Big data is revolutionising internal auditing by offering new opportunities to enhance efficiency and effectiveness. The challenge lies in understanding and harnessing this vast amount of data. Technology can help auditors analyse large data sets, identify patterns and trends, and provide insights that can improve decision making. However, to fully leverage big data, auditors need to adapt and develop new skills. Traditional auditing methods may prove insufficient in the face of this digital transformation.
A key aspect of this shift involves adopting a predictive mindset. Rather than focusing on past performance, auditors should utilise big data to anticipate future risks and opportunities. This forward-looking approach can help organisations proactively manage risks and capitalise on emerging trends.
However, big data also presents potential risks. Data privacy and security concerns are paramount, and auditors must ensure that data is handled responsibly. Additionally, the sheer volume of data can be overwhelming, and determining what is relevant requires discernment.
Finally, internal auditors should not view big data as a threat, but rather as a tool to enhance their role. By embracing big data, auditors can transform their function from a compliance-focused role to a strategic partner that adds value to the organisation.
Go to source article: http://deloitte.wsj.com/riskandcompliance/2017/12/14/for-internal-audit-big-data-represents-a-big-opportunity/