‘Big data will change audit practice’

The Comptroller and Auditor General of India (CAG) is creating a repository of multiple databases to add transparency and effectiveness to the audit process, CAG Shashi Kant Sharma said on Thursday.

The availability of data with auditors can change the manner of audit itself, moving from a sample-based approach to a total population analysis, Mr. Sharma said.

“The large digital database available to the auditor today can fundamentally alter the scope of audit itself, moving away from the traditional sampling approach to a total population approach,” Mr. Sharma said while speaking at an event organised by the Institute of Chartered Accountants of India and the Public Interest Oversight Board.

“This analysis and methodology and audit planning can be made more effective through the analysis of big data.”

Towards the easier use of big data, the CAG said that his organisation was creating a large database that would include data from various sources in a bid to add transparency to the audit process.

“We are taking a census of data sources and creating a repository of data dumps that need to be accessed,” he said.

“We are developing a protocol for assessing the information without breaching the integrity and confidentiality of the databases.”

Earlier, Mr. Sharma spoke about the development of the need for audit services in the Indian economy as it had grown more globalised post-liberalisation.

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Printable version | Jan 19, 2022 8:25:05 PM |

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