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11/18/2018Data AnalyticsWhat is it and the Tools to UseTALLAHASSEE CHAPTERObjectives Define data analytics Identify challenges associated with dataanalytics Discuss the Steps to Data Analytics Discuss the Data Analytic Framework Identify different tools (applications) toassist with analyzing dataTALLAHASSEE CHAPTERWhat is Data Analytics The process of gathering and analyzingdata and then using the results to makebetter decisions The science and art of discovering andanalyzing patterns, identifyinganomalies, and extracting other usefulinformation (AICPA definition)TALLAHASSEE CHAPTER1
11/18/2018Components Analysis of operational, financial, andother data that qualifies and highlightsrisk and/or opportunity Data-mining information across multiplesources to provide actionable results Repeatable and automated processesthat search for patterns and identifyanomaliesTALLAHASSEE CHAPTERWhat is Data? Information? Merriam-Webster– Factual information (such as measurements orstatistics) used as a basis for reasoning,discussion, or calculation– Information in digital form that can be transmittedor processed– Information output by a sensing device or organthat includes both useful and irrelevant orredundant information and must be processed tobe meaningfulTALLAHASSEE CHAPTERFour V’s of Data Volume – amount of data– don’t drown in the data Velocity – speed at which data is produced– Don’t let data pass you by Variety – data is captured, stored, andidentified from various sources– Structured vs. unstructured Veracity – quality or accuracy of data– “garbage in, garbage out”TALLAHASSEE CHAPTER2
11/18/2018Evolution of Data Use Expansion of data (information) anddevelopment of software tools had asubstantial impact on how internal auditworks– Sampling. We can statistically sampleitems which creates a more meaningfulanalysis because it is now evidence-based.– More substantive analytical procedures– Can analyze unstructured dataTALLAHASSEE CHAPTERChallenges for IncorporatingAnalytics Difficulty in obtaining,accessing, and/orcompiling data Time required todevelop and executeanalytic procedures Insufficient resourcesor the need to trainpersonnel Lack of understandingabout data analytics Lack of managementbuy-in Inability to interpretresultsTALLAHASSEE CHAPTERFive Steps to Data Analytics1.2.3.4.Define the QuestionObtain the DataClean and Normalize the DataAnalyze the Data and Understand theResults5. Communicate the ResultsTALLAHASSEE CHAPTER3
11/18/2018Types of Data Analytics Descriptive Analytics– Focus on data to determine what happened Diagnostic Analytics– Focus on data to determine or why it happened Predictive Analytics– Focus on data to determine what might happen Prescriptive Analytics– Focus on data to highlight actions that couldinfluence outcomesTALLAHASSEE CHAPTERData Analytics Framework1. Develop a Vision2. Evaluate Current Capabilities3. Enhance People, Process, andTechnology4. Implement, Monitor, and EvolveTALLAHASSEE CHAPTER1. Develop a Vision How will data analytics support internalaudit?––––ComplianceFraud detection and investigationOperational performanceInternal controls assessment Must consider broader organizational goals,balance short-term investments with longterm vision, and identify ways to gain theassistance of operational management andprocess owners.TALLAHASSEE CHAPTER4
11/18/20182. Evaluate CurrentCapabilities Three components of a successful plan:– People, process, and technology Assess current capabilities in each areausing Maturity Model Framework– Serves as a basis for comparisons withpeers, a resource “needs” plan, and adevelopment plan for personnel skillsetsTALLAHASSEE CHAPTER3. Enhance People, Process,and Technology Strategic investments should be madeto:– Enhance the skills and experience ofpersonnel– Get the right data in the right form toperform analytics– Discover the software combination bestsuited for the visionTALLAHASSEE CHAPTER4. Implement, Monitor, Evolve Get started, periodically measure yourprogress, and be prepared to evolveyour data analytics program to matchyour stated vision. Change management initiativeTALLAHASSEE CHAPTER5
11/18/2018Conclusion There is no standard way to implementa data analytics program in yourdepartment It’s important to get managementsupport If you choose to implement, follow theframework by first creating your vision.TALLAHASSEE CHAPTERSoftware Tools ACL EMC– http://www.acl.com– http://www.emc.com Alteryx SAS/SAS Visual Analytics– http://www.alteryx.com– http://www.sas.com Arbutus Analyzer Tableau– https://www.arbutussoftw– http://www.tableau.comare.com/ CaseWare IDEA– http://audimation.comTALLAHASSEE CHAPTERReference Stippich, W. W., & Preber, B. J.(2016). Data analytics: Elevatinginternal audits value. AltamonteSprings, FL: The Institute of InternalAuditors Research Foundation.TALLAHASSEE CHAPTER6
11/18/2018Questions?Contact information:Lillian SEE CHAPTER7
11/18/2018 1 TALLAHASSEE CHAPTER Data Analytics What is it and the Tools to Use TALLAHASSEE CHAPTER Objectives Define
