Business Intelligence in Audit

Since 2002, regulations have changed the landscape of internal audit as well as how many internal audit departments are viewed by senior management and the board, making it difficult for internal audit, especially small and medium departments, to maintain a role in the risk management process. Many companies are beginning to realize the benefit of using business intelligence in the risk management process. By finding ways to get involved in those efforts, internal audit can again provide value and regain a seat at the risk management table. DOI: 10.4018/jbir.2012070104 International Journal of Business Intelligence Research, 3(3), 42-53, July-September 2012 43 Copyright © 2012, IGI Global. Copying or distributing in print or electronic forms without written permission of IGI Global is prohibited. • “1210.A3: Internal auditors must have sufficient knowledge of key information technology risks and controls available and technology-based audit techniques to perform their assigned work. However, not all internal auditors are expected to have the expertise of an internal auditor whose primary responsibility is information technology auditing” (The Institute of Internal Auditors, 2011). • “1220.A2: In exercising due professional care internal auditors must consider the use of technology-based audit and other data analysis techniques” (The Institute of Internal Auditors, 2011). • Technology-based audit techniques are defined as “any automated audit tool, such as generalized audit software, test data generators, computerized audit programs, specialized audit utilities, and computerassisted audit techniques (CAATs)” (The Institute of Internal Auditors, 2011). Typically in non-information technology audits, technology-based audit and data analysis techniques are applied during the enterprisewide risk assessment, project or process-specific risk assessments and CAATs for automated tests of transactions. The procedures can range from limited analytical review up to automated scripts that identify processing exceptions in real-time. According to The IIA 2010 Common Body of Knowledge (CBOK) report titled “Core Competencies for Today’s Internal Auditor,” the worldwide use of analytical review is about 65% and the adoption rate for CAATs is less than 50% (Bailey, 2010). The tools used for technology-based audit and data analysis techniques vary widely and include software packages such as Microsoft Excel, Access, and Structure Query Language (SQL) and generalized audit software such as Audit Command Language (ACL), IDEA, and Oversight. The technology usage by type chart (Figure 2) shows relative usage percentages for the Microsoft suite and generalized audit software. The chart clearly shows the Microsoft suite is by far the most utilized software by internal audit. Internal auditors not only use Microsoft products for analysis, but also for documentation. As such, rates for every category except data analysis may not necessarily reflect cases where the tool was used for automation or analytics. In the context of all other tools and techniques auditors use in the course of their jobs, the audit tools and techniques currently used by internal auditors and expected to be used in Figure 1. Business process relationships 10 more pages are available in the full version of this document, which may be purchased using the "Add to Cart" button on the product's webpage: www.igi-global.com/article/business-intelligenceaudit/69968?camid=4v1 This title is available in InfoSci-Journals, InfoSci-Journal Disciplines Business, Administration, and Management. Recommend this product to your librarian: www.igi-global.com/e-resources/libraryrecommendation/?id=2