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AuditNet® Training::2015-data-analytic-training-goals-benefits-and-reasons-to-attend

Series Recordings are Now Available

Why You and Your Team Should Attend

Watch the below short video to learn more on how you can maximize analytics in 2016 with our 22 CPE training program for you and your team:

Improving Your Analytics Using Excel - YouTube Video

Why Attend our Analytics Training?

  • Provides a low-cost opportunity to train on analytics throughout 2016 with 22 CPE credits. 
  • Allows participants to discover analytics in an easy to understand common platform where they already have much experience: Microsoft ExcelTM.
  • Utilizes a case study format to improve applicability of analytics to actual audit situations
  • Webinar courses are provided twice a year to ensure an opportunity to obtain CPE credits for each of the seven courses. 
  • 12 month access to the video-taped presentations is provided as a just-in-time resource for any upcoming audits or for anyone unable to attend the live webinar broadcast.
  • Get access to webinar data files, audit programs, and Excel macros prior to the event, which are sometimes worth more than the cost of the event itself.
  • Raises the collective IQ of the entire department towards analytics to facilitate discussion, data extractions, and analytic explorations.

Who Should Attend

The training program is designed to be applicable and interesting to all members of the audit team from staff members to executive management. In any department, there are analytic champions but there are generally a higher ratio of team members who lack this advanced proficiency. Some team members may view analytics as challenging and therefore, may not find the appropriate time to maximize this effective set of tools. Analytics need not be intimidating and with a consistent learning plan for 2016, everyone on the team can move to using a common framework or “analytic language” to aid audit discussion, testing and handoff of results. Make a commitment in 2016 to raise up the entire department’s analytic IQ with short, 2 CPE classes starting in February 2016.

Benefits of Analytics

Aside from providing relevant and timely information to management, below are a list of five benefits derived from the use of analytics in the audit function (please see all references in the below table):

1)      Using Analytics Helps Meets Current Audit Standards – Analytics are quickly becoming a requirement in auditing organizations.  See below examples:

a.       Concerns of malpractice for auditors not using technology was discussed over seven years ago - (NYSSCPA article). 

b.      The Institute of Internal Auditing Standard 1220.A2 states, “In exercising due professional care, internal auditors must consider the use of technology‐based audit and other data analysis techniques”.

c.       The PCAOB inspection reports are noting various deficiencies in audits around the use of technology in auditing revenue, management override of controls, and completeness of general ledger information.

d.      PWC’s 2014 State of the Internal Audit Profession Study confirmed that the majority of Chief Audit Executives understand the value of analytics in improving coverage, depth, and quantification of issues, so much so that Big Data and Use of Analytics were the top rated area of where audit departments needed to increase focus in the coming year.

2)      Analytic Surveillance Has Been Proven to Reduce Fraud by Two-Thirds in Size While Timeframes to Detect Fraud Drop 50% - Per the ACFE’s 2014 Cost of Complacency Report – frauds that went on for over 61 months were nearly a million dollars ($965,000).   By way of contrast, a management tip detected fraud within 18 months and at a cost to the organization of $149,000.  However, an organization using surveillance and monitoring (which heavily relies on analytics) versus waiting for a tip reduced fraud costs 67% to $49,000 while the time to detect in months dropped 50% from 18 months to 9 months.   As further explained in the IIA Research Report – Proactively Detecting Fraud Using Computer Audit Reports, “with the aid of inexpensive and readily available software, using computers to generate accounting fraud clues not only makes sense to detect fraud – it is an absolute necessity is to fulfill the duty as the public’s watchdog.” 

3)      Cost Benefits and Savings Derived From Analytics Exceed Software and Training Budgets in Multiples – As explained more fully in Cost Recovery – Turning Your Accounts Payable Department Into a Profit Center, cost recovery analytics simply focuses on the thin margins of error in any business process which should be managed for when they spiral out of control into larger issues.  Cost savings can take the form of past payments to vendors, improved negotiations with vendors, and process inefficiencies that can all be quantified into bottom line cash savings for the organization.  These costs on average are multiples of what is spent on analytics and training to support them.

4)      S-Ox and Control Testing Can Be Automated To Reduce Testing Expense While Improving Audit Quality – Using analytic audit programs and data request letters provided in the course, each audit team has the opportunity to automate their S-Ox testing. Analytic procedures have been proven over time to cost $0.01 compared to $4 for a standard audit of the same evidence.  Further, since analytics use 100% of the data for testing, they provide a higher quality audit test.  In addition, as stated above, cost savings of process improvements can be quantified to form a business case for positive change.  

5)      Provides Peace of Mind to Executive Staff and External Auditors Which Should Lower Audit Fees – A recent 2013 study Do Audit Fees Reflect Risk Premiums for Control Risk determined that moving from an audit without control issues to one with control findings led to an increase in external audit fees of 22% as the firms respond to the risk of the engagement.  Further, moving from an uncontrolled to now control free audit led to an on average decrease in audit fees of 6% in the first year.   Analytics, especially control exception reports, play a large part in managing and testing organizational controls.  Given their high audit quality value and 100% testing nature, they can provide further assurance to external auditors of the effective operation of company controls.  Running analytics therefore gives you some peace of mind that you looked at the data and provided some diligent effort to detect errors or fraud within the business process.

Links to Studies Quoted in the Above Marketing

1

Auditnet®’s  2012 Data Analytic Survey

http://www.auditnet.org/publications--2/auditnet-surveys

2

2012 State of Technology Use by Auditors

http://www.auditnet.org/publications--2/auditnet-surveys

3

The Internal Audit Analytics Conundrum – Finding Your Path Through Data

http://www.pwc.com/ca/en/risk/publications/pwc-the-ia-analytics-conundrum-finding-your-path-through-data-2014-01-en.pdf

4

NYSSCPA Article - Using Technology to Mitigate Fraud Malpractice Claims

http://www.nysscpa.org/trustedprof/107/tp11.htm

5

ACFE Report to the Nation 2014

http://www.acfe.com/rttn-download-2014.aspx

6

2014 State of the Internal Audit Profession Study

http://www.pwc.com/us/en/risk-assurance-services/publications/pwc-2014-state-of-profession.jhtml

7

ACFE 2014 Cost of Complacency Report

http://www.fraudweek.com/uploadedFiles/Fraudweek/content/documents/cost-of-complacency.pdf

8

IIA Research Report – Proactively Detecting Fraud Using Computer Audit Reports

http://www.theiia.org/bookstore/product/proactively-detecting-occupational-fraud-using-computer-audit-reports-1177.cfm

9

Cost Recovery – Turning Your Accounts Payable Department Into a Profit Center

http://www.wiley.com/WileyCDA/WileyTitle/productCd-0470322381.html

10

Do Audit Fees Reflect Risk Premiums for Control Risk?

http://business.fullerton.edu/centers/ccrg/WorkingPapers/CCRG2013-07.pdf

11

PCAOB Inspection Report

http://pcaobus.org/Inspections/Documents/BD_Interim_Inspection_Program_2014.pdf

Speaker Details

Rl Pic   Rich Lanza CPA, CFE, CGMA President of Cash Recovery Partners, LLC, helps companies identify their hidden financial assets, mostly using technology and referring them to specialists. He has a decade and a half of experience in audit technology and recovery auditing, becoming a leading authority in these areas. 

Rich, The Data Magician, has written 8 books, co-authored 11 others and has more than 50 articles to his credit. He has been awarded by the Association of Certified Fraud Examiners for his research on proactive fraud reporting. He is also a regular presenter for CFO.com, the Institute of Internal Auditors, Association of Certified Fraud Examiners, Auditnet LLC and Fraud Resource Net LLC.  Rich has worked for companies ranging in size of $30 million to $100 billion and in all, has helped them find money through the use of technology and recovery auditing

To contact Rich, please Email him at  rich@richlanza.com  or see his website at  www.richlanza.com