5 Use Cases to Help Audit Professionals Take Back Their Time
Is your audit department overworked? Are they still working in spreadsheets?
Step away from legacy tools and explore five common audit processes that you can modernize so your team can spend more time solving analytic problems rather than manually wrangling and reconciling data.
Use Case #1: Continuous Auditing
5-8 days saved per audit
Traditionally, audits have proven to be both time-consuming and labor-intensive, especially when done manually. Continuous auditing through automation, on the other hand, can improve the effectiveness and efficiency of audits.
Depending on the process being audited, manual audits take 2-6 months so weaknesses and errors can go undetected for long periods of time and become costly.
Human error can lead to inefficiencies and an increase in time/effort to conduct each audit.
With audit sampling, companies can’t be sure they have a truly representative sample of the population.
Automate audit processes to save time while gaining more assurance and completeness by checking 100% of transactions and detecting weaknesses in a real-time environment.
A managed healthcare company transitioned to continuous auditing, saving them millions of dollars in potential claims overpayments and saving their audit team 5-8 days per audit.
Key controls are important in helping companies detect errors or fraud on financial statements. Since the inception of the Sarbanes-Oxley Act (SOX), key control requirements have increased and become even more complex
All controls being classified as key rather than key or non-key leading to a growing number of key controls
Audit projects now require more details about controls, which can cause inefficiencies when done in spreadsheets
The public and shareholders expect solid controls and in-depth testing — putting even more pressure on audit teams
Streamline audit processes into one customizable, cost-efficient solution and avoid manual processes prone to data entry errors.
An airline company modernized its audit program to save nearly $1M/year and reduced its audit process from 5-7 days to 15 minutes.
Fraud exists in many organizations but can be difficult to identify. It’s easy for companies to miss fraud if they’re not checking every transaction or frustrating when a transaction is incorrectly flagged as fraudulent
Handling large volumes of data and transactions to identify fraud
Keeping up with fraudsters as they change their antics
Manual processes and human error can lead to longer times for analysts to respond to fraud and ensure that all fraud is captured
Check 100% of transactions to catch 100% of fraudulent ones. With insight into real-time transactional data, take immediate action and reduce losses from fraud.
A financial crime exchange can now work with large datasets at speed. They reduced their workflow from 7 hours to 7 seconds.
10,000 vendors assessed for risk in less than 60 seconds
Internal audit teams should conduct regular vendor risk assessments to see what potential risks may arise from vendors that could negatively impact business operations. This is a proactive way to detect issues, including fraud, across vendors.
Lots of vendor data can mean that specific, important data points drop off or are ignored
Materiality thresholds — the level that determines whether a discrepancy is big enough to matter — become high when lots of manual processes are involved
Some vendors don’t have purchase orders (POs), and non-PO vendors have more risk associated with them
Create a fast, repeatable process to identify high-risk vendors and where additional audit procedures should be performed.
An international cruise line automated its vendor risk scoring procedure to identify issues among 10,000 non-PO vendors and 275,000 invoices representing over $2B in spending.
Regulatory risk is the risk that regulations and laws will change and negatively affect a business. When regulatory returns or processes are manually run, risk levels can increase along with missed deadlines and fines.
Finding a framework to keep up with regulatory changes
Manual processes leading to an increase in risk and errors
Incurring fines from returns or reports with incorrect numbers and errors
Comply with regulatory reporting procedures and minimize fines with workflows that run in seconds.
A bank and financial services group saved thousands of hours annually and reduced risk by automating workflows.
Alteryx, the Analytics Automation company, is focused on enabling every person to transform data into insights. See how your audit department can use Analytics Automation to take back their time and maximize efficiency and performance.