Why the “The future of Auditing & Risk Management” is no longer what it used to be!!!!

By CA Anand Prakash Jangid

Off late, professionals in the field of risk management and auditing have started experiencing an interesting phenomenon of a different future then what was perceived by
the thought leaders in this field to be 
the futureOne of the key challenge is the changing
business dynamics as well as the expectation from the profession. Gone are days
when Auditors were just” watchdog” and not a “blood-hound”.
But with increasing compliance and expectation worldwide have led to auditors
to start act as “blood-hounds”
One area particularly which became an offshoot of this was fraud risk to an organization. It is important in today’s world for auditors to be proactively involved in Fraud detection and prevention with the help of techniques of data analysis. The techniques of data analysis help in transformation of audit fundamentally and also improve our approach towards audit. Traditional Audit is a cyclical process which involved assessing and testing controls, identifying control objectives, performing tests in a manual manner also sampling population being considerably small to measure control effectiveness. Auditors being proactive help in carrying out number of activities that help in acquiring better quality of data which in turn results in better analysis and final output. Fraud Analytics is an analytical process that gives insights from operational, financial and many other internal as well as external electronic data. It could be Real time data or even historical data which is usually risk focused. To conclude, its results help us to identify key risk areas, errors, misuse, fraud, verify process effectiveness, improve business efficiency and also influence business decisions.