Leaning on technology to transform internal audit

Yet, while the use of data analytics offers clear advantages for financial controllers, the ability to lean on technology also requires business models to transform. It's essential to understand how digitalisation will impact the business and develop the agility to adapt processes to deal with the numerical twin that will replace each manual task. 

Prepare the business case 

When looking to adopt data analytical tools, preparing the business case is the first step. Carefully consider what tasks or problems you want such a tool to solve and what you expect the outcome to be. Consider your current level of technological maturity and what structures, processes and expertise you need to maximise your investment. Begin with a pilot project to test systems and ensure the tool is fit for purpose before progressively rolling it out. Data security is a further vital consideration. Questions such as who has access to data and where it is stored must be determined early on in the process so sensitive customer and business data are not compromised. 

Don't overlook change management

Whether building up in-house technological expertise or partnering with a data analytical provider, ensuring that changes introduced are managed across the wider business is essential. While user training is high on the agenda, companies often overlook how new technology impacts other business functions. To manage change effectively, it's important to explain why technology is being introduced and how it benefits the company, from board level down to employees and broader stakeholders. Transformation requires not only equipping organisations with new technologies, but also reimagining the process and the way of working to fully embrace and incorporate the new tools in the day-to-day tasks.

Dealing with data saturation

Data reliability is critical to inform compliance. However, using a data analytical tool that results in endless information and exception reports is not an effective use of technology. It requires a clear understanding of data held and the application of a logical methodology to define what data is considered good and when it needs human evaluation.

Maximise the benefits

As well as removing cumbersome, repetitive manual processes, data analytics's ability to conduct continuous monitoring is a further benefit. This allows financial controllers to analyse vast amounts of data in real time and spot anomalies that can be dealt with earlier in the audit cycle. Importantly, it frees up much-needed capacity to exercise professional judgment and apply quality control. Wider benefits of continuous monitoring include the transparency to inform strategic management decisions more efficiently across the business related to risk management and key performance indicators (KPIs).

Finally, while technology evolves, so does business. Monitoring whether your data analytical tool continues to offer the functionality your growing business needs is essential, as is having the right level of support so that the adoption process runs smoothly from the outset.