S P OT LI G H T
Implementing CA and CM
Whether you adopt one or both of these practices, your entire
team should be involved in strategizing implementation. Start
the process by considering these six questions:
DATA DASHBOARDS
Also known as an executive dashboard or business
intelligence dashboard, the data dashboard is
a customizable management tool that provides
real-time performance metrics at a glance. As an
integral part of continuous auditing and continuous
monitoring, this visual tracker displays metrics,
data points, and key performance indicators,
providing valuable insights that drive decision-
making across your company.
When choosing the right dashboard for your
company, consider the following features:
� DATA AUTOMATION. A dashboard should contin-
uously pull information from existing sources and
programs, rather than rely on manual input and
updates. Outdated, inaccurate dashboards can
be worse than not having one at all.
� ACTIONABLE METRICS. Many companies include
“vanity metrics” on their dashboards that cannot
be acted upon. Be sure the data you display
on your dashboard lead to clear decisions and
consequences.
� ACCESS & REPORTING. Personnel in the field and
managers on the floor will require your dashboard
to interact on multiple platforms. Some dashboards
also have SMS capabilities and will send instant
alerts based on predefined thresholds.
� EASY NAVIGATION. Don’t choose a dashboard
that crams in too much information. Your company
snapshot should either fit on one screen or use
tabs to segment the information.
� CUSTOMIZATION. Resist the urge to show every-
thing to everyone and be discerning about what
you want reported to each division. Depending
on seniority level and employee function, your
dashboard should be capable of simultaneously
displaying various sets of data or the same data
presented differently.
� HOLISTIC SOURCING. Make sure your dashboard
casts a wide net and tells your whole story using
metrics from across, and outside, your company.
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WHO WILL SPEARHEAD?
Every initiative needs a champion, and this effort is no
exception. Because CA is driven by internal audit and CM
by management, there must be an established leader who
can communicate to both entities in the event of a policy or
implementation change. The leader also garners support from
all stakeholders and establishes systems that maximize the
interactive efficiency of the dual functions.
WHAT ARE OUR PRIORITIES?
There are myriad approaches to CA and CM, but your company
should develop a custom plan based on your own industry,
resources, company culture, and goals. Define your unique key
risk indicators (KRIs) and decide on a monitoring process and
an accountability structure for each. Extrapolate from your
KRIs the business systems to be monitored or audited and
consider regulatory requirements and performance concerns
for each. Make sure your overall approach aligns with your
company’s goals and objectives.
WHICH RESOURCES WILL WE USE?
The two major assets that must be considered in CA and CM are
people and technology. There are numerous computer-assisted
auditing and monitoring tools available, but the program you
choose is no more important than the people you train to imple-
ment it. List all of your sources and systems, and the data available
from each, then define universal rules, routines, and procedures.
WHEN IS THE BEST TIME TO BEGIN?
Adopting CA and CM will present major shifts in your business
paradigm, so take an iterative approach to its implementation.
Start slowly, monitoring already well-documented transactions,
like accounts payable or accounts receivable. When you become
more familiar with the system and its possibilities, you can
flesh out its application. Schedule phases based on your unique
circumstances with regard to cost and benefits.
HOW WILL DATA BE REPORTED?
Present formal results and key insights regularly using the
most recent data available. Determine which managers will
receive reports, how often, in what format, and the specific
information that will be included in each. Decide early in the
process how you will determine if the exercise is meeting its
intended goals.
WHAT WILL WE DO WITH THE FINDINGS?
Based on results, make appropriate assumptions about discrepan-
cies and risks, then determine adaptive steps. Measure the impact
of the findings and determine how and when you will calibrate
operations. Set up clear indicators that your operations are getting
smarter and that controls are becoming stronger as a consequence.
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