The future of audit outlines the vision of Pieter de Kok regarding the future of audit. Process mining, data-analytics, open data, big data, predictive assurance, cloud, gamification. Coney developed the EYE of Audit Disruption.

1. “Future of Audit”
(or back to the future?)
Drs Pieter de Kok RA

4. “Future of Flying”

5. To the moon and London to Sydney in just two hours

6. FUTURE OF HIGHWAYS
By Daan Roosegaarde

8. TODAY

9. Limited ‘BI’ & data awareness in
audit & reporting domain
Limited standardisation, low
efficiency in adopting new analytics
technology
IT tools are all over the place, no
integrated approach
A lot of talking…
Low added value perceived by
clients, low fun factor experienced
by teams
Current General
landscape
Assurance &
Reporting services

12. Key Objectives of
CONEY today
Provide for Smart & Easy analytics
Innovate our assurance proposition
Operating an Analytics platform
Connectivity to the max
“Automate routine activities”
Get closer to our clients
Identify new service opportunitiesData-
Analytics
Process
Mining

13. TODAY
Basic settings
Identify continuous improvement
opportunities
Analyses on risk, control, audit and
performance KPI’s
Extract financial and other data from
various ICT systems
Steer and respond on actuals

14. TODAY Basis
Deliverables
Business Trends & Developments reporting
Workflows audits through process mining
Online dashboards for presentations
Audit Alerts & Exceptions
Periodic ‘Automated’ audit procedures
Starreveld based auditing – ad hoc
http://www.co
ney.nl/portfoli
o/process-
mining-
demovideo/

15. Purchasing
Hours x
Freelance Rate
Sales
Hours x
Sales Rate
Cash
Receipt
Cash
Disbursment
TEMP
services
Cash
Payables ReceivablesClose
To Real Time
Audit Approach Today

16. TODAY Basis
Deliverables
Connect with digital files
Exception management
Connectivity
Connect to different source systems
XBRL/SBR/Audit files
Open source systems

17. NEXT 3 TO 5
YEARS

18. THE EYE OF AUDIT DISRUPTION

19. NEXT 3 to 5
YEARS
Use open data, build smart, big data solutions
for clients
Share new business insights to your clients
Extend insights to wider group of stakeholders
by opening platform
Provide your clients access to an Analytical
Platform
Monitor Business Performance
Increase of
Advanced
Business Analytics
in Audit
Further integrate statistical analytics

20. We need to build Audit Data Standards
Around
NEXT 3 to
5 YEARS

21. Build New Audit Data Standards
(powered by the AICPA)
• Computer procedures and controls are sitting between the data and the auditor
• Audit Data Standards facilitate development of (semi) automated audit tools
• Move away from disparate data systems and repeated request for data
• Create a COMMON DATA STORE and it is about the question ‘WHAT DATA
DO WE NEED PER PROCESS’
NEXT 3 to
5 YEARS

22. Invest in global research to develop true
automated audits
INVEST
NEXT 3 to
5 YEARS

23. A lot of work ahead: Data Level Assurance
(Hans Verkruijsse, discussion started in1970….)
• This is about ‘Financial Reporting and Data-Analytics*’, we need to question,
‘What Do We Get?’
• Today’s data assertions are supported by mix of GAAS, evaluation of controls,
professional judgment and wishful thinking
• Tomorrow’s data assertions, in a standardized world (SBR)? How do we ensure
assurance?
* In data-analytics driven audit….

24. https://www.nba.nl/Documents/Evenementen/2014/Presentatie%20Internat
ional%20Update%2020%20maart%202014.pdf
MAART 2014..scroll to the end…

25. We will see more Advanced Analytics
TRADECOMPANY3.0
NEXT 3
TO 5
YEARS

26. Enterprise
Data (xyz)
Enterprise
Data (xyz)
INPUT
Business
Risks
Controls
Analytics
OUTPUT
Data Extraction VisualisationData-Scripts & Events Logs
Tableau
PARIS
ACL Based
Online Data-
Analytics
ALLINCLoudAUDIT
S
Datafactory
NEXT 3-5 YEARS

27. NEXT 3 to 5 YEARS
MORE STEPS TOWARDS
INTEGRATION PROCESS
MINING AND DATA-
ANALYTICS
Controls Performance
Business Improvements
Process Redesign
Risk management

28. NEXT 3 to 5
YEARS
True Revival of
Dutch Audit
Methodology
Starreveld

29. NEXT 3 -5 YEARS

30. NEXT 3 -5 YEARS

31. And integration of predictive analytics in audits..
TRADECOMPANY3.0
NEXT 3
TO 5
YEARS

32. Examples predictive analytics in audit
TRADECOMPANY3.0
Company
1
Company
2
Company
3
PREDICTING
INTERGROUP
CASHFLOW
MOVEMENTS
PERFORMING
STRESS
TESTING

33. Online
Audit Files
with a lot
of APPS
NEXT 3 to 5 YEARS

34. LOOKING AHEAD
BEYOND 5 YEARS

35. AUDITING THE UNKNOWN
(copy link below in your browser)
https://www.youtube.com/watch?v=Zr9W5IG6LKo
MOVIE
BEYOND 5 YEARS

36. BEYOND 5 YEARS
PROCESS
MODEL
FACTORY
RETAIL
PRODUCTION
PROFESSIONAL SERVICE COMPANIES
ETC
Procurement Sales
Cash
Payments
Cash
Receipt
Top Cycle Approach Examples:

37. PROCESSFACTORY
PROCESS MINING FUTURE
1. Global Upload SOLL Best Practice Process Models
(based on Starreveld) by students, auditors and
business
2. Global Download SOLL Best Practise Process Models
3. Automated SOLL and IST Process Mining comparisons
4. Best Practice Sharing through the Process Factory
resulting in rating Best Soll Models.

38. BEYOND 5 YEARS
SIMULATION
CONTROL
FRAMEWORK
PROCESS MINING
IMPROVE CONTROLS
IMPROVE EFFICIENCY
MANAGE RISK
REDUCE COMPLIANCE COST
Procurement Sales
Cash
Payments
Cash
Receipt
WHY SIMULATION

39. BEYOND 5 YEARS
ASSURANCE
ON DEMAND
(XBRL Driven)
Same Data, different presentation
formats
Same Data, different Assurance
levels
Focussing on specific interests, by
specific stakeholders
Beneficial for small & mediumsized
companies
Assurance On Demand:

40. BEYOND 5 YEARS CONTINUOUS
STORY TELLING
Socially Focused
Using New Media
Extended Audience
Advanced Visualisation
Continuous Storytelling

41. BEYOND 5 YEARS
We will see
Channel
Assurance
FRANCHISE

42. INSURER
BROKER
VALUATOR
policy
premium
damage
report
request
report
policy w/o premium
premium w/o policy
EXCEPTIONS
Algorithms Monitoring the Channel of Companies
ACROSS THE CHANNEL ASSURANCE

43. BEYOND
5 YEARS
How will
Internet of
Things impact
Process mining?

44. BEYOND 5 YEARS Gamification &
Audit Education

45. At the end…we will see:
Integration Data-Analytics & Process Mining
new tools
3.0
BEYOND 5 YEARS

46. WE NEED A AUDIT
LAB
RIGHT NOW!

48. Questions!?