BIG DATA ANALYTICS IN INTERNAL AUDIT

Year 2018, Volume: 7 Issue: 1, 260 - 262, 01.09.2018

İdil Kaya Destan Halit Akbulut , Koray Ozoner

https://doi.org/10.17261/Pressacademia.2018.893

Abstract

Purpose- This paper aims to analyze the role and effects of big data analytics on internal audit. To achieve this aim, we try to define the big data analytics and its impact on internal audit. As a course of nature of the internal audit, analytical review procedures are embedded in internal control models and fraud detection techniques. Since big data merge massive amounts of a diverse type of information with various kind of analytical tools, we also try to determine what big data analytics offer to the development of internal audit function.

Methodology- The research design is exploratory research based on a focus group to generate knowledge from different perspectives. We benefit group interaction and try to discover how internal auditors view big data and its effects on the internal audit. We also investigate the ways of implementation the big data analytics in the organization, such as hiring new analytically trained professionals or using the services of third-party solutions providers for big data.

Findings- We find similar results with the literature that big data analytics increase the effectiveness of internal audit. Using analytics in internal control, risk management and fraud detection have many benefits in identifying anomalies and exceptions and focusing more on correlation and causation.

Conclusion- Internal auditors are mostly aware of the importance of big data analytics, the different policies and methods of its implementation into the organization and its role in transforming internal audit function.

Keywords

Data analytics, internal audit, big data, exploratory research

References

• Alves, M. D. C. G., Matos, S. I. A. (2010). Adoption of enterprise resource planning system – some preliminary results. Proceedings of the European Conference on Information Management & Evaluation.
• Cangemi, M. P. (2016). Views on internal audit, internal controls, and internal audit’s use of technology EDPACS. vol. 53, no. 1.
• Protiviti (2017). 2017 Internal Audit Capabilities and Needs Survey. Available at: https://www.protiviti.com/sites/default/files/united_states/insights/2017-internal-audit-capabilities-and-needs-survey-protiviti.pdf
• Sun, Z., Sun, L., Strang, K., (2018). Big data analytics services for enhancing business intelligence. Journal of Computer Information Systems Vol. 58, no. 2.
• Tang, F., Norman, C. S., Vendrzyk, V. P. (2017). Exploring perceptions of data analytics in the internal audit function. Behaviour & Information Technology, vol. 36, no. 11, p. 1125-1136.