Auditing basically refers to collection, analysis and examination of and verification of all the financial records of any company. This means that all those professionals who work under the team which is supposed to financial audit the company, essentially have to deal with a lot of data and information.
This is exactly where the concept of data analytics comes in. Just like any other activity, this activity is also supposed to work with a great amount of data that is generated by the whole company through invoices, receipts, ledgers and so on. Data Analytics has one main function, to collect and process the data in order to derive insights from the same.
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So in an economy which is full of uncertainties and high risks today, there is a great amount of pressure on audit teams worldwide to be on their toes at all times. There are major expectations from these, including the ability to provide companies with exact results with assurance of quality and continuity. In such a challenging scenario, one can find that the concepts and techniques of data analytics come to play a major role.
Mainly because of what their functions are, future of a Data Analyst professional shines very bright. Big Data has been gaining a lot of importance over time, as it data analytics and the integration of the same in the process of financial audits, would not only give accurate results but also ensure that the companies can maintain their remarkable acumen in business matters.
Here’s what few of the Big Cheeses of the business world have to say in favour of the inclusion of data analytics in the process of financial audit:
“With the exponential growth in data and availability of inexpensive new technologies to generate business insight and value, this is an opportune time for the internal audit profession to provide greater value to their organizations,” says Neil White, Deloitte Risk and Financial Advisory principal and Global Internal Audit Analytics leader at Deloitte & Touche LLP.
“It’s a massive leap to go from traditional audit approaches to one that fully integrates big data and analytics in a seamless manner,” says Roshan Ramulkan from EY.
Both of these professionals are talking about the massive possibilities that are in store especially when it comes to the integration of data analytics in the process of financial audit. Given below are three ways it would be beneficial for various companies:
- Data Analytics will ensure that every financial audit produces more reliable reports and insights, thus helping in the governance of the company.
- Analytics will also help the financial teams of the company understand the impact of changes in accounting can affect the financial statements and help them manage things efficiently.
- Analytics will help the company find out the best financial processes and focus on the best process controls in order to provide most efficient of insights.
Thus, such great additions to the financial audit will pave a way for a great career in Data Analytics in India for many.