Big Data, Machine Learning and the AuditorBHARATH RAO AND ANAND P JANGID

Data and Big Data - Intro

Data includes any piece and bit of information which can be recorded and stored to be put in use in the future

Big Data is a scientific field of information analysis wherein the following processes are part.

- Data Identification - Data Source Identification - Data Storage - Data Categorization - Data Analytics - Data Reporting - Life of Data

Machine Learning - Intro

Machine learning is the field that gives computers the ability to learn without being explicitly programmed

Supervised learning: Maps inputs to outputs.

Unsupervised learning: No labels are given to the learning algorithm, leaving it on its own to find structure in its input.

Reinforcement learning: A computer program interacts with a dynamic environment in which it must perform a certain goal (such as driving a vehicle), without a teacher explicitly telling it whether it has come close to its goal.

Analytics PerformedGeneral

Analytics of Data

Analytics for External

Confirmation

Predictive Analytics

Areas for Analytics and Machine Learning

Enterprise Risk Management

Audit Risk Management

Fraud Risk Management Automation

Internal Audit New Fraud Patterns

Control Assessments Forensics

Use Cases for Analytics and Machine Learning

- Identification of Vendor Collusion- Predictive Analytics for determining the chances

of a bad debt- Process Mining and identification of process

weakness- Compliance Management- Automation of Internal Controls and it’s

enforcement- Travel and Expense Claims frauds- Governance, Risk and Compliance- Identification of gaps and weakness in Material

Management

- Vendor Validation- Identification of anomalies- Determination of effective point of Revenue

Recognition- Expense Analytics and determination of

provisioning- Data Mining- Identification of Fraud for promotional

items- Performance Evaluation against budgeted

funds and time- Three way match and Payment Analytics

Statistical Theories used for Predictive Analytics

Logistic Regression

Linear Regression Skewness

Kurtosis Testing of Hypothesis Correlation

Statistical Dispersion

IndustriesInsurance Banking FMCG Telecommunicati

on

Aerospace Automobile Oil and Petroleum Manufacturing

Steel Real Estate

Opportunities in Big Data Analytics

Big Data Pre Implementation Preparation

Big Data Analytics

Framework Design

Big Data Design of

Dashboards, Reports and

Visuals

Big Data Assurance

In the words of Gordon Gekko, Wall Street (1987)

Thinking out of the Box

An Auditor being exposed to variety of business, data, knowledge, etc. would be considered the right person to provide solution for a company to implement Big Data and effectively using Machine Learning for Assurance, Automation and Control.

Thank You CONTACT BHARATH RAO BHARATH.RAO@QUADRISK.COM