DATA ANALYTICS TO MIT ITIGATE RIS ISKS IN IN THE AUDIT OF - PowerPoint PPT Presentation

PLAN DATA ANALYTICS TO MIT ITIGATE RIS ISKS IN IN THE AUDIT OF EXECUTION PROCUREMENT ANALYSE BY: DR. ALIFAH AIDA LOPE ABDUL RAHMAN AUDIT CONLCUSION NATIONAL AUDIT DEPARTMENT OF MALAYSIA REPORT 1

AGENDA ▰ Introduction ▰ Audit analysis ▰ Public procurement in ▰ Auditor General’s Dashboard Malaysia ▰ Challenges ▰ Public procurement process ▰ Conclusions ▰ Audit Process ▰ Optimize technology for audit work 2

IN INTRODUCTION National Audit Department is:  An independent government agency in Malaysia  Responsible to carry out audit on the accounts of Federal Governments, State Government and Federal Statutory Bodies as well as the activities of the Ministries/Departments/Agencies and Companies under the Federal and State Governments. 3

PUBLIC PROCUREMENT IN IN MALAYSIA ▰ Types of procurement a) Tenders b) Direct negotiation c) Quotation d) Direct purchase e) Balloting 4

PUBLIC IC PROCUREMENT PROCESS Accountability Compliance • PEOPLE • TECHNOLOGY • PROCESSES/ • POLICIES Operational Applications Decision making Tools 5

AUDIT O OBJECTIVES Compliance • Adhered to rules and regulations Value for money • Economy, efficiency, effectiveness 6

RIS ISK MANAGEMENT MODEL Identify Analyze Control Monitor 7

RIS ISKS IN IN PUBLIC PROCUREMENT BUSINESS RISKS FINANCIAL RISKS TECHNOLOGICAL RISK Low quality Poor cost management Delivery risks Insufficient funding Process risks Dependency on few suppliers Procurement beyond initial - Access privilege Providing inadequate information budget - Authentication Failure to fulfil the conditions of Variations in price and foreign the contract exchange - High cost of upgrading Contract design Loss or damage to goods in - Lack of audit trail transit 8

OPTIM IMIZE TECHNOLOGY FOR AUDIT IT WORK File File Line of extraction organized inquiry Audit Analysis Data findings function selection 9

PROCESS 1. DATA REQUIREMENT 2.DATA DOWNLOADING 3.DATA VERIFICATION 4.DATA ANALYSING 5.DATA MANIPULATION 6.FINDING VERIFICATION 10

AUDIT ANALYSIS 11

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AUDIT FIN INDINGS ▰ Forms audit ▰ Develop audit criteria conclusions based on COMPLIANCE based on audit gaps and associated objectives risks. PERFORMANCE RISK ASSESSMENT 13

AUDIT CONCLUSIONS/REPORTING COMPLIANCE WASTAGE RED FLAGS MANIPULATION VALUE FOR MONEY MISAPPROPRIATION 14

FIN INANCIAL STATEMENT AUDIT 15

FIN INANCIAL STATEMENT AUDIT 16

THE AUDITOR GENERAL’S DASHBOARD 17

THE AUDITOR GENERAL’S DASHBOARD 18

THE AUDITOR GENERAL’S DASHBOARD 19

CHALLENGES UNDERSTANDING BUSINESS PROCESS UNDERSTANDING DATA SRUCTURE AVAILABILITY AND COMPLEXITY OF DATA SELECTING THE APPROPRIATE METHOD/TOOLS FOR DATA ANALYTICS. 20

CONCLUSIONS ▰ Benefits of data analytics in performing audit works; a) Capable to identify associated risks to procurement; b) Facilitate auditors to identify red flag based on pattern of data; c) Optimize audit works, analysis and findings within stipulated timeframe; d) Ability to analyze a huge amount of transactions; and e) Ability to conduct 100% data testing. 21

THANK YOU 22