDA to validate data analysis proficiency among their own staff. And clearly, the professional market is still extremely competitive. The IIA staffing survey referenced earlier revealed that 23% of the 817 participating firms reported staff reductions in 2009. Another 12% reported projected staff reductions for 2010.
“The ACDA shows prospective employers that a candidate has superior ACL skills and is well equipped to perform technology-enabled audits,” says Michael Keiffer, an ACL master trainer who also holds ACDA, CPA, CIA and CISA designations.
Designations such as the ACDA show both current and potential employers that an auditor can leverage powerful data analysis technology to validate internal controls and strengthen business processes. It’s an effective way to boost your career. “Audit candidates with strong data analysis skills can expect to see that expertise reflected in their professional compensation,” agrees Janene Haddix, another ACDA-certified ACL trainer. “The ACDA designation is a great way for auditors to enhance their value in a competitive market.”
The message is unmistakable. Automated data analysis has emerged as a critical best practice for the internal audit profession, but great results can’t be achieved without technically proficient staff. By obtaining the ACDA designation, auditors at every level of practice can strengthen their careers, find competitive edge in a tough market, and meet the growing challenges of today’s business and economic climate.
For more information on the special offer for AuditNet members to apply for ACDA by experience visit: www.acl.com/AuditNetACDA.
Candidates must pass a daylong examination session to earn the ACDA
designation. And while they’re not required for certification, the best
way to prepare is by completing several training courses, including ACL
105 (Foundations of ACL Concepts and Practices) and ACL 303 (Advanced
ACL Concepts and Techniques). Until March 1, 2010, AuditNet members who
have completed these courses can apply for ACDA by Experience rather
than writing the exam. More information can be found at www.acl.com/AuditNetACDA.
David Chiang, CA.CIA, CMC, ACDA is a recognized professional on the use of audit analytics to monitor organizational compliance. He has presented his theories and case studies at numerous internal audit and system control conferences throughout North America.
As a Chartered Accountant, Certified Management Consultant and Certified Internal Auditor , David has extensive experience in analysis, fraud detection, and system integration consulting. He is currently General Manager and Director, Professional Services with ACL Services Ltd. – a Vancouver-based software company that provides audit analytic technologies to the Governance, Risk and Compliance market.
David is a member of the The Institute of Internal Auditors (The IIA), Canadian Association of Management Consultants (CAMC) and Canadian Institute of Chartered Accountants (CICA). He was twice elected to the Council of the Institute of Chartered Accountants of BC (ICABC), which is responsible for the governance of the accounting and audit profession in BC. He currently serves on the ICABC Professional Conduct Enquiry Committee and Rulings Committee.
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