ABSTRACT
Internal auditing is a field where data analytic techniques have become a key tool to provide assurance on risk, control, and governance processes. For those who may not work with the audit function frequently, it is useful to know that internal audit has been defined by the Institute of Internal Auditors as “an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations. Data analytics in auditing differs in purpose and expected outcomes, from the analysis techniques deployed in other business areas. The methods used in many cases are not unique to audit, but the direction of use and application is. Risk assessment is the foundational activity for an internal audit function where data are used to gain a comprehensive understanding of a firm’s risk profile for the development of appropriate audit coverage. Risk assessment is a key tool within the audit function that is used to set plan of audit activities for subsequent year.
