How to Achieve Data-Driven Audits

BIG DATA is a buzz phrase thrown around in the audit industry a lot these days. What you hear is, “the more data, the better”. That is true! More client data allows auditors to improve the quality of their audits. Moreover, the auditor can then produce better analytics, identify risks, and provide deeper insights and recommendations back to the client. The question is how to do this efficiently and effectively?

For example, extracting general ledger, accounts receivable, and accounts payable data from various ERP systems is often a huge pain. Additionally, it is often very time consuming to format the data so that you can make sense of it. You may be looking at hundreds of thousands of transactions. Because of that, it is easy to get lost in all this data!

Solutions behind data driven audits

That is where CCH Audit Accelerator comes in. It does the heavy lifting for you. This cloud-based tool:

  • Extracts transactional data from the client’s ERP system(s)
  • Presents the data back to you in a standardized format

As a result, you can:

  • View numerous on-screen reports for any number of periods
  • Drill down to the detail of the double-sided entry that makes up each amount
  • Create custom reports with full historical data for trend analysis

Even more, you can download any of the reports to Excel — generating over 80% of your audit working papers! To be frank, though, the key is to leverage this BIG DATA even more. Do that by directly integrating the data with other applications, such as CCH® ProSystem fx Engagement and TeamMate® Analytics.

CCH ProSystem fx Engagement

CCH Audit Accelerator automatically generates a report already correctly formatted for CCH ProSystem fx Engagement. This report facilitates the transfer of accounts and ending balances into Engagement’s trial balance. In addition, you can store all of the reports generated in CCH Audit Accelerator within the Engagement binder as workpapers. Doing so supports the audit. In addition, new connectors with Sage 100 Contractor and Abila MIP are coming soon.

TeamMate Analytics

TeamMate Analytics works with data in Excel files. It offers over 150 tools specifically designed to meet the analytic needs of CPA firm auditors and accountants. Utilize it to select a sample size for your audit testing, for example.

Furthermore, any Excel report generated in CCH Audit Accelerator will work with TeamMate Analytics. Simply click the TeamMate Analytics button found on the Excel ribbon in Audit Accelerator. Using the data from CCH Audit Accelerator along with the analytic tools from TeamMate Analytics, search the data for transactions such as:

  • Round numbers
  • Zero balances
  • Numbers ending in 999
  • Journal entry count by account
  • Journal entries posted at unusual times such as weekends

Conclusion

As you can see, it all starts with getting your hands on the BIG DATA. After that, the possibilities are endless on what you can accomplish … including a more data-driven audit approach.

Are you ready to start leveraging that BIG DATA in your firm? First, then, start by visiting these webpages to learn more — CCH ProSystem fx Engagement, CCH Audit Accelerator, and TeamMate Analytics. Then, talk to a representative to discuss your firm’s specific needs and get started.

Yes, contact me. I want to better leverage BIG DATA.

AUTHOR

Joel Ortner

All stories by: Joel Ortner