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Accounting, Auditing & the Robotic Process Automation (Oh My!)
Presented by:Justin Bailey & Chris Heitkamp
Moderated by:Tonya Preston
TODAY’S PRESENTERS
Chris HeitkampConsultantCincinnati
Justin BaileyConsultantCincinnati
Accounting, Auditing & the Robotic Process Automation (Oh My!)
Accounting and audit are key areas where Robotic Process Automation (“RPA”) is transforming the way businesses operate, because it is not limited to just performing simple calculations, but rather the automation of entire processes. As these technological advancements occur, organizations are more capable of increasing efficiency while making more informed business decisions.
Introduction
• What is RPA?
Evolution of Automation
• Macros & Scripts
• BPA (Business Process Automation)
• RPA (Robotic Process Automation)
• IPA (Intelligent Process Automation)
• Algorithmic Business
What can bots do?
• Rules-based triggers/follow if/then decisions/rules• Data Scraping from web/forms• Data Entry• Third Party Integrations• Document Image Capture• Audit trail/metrics• Open emails and attachments
What can bots do? (Continued)
• Log into/connect to web/enterprise applications• Copying & pasting• Move files & folders• Extract structured data• Read and write databases• Make calculations
What can bots do? (Continued)
• Match Invoices• Read Contracts• Continuously check if transactions are still in compliance• Send & receive messages• Compare records (tables across multiple applications)• Automate activities• Learn how to respond to events or occurrence
What do bots need?
• Electronic documentation• Structured data• Rules-based processes • User access rights
RPA Implementation
• Identify, assess, and prioritize automation opportunities
• Planning and discovery
• Business Case and Value of RPA
• Initial Execution
• Benefits Realized and RPA Steadied
Identify, assess, and prioritize automation opportunities
• Extensive manual processes
• Repetitive tasks
• Well defined, structured data
• Unlike; constant updates to a process
Planning and discovery
• Center of Excellence (CoE)• Provides structure and governance
• Who will monitor the bots? • Dedicated team within the CoE
• Types of CoE• Centralized• Hub and Spoke
Planning and discovery (Continued)
• Implementation Timeline
• Skill Development Plan
• Software Selection• Key vendors
• Optimize and Re-engineer current processes
Business Case and Value of RPA
• Benefits• Metrics
• Full-time equivalents• ROI• Improved Customer Satisfaction
• Pain Points• Visibility
Initial Execution
• Stakeholder approval
• Define the path moving forward
• Change Management
• Work smarter, not harder
• Development and Reskilling
Initial Execution (Continued)
• Pilot Automation
• Collaboration
• Continuous Monitoring
• Metrics/KPIs
Benefits Realized and RPA Steadied
• Pilot requires close human supervision
• Lessons learned
• Refinement of RPA
• Scaling strategy
High Impact functions for RPA
• Structure and Regulation• US GAAP• IFRS• Federal, state, and local laws
• Use cases• Accounting/Finance• Audit• GRC• Human Resources• Data Analytics
High Impact/Use Cases– Accounting & Finance
• Accounts Receivable/Billing• New customer Setup• Credit approval• Cash receipts processing• Pricing reviews• Send late notices via email• Customer complaint tracking
• General Accounting• Data extraction from systems• Data validation• Calculation and processing of rebates/discounts &
commissions• Collect and abstract data for lease or revenue
transactions (accounting standard changes)• Journal Entries• Account Reconciliations
• Accounts Payable/Procurement• New vendor setup• Matching requisitions to purchase orders• Data entry and payment preparation• Invoice processing
• FP&A/Management Reporting• Prepopulate budgets/forecasts using historical
and market data• Create variance reports
• Tax• Sales & use tax reconciliation• Automated generation of footnote disclosure
tables• Computing interest and penalties on uncertain
tax positions• Prior year data rollforward• Renewal monitoring/processing
Use Cases – ITGC Testing
• New user access
• Terminated user access
• User access reviews
Use Cases – Business process control testing
• Manual JE review• New hire setup• New customer setup• New vendor setup• Duplicate payment review• Fixed asset recons• Rev rec monitoring
Use Cases – Internal audit activities
• Creating status reports• Drafting audit reports• Document testing lead sheets/workpaper prep• Artifact requests & tracking• Identify issues in issue management platforms• Remediation follow-up• Tracking and monitoring Key Risk Indicators (KRI’s)• Reconciliation of matrices to testing observations, issues log, and
final report to ensure alignment
Use Cases – GRC data download/upload
• Consolidate data for report development from disparate compliance/security platforms
• Distribute or publish reports in a location
• Prepopulate annual reports by collecting data from multiple finance systems and reports
Use Cases – Human Resources
• Application Screening
• Onboarding
• New Hire Setup
Intelligent Process Automation (IPA)
• Intelligent automation toolbox • Chat bot• Machine Learning (ML)• Natural language processing (NLP)• Optical Character Recognition (OCR)• Speech recognition• Supervised learning• Deep learning
Data Analytics
• How does it relate?
• How does it benefit?
• Use cases
Compliance and Regulations
• Relatively new
• Full Population Audits
• Oversight
• Operational Goals
Benefits
• Reduces human error/Consistent/Reliable/Accurate (24/7/365)• Do more, faster• Remain in control of processes (eliminates the need to offshore) Right
shoring• Cost reduction, Reduces manual operations costs by 25-40%, or more• Ease of implementation (low risk, noninvasive technology; can be laid
over existing systems)
Benefits (Continued)
• Focus on the value-adding/creating tasks for employees, which leads to productivity increases
• Increased employee satisfaction/lower attrition• Improved compliance and reporting/full audit trail• Scalable (across industries, geographies, functions)• Duration (typically takes 9 to 12 months with an ROI less than 1 year)
Risks
• Risk of missing rules (RPA can only do what it’s told to do)
• Processes not mapped correctly (activities may be performed incorrectly or be incomplete)
• Natural human safeguards removed (if you get it wrong, you consistently get it wrong)
• Human access to bots leads to SOD risk (access to bot credentials must be controlled to prevent unauthorized access)
Risks (Continued)
• Bots may be set up with excessive access to systems
• Bots/bot environment may become unavailable (if the system crashes or goes down)
• It is estimated that between 30-50% of initial RPA projects fail because of inadequate planning and execution
Conclusion
• When implemented correctly, RPA can benefit:• Customers• Staff• Management• IT• Processes• Profitability
