The revolution of artificial intelligence in auditing: A transformation of practices and professional profiles

The revolution of artificial intelligence in auditing: A transformation of practices and professional profiles

The adoption of artificial intelligence (AI) in the field of auditing is driving a profound transformation in work methods and required skills. Technological advancements bring a new dimension to the efficiency and accuracy of audits, enhancing auditors’ capabilities without overshadowing the crucial role of their professional judgment.

Improving productivity and continuous auditing

According to a study by Grant Thornton and Paris Dauphine-PSL University, AI allows for a considerable diversification of auditors’ areas of intervention. It transforms periodic audits into a continuous process, significantly increasing mission productivity. AI tools facilitate exhaustive data analysis, allowing for better risk assessment and more precise anomaly detection.

Key Technologies and Usage

The most commonly used AI technologies in auditing include data visualization, automated analysis, and machine learning. These tools help explore and analyze massive volumes of data, providing refined insights into client transaction flows and accounting data. However, their adoption is still uneven, primarily due to technical and financial challenges associated with their implementation.

Skills and Profile of the Future Auditor

The profile of auditors is also evolving. While the fundamentals of the profession remain intact, the study indicates a growing need for a strong culture of data analysis and increased seniority. Continuous training becomes essential to effectively integrate AI into auditing practices, requiring a deep understanding of computerized processes and data architectures.

Barriers and Opportunities

The main obstacles to AI integration are the cost of technologies, the lack of specialized skills among auditors, and challenges related to data quality and access. Nevertheless, AI offers significant opportunities for test efficiency, sampling optimization, and improved risk coverage.

Risks and Responsibilities

The use of AI also introduces specific risks, such as parameterization errors and biases in data selection, which can affect the control of results. It is crucial for auditors to maintain critical thinking and a thorough understanding of the tools to ensure the validity of their audits and conclusions.

Conclusion

In summary, AI is redefining the landscape of auditing, offering powerful tools to improve processes and outcomes. Auditors must adapt to this new reality through continuous training and a cautious approach to the risks associated with advanced technologies.

The future of auditing promises deeper AI integration, leading to more dynamic and informative practices while preserving the critical essence of the auditing profession.

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The selection of an ERP for a new organization: a multidimensional strategic choice

Selecting an ERP (Enterprise Resource Planning) system for a new organization is a crucial strategic decision that must meet the varied needs of all stakeholders involved.

This article guides novices through the essential steps of this complex process, emphasizing the importance of a structured and well-advised approach.

Understanding multiple needs

When the finance department selects an ERP, it often prioritizes reporting and dashboard functionalities. However, these choices may not fully meet the operational requirements of various departments within the organization, which require a flexible, user-friendly, and customizable tool.

Similarly, the involvement of the IT department is crucial not only for integrating the ERP into the organization’s technological environment but also to ensure its maintainability and security against external intrusions.

Defining prerequisites and writing the specifications

Writing a precise specifications document is an essential prerequisite. This document must clearly define the needs of all internal stakeholders to avoid overly specific orientation towards a single domain like finance or IT.

This specifications document will serve as the basis for evaluating the various ERP vendor proposals.

Choosing the deployment model: on-Premise or cloud

The choice between an on-premise solution and a cloud-hosted solution involves significant advantages and disadvantages.

On-premise solutions offer total control and more extensive customization, while cloud solutions promise reduced initial costs and increased flexibility.

License costs and maintenance terms should also be considered in this decision.

Selecting partners and validation by POC

After defining the specifications, it is essential to contact targeted partners. They must demonstrate how their solution meets the requirements, either directly as standard or through specific adaptations.

A Proof of Concept (POC) is often used by vendors and integrators to demonstrate the suitability of their solution to the expressed needs.

Regulatory compliance and product evolution

It is crucial to choose a vendor capable of keeping up with regulatory changes, such as digitalization, and updating their solution without disrupting existing systems.

The annual cost of the solution, aside from additional requests, should also be accurately assessed.

Final choice and role of a neutral intermediary

The final phase of ERP selection requires gathering all key stakeholders to make an informed decision.

The use of a neutral intermediary, such as an experienced ERP consultant, is recommended to organize and guide the various steps.

This consultant will play a crucial role not only in choosing the solution but also in supporting its implementation, acting as a Business Analyst or Project Manager.

Conclusion

Selecting an appropriate ERP system is a complex process that requires deep expertise and understanding of the multidimensional needs of an organization.

Just because you have the recipe doesn’t make you an expert; contact us to assist you!

Ensuring the success of your ERP project requires more than just selecting features; it involves understanding and integrating the needs of all stakeholders to achieve a solution that will support the organization in its future challenges.

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The importance of conducting risk analysis before launching a project: the contribution of strategic tools such as SWOT

The importance of conducting risk analysis before launching a project: the contribution of strategic tools such as SWOT

Risk analysis is a fundamental step in planning any project. This approach not only helps anticipate potential obstacles but also structures the project strategy around concrete data. Tools like SWOT analysis (Strengths, Weaknesses, Opportunities, Threats), along with other complementary methodologies, play a key role in this process. Here’s why and how to integrate these tools into risk analysis to maximize the chances of project success.

1. Early identification of threats and opportunities with SWOT analysis

SWOT analysis is a powerful strategic framework for assessing the Strengths, Weaknesses, Opportunities, and Threats related to a project. It helps visualize not only internal and external risks but also strengths the project can leverage. For example, a strength might be a particularly skilled project team, while a weakness could be a limited budget. External opportunities and threats, such as regulatory changes or market evolution, are also considered.

2. Resource and budget optimization

In addition to SWOT analysis, using the PESTEL method (Political, Economic, Sociocultural, Technological, Environmental, and Legal) evaluates the impact of macro-environmental factors on the project. This analysis can reveal risks or opportunities not identified by SWOT, providing a more comprehensive view for effective resource allocation.

3. Enhanced decision-making

To complement SWOT and PESTEL analysis, using tools like Monte Carlo analysis can be extremely helpful. This tool uses simulation to predict the impact of risks on project objectives, allowing visualization of various possible outcomes and informed decision-making based on probabilistic data.

4. Stakeholder credibility and trust reinforcement

The results of SWOT and PESTEL analyses, enriched by Monte Carlo simulations, provide data-driven insights that reinforce the project presentation to stakeholders. These analyses demonstrate that all aspects of the project have been considered, thereby increasing the confidence and credibility of project managers.

5. Reduction of negative impacts

In addition to these tools, using ISO 31000 risk management principles provides a framework to systematically identify, evaluate, and treat risks. This includes creating mitigation plans aligned with international best practices, thus reducing potential negative impacts on the project.

6. Facilitation of internal communication

Communicating the results of these various analyses helps align all project team members and stakeholders on challenges and adopted strategies. The RACI (Responsible, Accountable, Consulted, Informed) tool is also beneficial for clarifying roles and responsibilities in risk management, ensuring that all relevant information circulates effectively among concerned parties.

Conclusion

Integrating risk analysis into project planning, leveraging tools like SWOT, PESTEL, Monte Carlo analysis, ISO 31000 principles, and the RACI model, is essential for anticipating and effectively managing risks. These methodologies provide a deep understanding of project issues and facilitate informed decision-making, while strengthening communication and resource management. Thus, they are not merely formalities but key components that ensure the success and sustainability of projects in an increasingly complex and uncertain environment.

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Excel, the Highlander of editors: indispensable even with cutting-edge ERP.

Despite the massive investment in sophisticated Enterprise Resource Planning (ERP) systems, many large corporations continue to rely on Microsoft Excel for certain critical tasks.

This article explores why Excel remains indispensable in the landscape of enterprise management tools, even when more complex and costly solutions are in place.

Flexibility and agility of Excel

One of Excel’s main strengths lies in its flexibility and ease of use. In an environment where governance is constantly evolving and tracking needs frequently change, Excel offers an adaptability that ERP systems often cannot match quickly. For ERP users, even making a 90-degree turn in an ERP requires careful preparation, adjusting numerous settings, and sometimes specific software development.

On the other hand, with Excel, all it takes is opening a new sheet, designing a model tailored to the new needs, and immediately starting to work.

Quick response to ad hoc requests

ERPs are designed to manage company operations in a standardized and secure manner, but they can be rigid when it comes to responding to ad hoc requests or providing customized analysis quickly. Excel, in comparison, allows users to create and manipulate data for special reports or one-time analyses without the need for IT department intervention or deep modifications in the ERP system.

ERP and Excel: Complementarity rather than substitution

Implementing an ERP does not necessarily result in the elimination of Excel. For daily and structured tasks, the ERP offers reliability and efficiency that are essential for the smooth operation of a large company’s activities. However, for exploratory analyses, financial simulations, or complex calculations that need frequent adjustments, Excel is often more appropriate.

Integration of recurring tasks into the ERP

When some tasks initially performed in Excel become permanent and recurring, it is wise to integrate them into the ERP.

This migration ensures information reliability and productivity gain, as the ERP can automate and secure the processing of regular data.

This integration must be done carefully to ensure that processes are well understood and properly configured in the ERP system.

Conclusion

Excel, despite the emergence of advanced technologies, remains an indispensable tool in the arsenal of modern enterprises. It offers flexibility and quick response capabilities that complement the robust and integrated functionalities of ERP systems.

By recognizing the strengths of each tool and using them complementarily, organizations can maximize their operational efficiency while remaining agile and adaptive to changes.

Just because you have an advanced ERP doesn’t mean you have to give up the flexibility offered by Excel.

The judicious use of these tools in tandem is essential for effectively navigating the complex and changing landscape of modern business.

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