ABSTRACT
Organizations are collecting, analyzing, and using more data. In general, data analytics has been an under-utilized technology in the internal audit profession. Internal auditors must learn to use data analytics to verify controls are working as intended, determine if risks are materializing and to what extent, and find out if objectives are being achieved. Determine where the data are located. The data may be stored in mainframes, client/servers or be kept by end users so data extraction must be considered as well. Data analytics programs and continuous auditing algorithms can be built to provide e-mailed notifications automatically to alert the appropriate individuals about red flags, which can turn large amounts of data into actionable information. Internal auditors should increase their use of data analytics to identify risks, control breakdowns, and fraud during internal audits. Successful data analytics require: risk assessment, data inventory, examination of data access, determination of data integrity, data analysis, and reporting of results.
