AUDIT ANALYTICS AUDIT

AUDIT ANALYTICS AND CONTINUOUS AUDIT:LOOKING TOWARD THE FUTURE
AIC runs on frequent basis text protocols examining social
networks and news pieces for items relevant to CLG, its
competitors, directors, managers, and employees.
AIC has by and large changed to a risk-based audit by exception
methodology whereby risk monitoring encompasses external and
internal factors and the assurance effort coordinates with
management.
AIC has adopted a commercial system of automated working
papers that track auditor keystrokes, phone communications, and
several embedded modules in the client system on a constant basis.
AIC and CLG cooperate on fine tuning a system of predictive
analytics that creates forecasts for key accounts and processes of
CLG. These are used for process monitoring, preventive
monitoring, and for some of CLG’s communications with its
stakeholders.
AIC’s staff has a wide variety of skills, in particular IT and
analytics, and has a very intensive lifelong training program. AIC
also monitors its staff through external and internal information
sources.
Larger inventory items have RFID chips and their movement is
recorded through the supply chain with the participation of
external partners.
AIC has a wide menu of assurance and advisory services it offers
and it contracts not only with CLG but also many of its partners
for services such as covenant monitoring, asset existence, process
monitoring, financial statement assurance, and so on. The
compensation for these services is mainly parameterized on the
characteristics of CLG’s business, not labor hours. AIC will also
perform compensated work for the government relative to tax,
ecology, and labor practices. The coordinated audit has many
partners.
New protocols, technologies, and standards must cooperate in order to
achieve a progressive layering and coordination of management, control,
risk, and assurance functions. The following section discusses a symbolic
view of what the audit ecosystem would entail.
5.6 The Audit Ecosystem
Businesses are now often described as ecosystems. A logistic supply
chain is managed by a multitude of information flows, actors, and IT
infrastructures within an evolving timeframe. The Economist described
practical ecosystems:
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