The use of big data techniques in auditing mainly consists of ensuring the organizational quality is maintained. Also, it helps in conducting frequent internal and external audits. Audits help to know the effectiveness of process and systems.
In most of the big companies, auditing plays a major role be this quality or financial. To understand the definition of Auditing, Guidelines for auditing management systems states that it is a systematic, documented and independent process. It helps to obtain audit evidence such as records information, statements. Ironically, the auditing industry is behind when we talk about big data and analytics.
Big Data: Growing Auditing Technique
When we talk about “Big data”, it is basically a term for a large amount of data that is exponentially growing. It also helps in enhancing productivity and focuses on business profits and risk management. Further, as per research, auditing is lagging behind in using big data techniques. Hence, for greater opportunities, big data techniques in auditing play a vital role. Big data, therefore, is nothing but the structured or unstructured data sets define with four Vs: velocity, volume variety, and veracity.
Variety is nothing but the increase of financial data in different formate, Whereas Velocity is the moving of data swiftly in an organization. The change of data over a period of time refers to Veracity. And finally, the volume consists of Big Data volume one gets in the business. New computerized big data techniques in auditing help to make sense in modern firms.
Many investors do not use big data in the auditing process. So, to benefit auditors, real-time data analysis can be applied. In order to expand their projects and focus on larger populations, big data techniques help.
Big data uses automation and artificial intelligence. It helps to process the data in larger volumes and higher velocity. Further, it also helps to uncover the necessary information for auditors. It makes financial auditors simplify the reporting process and detects fraud. So, to be specific, big data techniques in auditing help to rectify various risks in business and give more relevant audits.
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