Data Analytics and Process Mining in Internal Audit › ak-sar-ben › Events...ANALYTIC PROCESS...

Internal Audit, Risk, Business & Technology Consulting

INNOVATE. TRANSFORM. SUCCEED.

Adapt to the new business reality.

Data Analytics and Process Mining in Internal Audit IIA Ak-Sar-Ben Chapter – 10/22/2019

© 2019 Protiviti Inc. An Equal Opportunity Employer M/F/Disability/Veterans. Protiviti is not licensed or registered as a public accounting firm and

does not issue opinions on financial statements or offer attestation services. All registered trademarks are the property of their respective owners. Technology Consulting

*Inclusive of Protiviti's Member Firm network

Protiviti provides consulting solutions

in finance, technology, operations, data, analytics,

governance, risk and internal audit to our clients

through our network of more than 75 offices in over

27 countries

• We serve 60% of Fortune 1000®

• We serve 35% of Fortune Global 500®

• We also work with smaller, growing companies,

including those looking to go public, as well as with

government agencies.

• Protiviti is a subsidiary of Robert Half

International

PROTIVITI OVERVIEW

2

Over 27 countriesin the Americas, Europe,

the Middle East and

Asia-Pacific

75+offices

Our revenue*:

$1.04 billionin 2018

More than

6000+professionals**



*Protiviti Member Firm

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1314

1518

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1917

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2426

The Americas Europe/Middle East Asia-Pacific

1. UNITED STATES

Alexandria, VA

Atlanta, GA

Baltimore, MD

Boston, MA

Charlotte, NC

Chicago, IL

Cincinnati, OH

Cleveland, OH

Dallas, TX

Denver, CO

Ft. Lauderdale, FL

Houston, TX

Kansas City, KS

Los Angeles, CA

Milwaukee, WI

Minneapolis, MN

New York, NY

Orlando, FL

Philadelphia, PA

Phoenix, AZ

Pittsburgh, PA

Portland, OR

Richmond, VA

Sacramento, CA

Salt Lake City, UT

San Francisco, CA

San Jose, CA

Seattle, WA

Stamford, CT

St. Louis, MO

Tampa, FL

Washington, D.C.

Winchester, VA

Woodbridge, NJ

2. ARGENTINA*

Buenos Aires

3. BRAZIL*

Rio de Janeiro

São Paulo

4. CANADA

Kitchener-Waterloo

Toronto

5. CHILE*

Santiago

6. COLOMBIA*

Bogota

7. MEXICO*

Mexico City

8. PERU*

Lima

9. VENEZUELA*

Caracas

10 FRANCE

Paris

11. GERMANY

Frankfurt

Munich

12. ITALY

Milan

Rome

Turin

13. THE

NETHERLANDS

Amsterdam

14. UNITED

KINGDOM

Birmingham

Bristol

Leeds

London

Manchester

Milton Keynes

Swindon

15. BAHRAIN*

Manama

16. KUWAIT*

Kuwait City

17. OMAN*

Muscat

18. QATAR*

Doha

19. UNITED ARAB

EMIRATES*

Abu Dhabi

Dubai

20. SAUDI ARABIA*

Riyadh

21. EGYPT*

Cairo

22. SOUTH AFRICA*

Durban

Johannesburg

23. AUSTRALIA

Brisbane

Canberra

Melbourne

Sydney

24. CHINA

Beijing

Hong Kong

Shanghai

Shenzhen

25. INDIA*

Bengaluru

Chennai

Hyderabad

Kolkata

Mumbai

New Delhi

26. JAPAN

Osaka

Tokyo

27. SINGAPORE

Singapore

*Protiviti Member Firm

GLOBAL PRESENCE

3



One of the Top 15

Best Firms to Work For —

Consulting magazine

(2014, 2015, 2016, 2017, 2018, 2019).

One of Fortune magazine’s 100

Best Companies to Work For

(2015, 2016, 2017, 2018, 2019).

Recognized as a Best Place to

Work in Atlanta, Baltimore, Chicago,

Dallas, Denver, Florida, Houston,

Los Angeles, New Jersey, Orlando,

Minneapolis, Philadelphia, Phoenix,

Pittsburgh, Salt Lake City, San

Francisco Bay Area, Tampa Bay,

Texas.

RECOGNIZED FOR OUR GREAT PEOPLE

4



TODAY’S PRESENTER

Eric Wojcik is a Senior Manager in the Enterprise

Data and Analytics practice of Protiviti.

He has over 15 years of Analytics experience and

leads the SAP Analytics Strategy function.

[email protected]

mailto:[email protected]



WHERE DO WE BEGIN?

6

𝟏. 𝟎𝟎 𝟑𝟔𝟓

𝟏. 𝟎𝟏 𝟑𝟔𝟓

INNOVATION AND ANALYTICS IN INTERNAL AUDIT



PROTIVITI’S 2017 INTERNAL AUDIT CAPABILITIES AND NEEDS SURVEY

Data analytics is gaining a foothold in internal auditing 1

Cybersecurity, cloud, mobile tech and big data are top-of-

mind4

Business and digital transformation is drawing more

attention5

Most internal audit shops are still in their “analytics infancy”2

The more mature analytics capabilities are, the greater value

they’re perceived to deliver 3



2018 Internal Audit Capabilities and Needs Survey

9




OUR VISION FOR NEXT-GENERATION INTERNAL AUDITING

10

The specific governance structures, methodologies and enabling technologies that next-generation internal audit

groups introduce vary. However, nearly all the transformations Protiviti has supported have addressed most, if not

all, of the following competencies, qualities and components in three broad categories:

Next

Generation

Internal Audit

IA Strategic Vision

Resource & Talent

Management

Aligned AssuranceAdvanced Analytics

Process Mining

Machine Learning (ML)

Artificial Intelligence (AI)

Continuous Monitoring Dynamic Risk Assessment

High Impact Reporting Agile Audit Approach

Robotic Process

Automation (RPA)

Organizational

StructureNext-

Generation

Internal

Audit




11



2019 HIGHLIGHTS

12


does not issue opinions on financial statements or offer attestation services. All registered trademarks are the property of their respective owners. Technology Consulting13

2019 HIGHLIGHTS (CONT.)



2019 HIGHLIGHTS (CONT.)

14



ENTERPRISE DATA AND ANALYTICS: WHAT’S TRENDING IN THE MARKETPLACE

15

* IDC FutureScape: Worldwide CIO Agenda 2019 Predictions, Oct 2018 | Doc #US44403818. ** Competing in the Cognitive Age, Protiviti 2018.

*** Insights-Driven Businesses Set The Pace For Global Growth, Forrester, October 2018. **** Big Data Executive Survey 2018, NewVantage Partners, 2018.

***** Constellation Research 2018 Digital Transformation Study, 2019. ****** The Shifting Landscape of Finance, Protiviti Finance Trends Survey Report, 2018.

Compelled to curtail IT spending, improve

enterprise IT agility, and accelerate innovation,

70% of CIOs will aggressively apply data

and AI to IT

operations, tools and processes by 2021.*

Within two years, businesses expect to derive

major gains from advanced

AI in strategic and financial performance,

ability to scale global business and greater

market share.**

Insights-driven businesses are growing at an

average of more than 30% annually and are

predicted to earn $1.8 trillion annually by

2021.***

79.4% of executives say they fear

disruption from data-driven competitors, and

54.4% report that an inability to be nimble

and compete on data is the biggest

competitive threat they face today.****

An estimated 87% of successful digital

transformation projects incorporate an

underlying data component.*****

The standout priority for CFOs and financial

leaders is data - specifically data governance,

security and privacy, analytics and associated

process improvements.******


does not issue opinions on financial statements or offer attestation services. All registered trademarks are the property of their respective owners. Technology Consulting16

DATA AND ANALYTICS BASELINE



THE 10,000 FOOT VIEW

18

Analytics BI

2

Enhanced data analytics

Insights

Data analysis

performed by users

Change, adjustment,

optimizations

Leadership

Change Management

Consumed in decision-

making and action

Business

Process

Data Consumption



ANALYTIC PROCESS CHALLENGES

19

Strategic Alignment

• The most challenging problems

and opportunities are

quarterbacked across

business functions.

• Cross-departmental buy-in,

transparency and

understanding becomes a

critical component for success.

• Executive buy-in, acceptance

for iteration and evolution, data

literacy, enthusiasm and

celebration of individual

successes, lead to culture

change.

Insight Burden

• Insight Burden is experienced

in consuming content and

understanding its message.

• An infographic, a dashboard,

and a self-service tool each

provide a different burden on

understanding on a user.

• Reducing analytic burden is the

key to cross-departmental

collaboration and information

sharing.

Analytic Overhead

• Analytic Overhead is

experienced producing

content, often on a monthly or

weekly cadence.

• A monthly PowerPoint

presentation or Excel

workbook that takes multiple

days to generate and multiple

system exports is an example

of an analytic overhead.

• This overhead results in

numerous inefficiencies and

opportunities.



THE 10,000 FOOT VIEW

20

Analytics BI

2


Insights

Data analysis

performed by users

Change, adjustment,

optimizations

Leadership

Change Management

Consumed in decision-

making and action

Business

Process

Data Consumption



ADVANCED ANALYTICS, PREDICTIVE, PLANNING

21

Business

ProcessInsights

Analytics BI

Leadership

Change Management

Advanced and

Predictive

Analytics Targets

Enrichment

Forecasts

Scoring

Prediction

2




VISUALIZATION

22

Business

ProcessInsights

Analytics BI

Leadership

Change Management

You

Insights

Business

Partners

Advanced and

Predictive

Analytics

2




DATA QUALITY AND OTHER ANTI-PATTERNS

23

Business

ProcessInsights

Analytics BI

Leadership

Change Management

Business

Partners

Insights

Governance

MDM

Advanced and

Predictive

Analytics

2




BENEFITS OF DATA ANALYTICS IN AUDIT

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THE PEOPLE CHALLENGES WITH ANALYTICS

Language and culture

Collaboration, time, meetings

The way it is

The art of the possible

Training, knowledge, know-how

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INTEGRATING ANALYTICS INTO THE AUDIT PROCESS

The entire audit process from scoping to reporting is affected by integrating analytics

26

Integrated Analytic Audit Steps

Visualize

results

Targeted

testing

Identify

potential

analytics

Obtain

data

Analyze

data

Identify

potential

issues

Traditional Audit Steps

Confirm

objectives and

approach

Confirm

detailed scope

Kick-off

audit

Sample

testingReporting



SUCCESSFUL DATA ANALYTICS

For success, factor in process changes, have the right resources, and obtain the right data

How will the audit

process be changed to

effectively incorporate

analytics?

Are people with the

right skill set available

or can they be trained?

What tool requires

minimal support?

Is an adequate tool

already available?

What is the most

efficient way to obtain

and prepare the

correct data?

PEOPLE PROCESS

TECHNOLOGY DATA

Building Blocks of Data Analysis

27

PROCESS MINING



PROCESS MINING

29

Analytics

Process Mining

Business

ProcessInsights

Analytics BI

Leadership

Change Management

Business

Partners

Insights

Governance

MDM

Advanced and

Predictive

Analytics

2




PROCESS MINING

Where did this come from anyway?

30



WHERE DO WE END?

31

𝟏. 𝟎𝟎 𝟑𝟔𝟓

𝟏. 𝟎𝟏 𝟑𝟔𝟓

= 1

= 37.783

𝟐 𝒀𝒆𝒂𝒓𝒔 = 1,427.59 𝟑 𝒀𝒆𝒂𝒓𝒔 = 53,939

© 2019 Protiviti Inc. An Equal Opportunity Employer M/F/Disability/Veterans. PRO-0619

Protiviti is not licensed or registered as a public accounting firm and does not issue opinions on financial

statements or offer attestation services. All registered trademarks are the property of their respective owners.

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