DATA ANALYTICS TO MIT ITIGATE RIS ISKS IN IN THE AUDIT OF - - PowerPoint PPT Presentation

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Jul 20, 2023 141 likes •369 views

PLAN DATA ANALYTICS TO MIT ITIGATE RIS ISKS IN IN THE AUDIT OF EXECUTION PROCUREMENT ANALYSE BY: DR. ALIFAH AIDA LOPE ABDUL RAHMAN AUDIT CONLCUSION NATIONAL AUDIT DEPARTMENT OF MALAYSIA REPORT 1 AGENDA Introduction Audit

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DATA ANALYTICS TO MIT ITIGATE RIS ISKS IN IN THE AUDIT OF PROCUREMENT

REPORT AUDIT CONLCUSION ANALYSE EXECUTION PLAN

BY: DR. ALIFAH AIDA LOPE ABDUL RAHMAN NATIONAL AUDIT DEPARTMENT OF MALAYSIA

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AGENDA

▰ Introduction ▰ Public procurement in

Malaysia

▰ Public procurement

process

▰ Audit Process ▰ Optimize technology for

audit work

▰ Audit analysis ▰ Auditor General’s Dashboard ▰ Challenges ▰ Conclusions

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IN INTRODUCTION

National Audit Department is:

An independent government agency in Malaysia
Responsible to carry out audit on the accounts of

Federal Governments, State Government and Federal Statutory Bodies as well as the activities of the Ministries/Departments/Agencies and Companies under the Federal and State Governments.

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PUBLIC PROCUREMENT IN IN MALAYSIA

▰ Types of procurement

a) Tenders b) Direct negotiation c) Quotation d) Direct purchase e) Balloting

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PUBLIC IC PROCUREMENT PROCESS

PEOPLE

Operational Decision making

PROCESSES/
POLICIES

Accountability Compliance

TECHNOLOGY

Applications Tools

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AUDIT O OBJECTIVES

Compliance

Adhered to rules and regulations

Value for money

Economy, efficiency, effectiveness

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RIS ISK MANAGEMENT MODEL

Identify Analyze Control Monitor

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RIS ISKS IN IN PUBLIC PROCUREMENT

BUSINESS RISKS

Low quality Delivery risks Dependency on few suppliers Providing inadequate information Failure to fulfil the conditions of the contract Contract design

FINANCIAL RISKS

Poor cost management Insufficient funding Procurement beyond initial budget Variations in price and foreign exchange Loss or damage to goods in transit

TECHNOLOGICAL RISK

Process risks

Access privilege
Authentication
High cost of upgrading
Lack of audit trail

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OPTIM IMIZE TECHNOLOGY FOR AUDIT IT WORK

File extraction File

rganized

Line of inquiry Data selection Analysis function Audit findings

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PROCESS

1. DATA REQUIREMENT

2.DATA DOWNLOADING 3.DATA VERIFICATION 4.DATA ANALYSING 5.DATA MANIPULATION 6.FINDING VERIFICATION

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AUDIT ANALYSIS

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AUDIT FIN INDINGS

▰ Develop audit criteria

based on audit

bjectives

▰ Forms audit

conclusions based on gaps and associated risks.

COMPLIANCE PERFORMANCE

RISK ASSESSMENT

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AUDIT CONCLUSIONS/REPORTING

COMPLIANCE VALUE FOR MONEY RED FLAGS WASTAGE MANIPULATION MISAPPROPRIATION

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FIN INANCIAL STATEMENT AUDIT

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FIN INANCIAL STATEMENT AUDIT

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THE AUDITOR GENERAL’S DASHBOARD

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THE AUDITOR GENERAL’S DASHBOARD

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THE AUDITOR GENERAL’S DASHBOARD

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UNDERSTANDING BUSINESS PROCESS UNDERSTANDING DATA SRUCTURE AVAILABILITY AND COMPLEXITY OF DATA SELECTING THE APPROPRIATE METHOD/TOOLS FOR DATA ANALYTICS.

CHALLENGES

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CONCLUSIONS

▰ Benefits of data analytics in performing audit works;

a) Capable to identify associated risks to procurement; b) Facilitate auditors to identify red flag based on pattern of data; c) Optimize audit works, analysis and findings within stipulated timeframe; d) Ability to analyze a huge amount of transactions; and e) Ability to conduct 100% data testing.

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DATA ANALYTICS TO MIT ITIGATE RIS ISKS IN IN THE AUDIT OF PROCUREMENT

AGENDA

Malaysia

process

audit work

IN INTRODUCTION

National Audit Department is:

Federal Governments, State Government and Federal Statutory Bodies as well as the activities of the Ministries/Departments/Agencies and Companies under the Federal and State Governments.

PUBLIC PROCUREMENT IN IN MALAYSIA

a) Tenders b) Direct negotiation c) Quotation d) Direct purchase e) Balloting

PUBLIC IC PROCUREMENT PROCESS

AUDIT O OBJECTIVES

Compliance

Value for money

RIS ISK MANAGEMENT MODEL

Identify Analyze Control Monitor

RIS ISKS IN IN PUBLIC PROCUREMENT

BUSINESS RISKS

FINANCIAL RISKS

TECHNOLOGICAL RISK

OPTIM IMIZE TECHNOLOGY FOR AUDIT IT WORK

File extraction File

Line of inquiry Data selection Analysis function Audit findings

PROCESS

2.DATA DOWNLOADING 3.DATA VERIFICATION 4.DATA ANALYSING 5.DATA MANIPULATION 6.FINDING VERIFICATION

AUDIT ANALYSIS

AUDIT FIN INDINGS

based on audit

conclusions based on gaps and associated risks.

AUDIT CONCLUSIONS/REPORTING

FIN INANCIAL STATEMENT AUDIT

FIN INANCIAL STATEMENT AUDIT

THE AUDITOR GENERAL’S DASHBOARD

THE AUDITOR GENERAL’S DASHBOARD

THE AUDITOR GENERAL’S DASHBOARD

CHALLENGES

CONCLUSIONS

a) Capable to identify associated risks to procurement; b) Facilitate auditors to identify red flag based on pattern of data; c) Optimize audit works, analysis and findings within stipulated timeframe; d) Ability to analyze a huge amount of transactions; and e) Ability to conduct 100% data testing.

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