Leveraging data to drive agility in internal audit

In today’s environment, internal audit teams must aim to make their work more valuable, more efficient and more impactful. Two key interrelated tools internal audit functions can use to achieve these goals are data analytics and agile auditing. Maximizing the use of data can be indispensable for an organization, allowing internal audit to be faster, more flexible and more strategic in its work.

Effective use of data can enable more strategic and timely risk assessment practices, incorporating emerging internal and external risks around which an organization may need to adjust its audit plans. Data analytics further support internal audit to focus and refocus work as risk effects shift, so that the organization’s limited time and resources can be directed toward the biggest, most strategic risks. Additionally, data analysis and visualization can be powerful ways to showcase outcomes with the organization’s board, audit committee and leadership, allowing the audience to more quickly grasp complex issues and address challenges identified.

Recently, Baker Tilly hosted a virtual roundtable of internal audit stakeholders to discuss the intersection of data analytics and agile auditing. Participating organizations represented a multitude of industries and were at various maturity levels in data analytics usage.

During the roundtable, industry breakout groups focused on the impact of data analytics across the audit life cycle, holding in-depth collaborative discussions in the areas of risk assessment and planning, fieldwork and reporting. Flash polls conducted throughout the event revealed a challenge with data quality/access as the greatest obstacle in using data analytics in their internal audit functions, while more dynamic recommendations were cited as the biggest positive benefit.

The groups discussed their goals in leveraging data and agile concepts, what they are doing to develop a data-driven mindset to enhance agility, and success, challenges and lessons learned. The session’s key takeaways are summarized below.