RPA – An overviewAudit ImpactJanuary 2017

RPA – An overview Impact on Business & Audit

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Content

Today’s session

• Disruptive technology for Finance Function

• RPA an overview

• RPA – Impact on way Audit

• Robotic Audit Automation

• Concluding remarks

RPA – An overview Impact on Business & Audit

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DYNAMIC DRIVER BASED FORECASTING

Cognitive computing and in-memoryenables advanced planning & forecasting models to mine databases and perform real-time scenario analyses, uncovering predictive trends and generating key data insights

AUTOMATED CONTROLS & EXCEPTION BASED

REPORTING

RPA enables automation of controls while cognitive

………computing tools produce exception based reporting to

reduce risk

FINANCE COLLABORATION

Digital collaboration tools available on the cloudenable and support dialogue across central and local Finance teams, the business and other functions, enhancing connectivity

EXPERT TEAMS

Finance practitioners demonstrate enhanced capabilities in the Digital space, leveraging specialized financial expertise and data-driven insights to

become key business partners

END TO END PROCESS PERFORMANCE

Cloud platforms are leveraged ubiquitously across the enterprise to enhance consistency in processes and flexibility to scale

AUTOMATED TRANSACTION PROCESSING

Robotic Process Automation enables leaner operations, reducing costs and redirecting resources toward embedded analytics that spot trends, anticipate risks and predict opportunities in high-value areas

Finance is set for Radical Transformation

RPA – An overview Impact on Business & Audit

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As appetite for automation grows, the interplay of emerging technologies will lead to fundamental changes in how business operates and delivers services to its customers

Automation Spectrum

HAL 9000

Siri

Tools

/ T

ech

nolo

gie

s

Significant traction

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Robots are here – Meet your digital workforce

• Robotic Process Automation is a

way to automate repetitive and

often rules based process

• Commonly used in Shared

Services

• RPA Software are called Robots

• Robots can do transaction

processing just like humans

• Robots use virtual machines and

dedicated logins to interact with

multiple applications and systems

in the same way as human

teams.

• Robots do not walk or talk and

not AI or voice recognition

software.

Source: The Robots are here – Meet digital workforce – A

Deloitte Report

RPA – An overview Impact on Business & Audit

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Demo

Deloitte Video on overview of RPA

RPA – An overview Impact on Business & Audit

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Robotic Process Automation in Action

RPA – An overview Impact on Business & Audit

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Know your Robots

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Myths about RPA

• Myth 1: Robots will replace Humans :

• True that repetitive tasks done by human will be automated. However training from humans is required. Technologies are not not entirely independent from humans nor are they currently able to reproduce the higher-level thinking of which humans are capable. New areas for employees to focus to create business value.

• The role will be redefined and talent will be customer focus

• Myth 2: RPA software robots are 100% accurate

• As suggested by the Deloitte whitepaper “Automate This,” “robots have no ‘common sense,’ so if a flaw in your organization's robot management process allows an obvious error to creep into the instructions provided to your robots, they will still follow those instructions to the letter — and replicate the error hundreds or thousands of times until someone spots it.”

• Myth 3: RPA marks the end of business process outsourcing (BPO)

• BPO are adopting RPA

• Front office/ customer interaction will still be manual

• Myth 4: RPA will not in all Industry

• Myth 5: RPA cost vs benefit may not be optimal

RPA – An overview Impact on Business & Audit

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Demo

https://www.youtube.com/watch?v=OT5plcRWUzU

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Robotic Process Automation in Action

RPA

Audit Impact

What does it mean to Audit and AuditorAudit Impact

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Risk in new landscape

RPA – Audit Impact

• Traditional approach to walkthrough will undergo change.

• Timing of involvement

• Segregation of duties – new paradigm

• Speed and frequency of transactions

• Logical flaws/ incorrect configuration

• Cyber threats

• Password handling

• Exception handling/ design of monitoring controls

• Information security risks

• Perspective around HR Risk

• Physical controls

• Auditing skill sets

• Challenges around machine learning and SDLC

RPA – An overview Impact on Business & Audit

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Traditional Vs New/Enhanced Focus

RPA – Audit Impact

Logical access

Operations (Backup, Job scheduling)

Data center operations

Network security

Cyber Related areas

SDLC

Script / code walkthrough controls

Automated Controls Testing

Audit Trails

Physical Security

Human Resources controls

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Approach

RPA – Audit Impact

• Detailed understanding of the areas where RPA implemented

• Audit PlansPlanning

• Understanding of the process & IT

• Identification of Risks

• Identification of Controls Walkthrough

• Evaluation of the Design of controls

• Exception handling process

• Identification of gaps

Design Evaluation

• Controls Testing

• Substantive Testing Operating

effectiveness

• Gaps reporting

• Recommendations Reporting

• Audit plans towards more

automation

• Upfront involvement of IS

Auditor/ Specialists

Approach What Changes

• New IS/IT risks

• More automated controls

• More IS Risks and

therefore enhanced ITGCC

controls

• Substantial work by IS

Auditor to test controls from

Design (Configuration

controls, Cyber risks)

• More controls testing and

OE Testing could be

minimal.

• Substantive testing will be

minimal

• Technology

recommendations

Robotic Audit

Process Automation

Robotic Audit Process Automation How will it enhance Audit

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Robotic Audit Process Automation

Leveraging Text Analytics and Artificial Intelligence, Robotic Audit Process Automation focuses on items of audit interest within a variety of documents..

Transform from Outcome/Output based approach to Input based approach

Cognitive technologies that will give help making better decisions.

Transform Document review

Better compliance due to testing of complete population

Help in Risk identification

Quick Comparisons

Deliver insights

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Summary

RPA – Audit impact

• Auditors need to look at new areas

• Logical Access Controls

• Controls around Cyber security

• Configuration controls

• Scripts/ code walkthrough/ process walkthrough

• Interface controls understanding

• Audit trails

• Cloud computing incase of Cloud based solutions

• Audit around machine learning

Auditors Skill sets needs to be enhanced

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Thank You

Questions ?