Our Director of Assurance Jamie Drummond has been featured in leading trade publication Accountancy Today on the topic of making the most out of data analytics tools.

The article looks at how reviewing data is a key part of the audit process and the future of accounting, but that the use of tools is not widespread.

“Since auditing began, it has revolved around some form of substantive analytical review, testing of controls, and audit sampling. But the explosion of data and its accessibility – primarily through the cloud, alongside new interrogative tools – means that an auditor could conceivably check every transaction within a client’s books and records,” writes Jamie.

The article outlines the three main reasons why firms may not be using data analytics tools:

• Firms don’t always have the budget to invest in these tools
• There is a lack of guidance and rules from the regulatory bodies around the use of data in relation to audit
• The risk-averse nature of the profession, which shies away from innovation

The article argues that an external service provider would help many firms, by providing training and support around the use of data tools, and considers how this would also help the client experience.

Jamie concludes by announcing that PKF is launching its own network-wide advanced data analytics (ADA) framework - a reference guide to data analytics tools.

Read the full article in Accountancy Today

Further information on the ADA framework will be released soon – check our social media channels for updates.