THE DOWNSIDE OF ANALYTICS: Data analysis technology could negatively impact internal audit independence.

Author:Mccollum, T.
Position:Practices/Update - Brief article
 
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Despite its benefits, data analytics can impact the quality and independence of internal audit's work, an Institute of Chartered Accountants in England and Wales (ICAEW) report warns. Risks include inaccurate or misleading results, misuse of data, independence conflicts, and data privacy and security, according to Internal Audit in the Age of Data Analytics.

"Internal auditors should focus on effective analysis of better data and strengthen their internal audit governance framework to cover emerging data analytics-related risks," the report advises.

That framework should include strong testing and quality assurance procedures to address issues with poor data quality, incorrect coding, and poor presentations that can lead audit...

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