As the saying goes, a picture is worth a thousand words. That saying is talking about visualization.
Because analyzing data is the crux of an external audit, it is critical that auditors know how to work with data. Doing so ensures they will better understand their client and plan a quality audit. For this reason, we are providing a 5-blog series to help you understand the value a solution like TeamMate Analytics brings to your audit workflow. This first blog of the series focuses on the value of visualization.
Take a Look
As an illustration, doctors use a wide variety of imaging tools to look inside our bodies when diagnosing health issues. What if accountants could do the same and look inside their client’s data?
TeamMate Analytics visualization tool provides a means for an accountant to do exactly that! Leveraging visualization, the auditor can easily step through a client’s detailed information and create a graphical representation of the data. The end-result of seeing client data is:
- Help with assessing risk
- Ability to identify trends and highlight unusual items
- An increase in the effectiveness of client communications
Here is a visualization example: A client provides the following summary of their results for the year:
|Current Year||Prior Year||Percent Change|
|Cost of Sales||6,102,763||5,947,068||2.15%|
Is there anything unusual in the results? At first glance when looking at the aggregated data you may conclude there is nothing unusual. Sales and Cost of Sales both had slight increases between the years, and the increase in Cost of Sales was proportional to the increase in sales.
When you use the visualization feature in TeamMate Analytics, though, look at how much more you can see in this graph of the sales.
The visualization from TeamMate Analytics highlights an unexpected increase in sales in the last month of the current year. That may indicate problems with the occurrence or cutoff of sales transactions, and may require additional follow up.
In conclusion, looking inside client data through visualizations gives you a high-level understanding of your client. In fact, you can spot anomalies that you may not have otherwise noticed. To learn more about how TeamMate Analytics can help your practice, watch this video.
Also, be sure to check our Tax & Accounting Blog next week for the second post in this 5-blog data analytics series.
TeamMate Analytics is part of Wolters Kluwer’s Integrated Audit Approach. This approach seamlessly unites CCH Audit Accelerator, CCH ProSystem fx Engagement, TeamMate Analytics, CCH ProSystem fx Knowledge Coach, and CCH Accounting Research Manager. Additionally, it also leverages our School of Audit. This combination of solutions helps firms maximize realizations and increase audit quality to ensure peer review readiness. If you have not checked out these solutions and this approach, it is worth your time to do so. Consider attending a complimentary demo at a time that fits your schedule.
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