Reimagine Internal Audit using Intelligent Automation
Reimagine Internal Audit using Intelligent Automation
Insight

Reimagine Internal Audit using Intelligent Automation

Intelligent automation is dramatically changing the way work is done across all functions—and can do the same for internal audit. KPMG’s automation expertise and versatile tools can help you reimagine your internal audit or SOX function

 

Intelligent automation is dramatically changing the way work is done across all functions—and can do the same for internal audit.

Automating internal audit and SOX activities can lower costs, increase assurance, enhance quality and create capacity. 

It also enables internal auditors—like this one—be more effective and strategic.

Automation is well-suited for high-volume transaction processes. 

It allows for larger audit sample sizes and the ability to test full populations within minutes—and with an increased testing frequency—to provide greater assurance with a higher degree of consistency and quality.

Internal audit and SOX departments are saving thousands of hours by automating repetitive, time-consuming activities

Automation creates capacity so audit teams have more time to work together analyzing complex issues, and their root causes.

Challenges in automation arise when there are variables in procedures and testing attributes.  Selecting the right case is paramount to making a positive impact.

We created an approach that eams use to standardize processes and quickly identify and assess automation opportunities. 

Based on the assessment, analysts determine the requirements and they either build-or repurpose- a solution from our KPMG- developed intelligent platform for automation

We leverage a suite of technologies and use the ones that are best suited for the procedure to be automated. 

One example is an automated general ledger reconciliation review.

The bot is designed to validate that the account reconciliation is approved, validate that the balance ties to the general ledger, identify unexplained and reconciling items and determine that no reconciling items are older than 90 days.

The bot interprets input data from the reconciliation engine, reading the xls formatted reconciliation report.  The bot is capable of interpreting multiple reconciliation reports simultaneously 

The bot ties general ledger data within the XLS input file. The red text describes potential exceptions and contains notes for the human auditor.

The bot then documents and uploads the PDF work paper as the output.

This general ledger bot can save as much as 50 to 75 percent of the time to complete the test manually and produce reliable workpapers—while also testing larger samples sizes.

And humans only have to follow up on the findings from the bots work.

Leveraging automation can save hundreds, if not thousands of hours.

The result can be audit and SOX departments that are more valuable to their companies and better engaged with business owners. These departments also provide increased assurance and create greater job satisfaction among team members.  

Supplementing internal audit and SOX with process automation is making a real impact. Adding machine learning and natural language processing will further enhance the capabilities and make us even more efficient and effective.

KPMG’s automation expertise and versatile tools can help you reimagine your internal audit or SOX function.