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Do you have a formal DA Program?
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Does your DA program include areas beyond audit?
Functional Areas
• Finance/Accounting
• HR
• IT
• Operations
• Supply Chain
• Inventory
• Business Development
• Regulatory
• Legal
• Marketing
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What DA tools are you leveraging?
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What are your top value-add test scripts?
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How would you rate your DA capabilities?
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DA Forum Objectives/Interests
• Sharing best practices/lessons learned
• Learning successful test scripts of others
• Understanding more effective ways to integrate DA into
audits
• Learning how to expand/grow a DA program
• Understanding different tools available
• Discussing common challenges
(access to data, selling the
value of DA, resource and
budget constraints, training
needs, etc.)
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Companies in Attendance/Surveyed
• American Transmission • MGIC
Company • MillerCoors
• Associated Bank • Robert W. Baird
• Aurora Health Care • Rockwell Automation
• Brookdale Senior • Sealed Air Corporation
Living
• Sensient Technologies
• FIS
• Marcus Corporation
• Fiserv
• US Bank
• GE Healthcare
• WEC Energy Group
• Harley Davidson
• West Bend Mutual
• Johnson Controls
Insurance
• Johnson Financial Group
• Kohl’s
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DATA ANALYTICS - CONTINUOUS
MONITORING / CONTINUOUS AUDITING
ASSOCIATED BANK CORPORATE AUDIT SERVICES
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INTRODUCTION
Benjamin Arthur
CPA, CIA, CISA
Operations and Technology Audit Director
Associated Bank - Corporate Audit Services
Benjamin.arthur@associatedbank.com
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EXPERIENCE
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PITFALLS IN BUILDING A PROGRAM
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PITFALLS - 1
1. Define analytic objectives
a. Success Criteria
i. A prioritized list of analytic objectives.
ii. Greater understanding of data analytic applications within the audit function.
b. Red Flag
i. Overemphasis on technology rather than capabilities that analytics can help improve.
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PITFALLS - 1
1. Define analytic objectives
a. Success Criteria
i. A prioritized list of analytic objectives.
ii. Greater understanding of data analytic applications within the audit function.
b. Red Flag
i. Overemphasis on technology rather than capabilities that analytics can help improve.
We got the technology first and did not prioritize objectives until later.
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PITFALLS - 2
2. Assess talent needed to meet your objectives.
a. Success Criteria
i. A list of necessary skills to fulfill objectives.
ii. A good understanding of existing talent in the department.
iii. Agreement on the best talent model.
b. Red Flag
i. Limited staff do not meet skill needs in addition to limited budget.
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PITFALLS - 2
2. Assess talent needed to meet your objectives
a. Success Criteria
i. A list of necessary skills to fulfill objectives.
ii. A good understanding of existing talent in the department.
iii. Agreement on the best talent model.
b. Red Flag
i. Limited staff do not meet skill needs in addition to limited budget.
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PITFALLS - 3
3. Identify current technologies and evaluate them against analytic objectives.
a. Success Criteria
i. Assessed value of technology options.
ii. Technology options to pursue.
b. Red Flag
i. Technology options do not reflect objectives.
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PITFALLS - 3
3. Identify current technologies and evaluate them against analytic objectives.
a. Success Criteria
i. Assessed value of technology options.
ii. Technology options to pursue.
b. Red Flag
i. Technology options do not reflect objectives.
Buying software was done before priorities established and without input from users.
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PITFALLS - 4
4. Moving Beyond the Maturity of Your Organization
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PITFALLS - 4
4. Moving Beyond the Maturity of Your Organization
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SUCCESSES IN BUILDING A PROGRAM
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SUCCESS - 1
1. Define analytic objectives
a. Success Criteria
i. A prioritized list of analytic objectives.
ii. Greater understanding of data analytic applications within the audit function.
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SUCCESS - 1
1. Define analytic objectives
a. Success Criteria
i. A prioritized list of analytic objectives.
ii. Greater understanding of data analytic applications within the audit function.
b. Data Analytics Library
i. Input from all areas of Audit
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SUCCESS - 2
2. Assess talent needed to meet your objectives
a. Success Criteria
i. A list of necessary skills to fulfill objectives.
ii. A good understanding of existing talent in the department.
iii. Agreement on the best talent model.
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SUCCESS - 2
2. Assess talent needed to meet your objectives
a. Success Criteria
i. A list of necessary skills to fulfill objectives.
ii. A good understanding of existing talent in the department.
iii. Agreement on the best talent model.
b. Dedicated Data Analytics Position
i. Right Skill Set.
ii. Right Experience and Organizational Level.
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SUCCESS - 3
3. Identify current technologies and evaluate them against analytic objectives.
a. Success Criteria
i. Assessed value of technology options.
ii. Technology options to pursue.
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SUCCESS - 3
3. Identify current technologies and evaluate them against analytic objectives.
a. Success Criteria
i. Assessed value of technology options.
ii. Technology options to pursue.
b. Perform tasks in appropriate tool
i. Excel
ii. Data Warehouse
iii. Data Visualization
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SUCCESS - 4
4. Moving Beyond the Maturity of Your Organization
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SUCCESS - 4
4. Moving Beyond the Maturity of Your Organization
a. Build data validation into the process.
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CURRENT STATE
• Projects
– CAS has a library of potential continuous monitoring / continuous auditing projects. This can be added to any time.
• Tool: IDEA
– Installed both test and production environment.
• Data
– Many ad hoc data sources are available.
– We have monthly data feeds from HRIS and Active Directory (Network Access).
– We are working with IT on additional data feeds.
• Process
– Started with a pilot project to define a baseline process.
– Continue to improve the process.
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PROJECT PROCESS
1. Define the Project Goal or Question
5. Analyze Output
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THANK YOU
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DATA ANALYTICS PROGRAM
AGENDA
• Introduction
• Current State
• Examples
• Future State
• Key Takeaways
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INTRODUCTION
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CURRENT STRUCTURE AND TECHNOLOGY
• Structure: • Technology:
– Scheduled scripts – ACL
– Ad hoc scripts – ACL DirectLink
– Specific audits – Task Manager
– Microsoft Excel
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EXAMPLES
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WHERE TO NEXT?
• Reevaluate process
– New company
– New systems
– New processes
• Researching data visualization tools
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KEY TAKEAWAYS
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THANK YOU!
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Data Analytics and Data Viz – An ATC Perspective
American Transmission Company
Paul Thomas, Devonne Wilhoit
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A Little Data Analytics Humor
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ATC – Key Facts
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Data Analytics – Word Cloud
“The first and simplest emotion which we discover in the human mind, is curiosity.” ~Edmund Burke
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What is Data Analytics?
• Data Analytics:
– “is a process of inspecting, cleansing, transforming, and modeling data with the goal of
discovering useful information, suggesting conclusions, and supporting decision-making”. -
Wikipedia
– "leverage data in a particular functional process (or application) to enable context-specific insight
that is actionable.“ – Gartner
– “is using our current data sets to extract useful information to support advanced decision
making” - ATC
• Data Visualizations (i.e. Data Viz):
– Visual context of data, Dashboards
– Often single page, real-time user interface, graphical presentation of your data
“Without data you’re just another person with an opinion.” ~W. Edwards Deming
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Data Analytic Capabilities
“The greatest enemy of knowledge is not ignorance, it is the illusion of knowledge.” ~Stephen Hawking
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ATC High-Level Timeline
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Analytics at ATC
2000 - 2007 2008 - 2014 2014 - 2016 2017 - 2018 2018 -
Tools
DW
Mart
ODS Mart ODS ODS
Mart
Data Sources
Data Integrity Data Integrity Data Integrity Data Integrity Data Integrity
Measures
Self Service Self Service * Self Service Self Service Self Service
Analytic Capability Analytic Capability Analytic Capability Analytic Capability Analytic Capability
Data Governance Data Governance Data Governance Data Governance Data Governance
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Data Analytics Pillars and Foundation
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Data Analytics Architecture
Tools
Action
Business Action
Wisdom
Rules
Partnership and
Information &
Stewardship Knowledge
Information
Data
Data
Technology
“The greatest value of a picture is when it forces to notice what we never expected to see.” ~John Tukey
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Current state – Reliability Data
Data
Manual
Information
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Current state – Reliability Data
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Design Differences
Key:
Organize the
data for
analytics
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THE OUTAGE DATA IN THE ANALYTICS REPOSITORY
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Current State - Approach
Know Why An
Wisdom
e
aly
l
op
it
to
Pe
Turn Information into Knowledge
sis
Repository **New
Know How
f
Information &
Be
Knowledge
Translation
Turn Data Into Information ODS
Know What
Data Data
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Reliability Performance Metrics – Pilot 1 – Selection Criteria
Future State
TOA ODS Repository BI Tool
• Extensibility, transformation automation
would reduce not only the time for one
report, it could impact many similar
reports. Automated
Processes
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Benefits
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Lessons Learned
• Manual processes may not be fully documented
• Manual process are complicated and difficult to document
• There are more data sources than you initially thought
• The data is not as clean as you thought
• Historical data will have a different format and will be hard to merge
• You may find data that did not make it back to the ‘system of record’,
data governance needs to be addressed.
• Not everyone agrees on what the ‘systems of record’ are
• Resources may not be available; you need SMEs
• There are no short-cuts
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Data Analytics
“If we have data, let’s look at data. If all we have are opinions,
let’s go with mine.” ~Jim Barkesdale, CEO of Netscape
Thank You!
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Data Analytics Forum Questions
• 1. Introduction - Setting the stage
– How do you define audit analytics?
– Why are data analytics important?
• 2. People
– How do you determine who the best resources are in your audit group to move analytics strategy and execution forward?
– Developing the right skillsets for data driven audits can be a challenge because the skills tend to fall out of the "audit
wheelhouse". How do you provide staff with the capabilities to build the expertise they need or how do you partner with
other teams to leverage their expertise?
• 3. Process
– How do you incorporate analytics throughout the full audit life cycle?
– (Risk Assessment -> Audit Planning -> Fieldwork/Execution -> Reporting)
• 4. Technology
– What are some of the shifts you are seeing from a technology perspective in audit?
– How do you pick the right tools for the job?
• 5. Practical Application
– What are some examples of "non-standard" audits or areas of the organization where you have deployed analytics in your
audits?
– Have you succeeded in pushing the analytics you produced for the audit into the organization to drive
efficiency/effectiveness? How have you achieved that or what has been challenging for you?
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