Detecting and Managing Operational, Transactional and Auditing Risk using Data Analytics

Companies depend on timely and accurate financial information. Businesses and investors both need current and reliable information for making the decisions that must be made every day. Much of the information that companies, investors and the government receives and incorporates in their long term business decisions is provided by a third party known as independent auditors and the process they undertake is called data analysis used for preventing and identifying risks. This paper explores the basic concepts and techniques of the set of tools used to detect and manage operational, transactional and auditing risk. It provides insights of the internal control evaluations that take place to ensure the accuracy of the information being audited and the reports that are drafted to summarize the audit findings. It also includes the reports and findings of that audit of the company and how the company can recognize the operational, transactional and auditing risks. This will help leading organizations and audit departments in leveraging data analytics for auditing purposes.