Data analytics can play a pivotal role in guiding audits and help uncover insights to tell the story of what’s really happening in a specific area of the business. Data analytics are useful in facilitating more digestible, impactful reports. In particular, audit analytics software can help your audit firm create audit reports with data visualisations — such as charts and graphs — that clearly communicate audit findings and tell a story. As the saying goes, pictures are worth a thousand words, so know your audience and convey your message in a way that is meaningful to them.
While data analytics are a powerful tool in and of itself, it should be used in conjunction with other auditing techniques and tools for a well-rounded audit approach. One of these techniques is root cause analysis – a five-step approach that can help external auditors unravel the narrative behind the numbers in the audit process and increase the value of their recommendations.
In this comprehensive guide, we take external auditors step by step through the process to help:
- Define the problem
- Collect data
- Identify possible causal factors
- Identify the root causes
- Recommend and implement solutions
For external auditors to be successful, they need several tools in their toolbox. Following our guided steps for root cause analysis can help your audit firm stay ahead of emerging issues and deliver new insights and meaningful reports to your clients. It also offers another way for audit firms to provide value by enhancing your client’s continuous improvement efforts within their organisation.
