The next frontier in data analytics ---
http://www.journalofaccountancy.com/issues/2016/aug/data-analytics-skills.html?utm_source=mnl:globalcpa&utm_medium=email&utm_campaign=31Aug2016
Note the Four Types of Data Analytics
Jensen Comment
I remember the that Andersen's audits became more and more disreputable as they replaced detailed test checking with what was then called "analytical review." For example, after the collapse of WorldCom (which was when Andersen perhaps conducted the worst audit in the history of the world) the Purchasing Department purportedly had not seen an Andersen auditor in years. Every respectable audit firm knows the that detailed test checking is extremely important in inventory auditing and purchasing department auditing (where kickbacks from suppliers are the juiciest).
Perhaps the most common complaint in PCAOB inspections of audit firms is the cutting back of detailed test checking in favor of lower cost analytical reviews.
The next frontier in data analytics ---
http://www.journalofaccountancy.com/issues/2016/aug/data-analytics-skills.html?utm_source=mnl:globalcpa&utm_medium=email&utm_campaign=31Aug2016
Note the Four Types of Data Analytics
Jensen Comment
I remember the that Andersen's audits became more and more disreputable as they replaced detailed test checking with what was then called "analytical review." For example, after the collapse of WorldCom (which was when Andersen perhaps conducted the worst audit in the history of the world) the Purchasing Department purportedly had not seen an Andersen auditor in years. Every respectable audit firm knows the that detailed test checking is extremely important in inventory auditing and purchasing department auditing (where kickbacks from suppliers are the juiciest).
Perhaps the most common complaint in PCAOB inspections of audit firms is the cutting back of detailed test checking in favor of lower cost analytical reviews.
September 8, 2015 Blog Post by Brian Sommer
http://diginomica.com/2015/09/08/when-accounting-meets-big-data/#.Ve8HdLQr780
SUMMARY: Brian Sommer returns from spending quality time with accounting professionals looking at the topic of ‘big data.’ This is what he discovered.
http://cdn.diginomica.com/wp-content/uploads/2015/09/big-data-accounting-1.jpg
Over the last few weeks, I’ve given a number of keynotes, participated in several panels and run a major chunk of a Big Data event. The focus has been to answer the question “Can or should accountants care about big data?” While most of the technologists reading this will likely say something like “Sure” or “Absolutely”, the accounting-oriented audiences I met with were initially and deeply skeptical.
I watched these many weeks, as different speakers explained:
But the accountants and accounting professors weren’t moved. At least they weren’t moved until they were confronted with some overwhelming proof points of where big data is being used to:
To date, many accountants have seen big data as something used by people in business operations or marketing. They incorrectly see it as being immaterial to the job/role or value that accountants can bring to businesses. That perspective is wrong.
Big data use cases
For last week’s American Accounting Association’s Accounting IS Big Data conference, I researched 12 use cases where Big Data was definitely impacting Accounting, the companies using the Big Data, and the competitors of firms using this information. These use cases covered how:
Over 200 people worked in teams to review piles of news stories, reports, and other data sources around specific use cases. They then reported out to the conference attendees:
Following these de-briefs, the audience identified a number of ah-ha moments while also raising a number of concerns that the profession must address. A sampling of these involved:
The use cases were the key to changing perspectives.
The new kids on the block
The use cases also introduced accounting professionals to a whole new group of technology and data vendors. These included:
What else did accounting professionals learn?
Will the profession change?
Will the profession change overnight? Probably not. Accounting is a profession that changes when others start to change, surface issues and begin to experiment. The recent exposure to big data may start that change. Technology vendors will not wait for the profession and it’s their innovations (and continuing adoption by businesses) that will act as a continuing catalyst for change. This should be a fun one to watch.
Disclosure: SAP, Infor, Workday and Salesforce are premier partners at time of writing.
Featured image credit: © Mark Carrel – Fotolia.com
September 8, 2015 Blog Post by Brian Sommer
http://diginomica.com/2015/09/08/when-accounting-meets-big-data/#.Ve8HdLQr780
Member Only Conference Resources on Accounting IS Big Data.org
The conference was organized around four questions: What IS big data? How is it transforming accounting? Who can help us? and What is the impact on the academy? Here are links to the conference resources organized by the questions.
What IS big data?
How is it transforming accounting?
Who can help us?
What is the impact on the academy?