What Is The Use Of Big Data, Data Analytics And Cloud Solutions

Auditors have the responsibilities as well as management to report internal controls. The auditors must examine closely management’s claim of effectiveness and also physically test the controls. After the examination, the auditors should express their opinion and any recommendations to fix any internal control weaknesses.

In the modern business today, there is no more manual accounting. Instead a lot of companies and businesses all over the world are trying to use and adapt by having an accounting system that is computerised, less hassle and fast processing.

Big data is buzzword in every field of business as well as research. Organizations have found its application across various sectors from Sports to Security, from Healthcare to e-Commerce.

Accounting is the process charged with the identification, measurement and the communication of economic information in the aim of allowing the desired users in making the correct decisions and judgments. Accounting has two branches depending on the users. Managerial accounting isuseful to core users unlike financial accounting which is more essential to exterior users. Management accounting is, therefore, the identification, analysis, record keeping and presentation of financial and non-financial information for internal use in planning, decision-making, and control. The managerial system not only offers past financial information on transactions, but it also enables the management

Article 1: Big Data: Bringing Big Changes to Accounting by Robert J. Capriotti – Source 1

Traditional accounting system is hard to adopt today’s dynamic and turbulent business environment as the changing business has much more data which needs to be analyzed than before. A dynamic AIS is important for today’s business especially large enterprises because it can help cut costs, control risks and better plan resources (Prasad, A. and Green, P. 2015, p. 124). Under this circumstance, technology plays an essential role on making AIS possible to response to internal and external business changes. This paper will critically discuss how technology affects the role and function of AIS. The structure of the paper is as follows. First, effects of technology on AIS, followed by identifying and describing two key skills or capabilities that accountants should have in the future. Then, examining two key ethical implications. Last, a conclusion will be presented.

Internal control is processes and standard procedures implemented by the company as guidelines in order to the safeguarding of its assets. For example every big transaction must be approved by the board of director before proceeding.

Internal control is defined as a process affected by an organization 's structure, work and authority flows, people and management information systems, designed to help the organization accomplish specific goals or objectives. It is a means by which an organization 's resources are directed, monitored, and measured. It plays an important role in preventing and detecting fraud and protecting the organization 's

Among five interrelated factors composing internal control (Figure1: The COSO Cube), there is monitoring. This is mainly conducted by internal and external auditors to assess whether implemented internal control are functioning properly and effectively. In the course of this ongoing monitoring, if some deficiencies are to be discovered, then auditors report upstream to managers and the board. Compared with internal auditors, external auditors could bring about more

There are several problems in using accounting and financial data. One is the timeliness factor – it is often several months before accounting statements are available. Another is the structure of the records themselves. Most firms do not adequately setup their accounts to provide the types of answers to research questions that they need. For example, the account systems should capture project/product costs in order to identify the company’s most profitable (and least profitable) activities.

Internal auditing is an independent objective assurance and consulting acitivity designed to add value and improve an organizations operations.

Internal control is the process designed, implemented and maintained by those charged with governance, management and other personnel to provide reasonable assurance about the achievement of an entity’s objectives with regard to reliability of financial reporting, effectiveness and efficiency of operations, and compliance with applicable laws and regulations. The term “controls” refers to any aspects of one or more of the components of internal control. (Ifac, 2010, p. 264)

Internal controls are the measures put in place by management in order to help achieve company objectives, ensure integrity and reliability of financial reporting, and comply with all applicable laws and regulations. Effective internal controls reduce the risk of fraud or theft, establish policies and protocols, reduce errors, and provide compliance to governing bodies. Internal controls over the financial reporting is a crucial piece of the controls. It is the responsibility of management to not only design and implement the controls over financial reporting, but also test the operating effectiveness of these controls. Inaccuracies on a financial statement can and may occur.

It’s easy to consider the mechanics of operations, but what about accounting and the finances of a business? Accounting is data driven

One of the biggest challenges for Big Data is how it may affect the quality of auditors’ judgements. When dealing with large amounts of Big Data, auditors must maintain the standards of independence and professional skepticism. They must not let company’s Big Data findings significantly influence their audit opinion to the point where they succumb to audit risk and issue the wrong opinion (Griffin & Wright, 2015, p. 378).