TRANSFORMING INTERNAL AUDIT WITH ANALYTICS Presented by Sundar
TRANSFORMING INTERNAL AUDIT WITH ANALYTICS Presented by Sundar Victor, Sr. Data Analytics Manager Rahul Sharma, Data Analytics Manager #ALTERYX 18
AGENDA • About us • Traditional Audit Processes • Data Analytics Integrated Audit Process • Advanced Analytics Tools #ALTERYX 18
ABOUT US Sundar Victor is an analytics leader in Aetna's Internal Audit. He has extensive experience in implementing state of the art analytics solutions across various domains from Biomedical, Industrial & Insurance Industries. Lately his focus has been in applying analytics solutions in Internal Audit using Machine Learning, Natural Language processing and Robotics. He has been a change agent and leading the implementation of Data science techniques in Internal audit in Aetna and in GE. He is a hands on technical coach, digital/analytics leader, in the transformation of analytics in Internal Audit in Aetna Rahul Sharma, CPA, is a health care Internal Audit Manager with Aetna. He is a dedicated, energetic and result-driven audit professional with over 8 experience and proven track record in conducting, managing and delivering analytics based audit and risk assurance projects within public and private sector. Prior to joining Aetna, Rahul worked as a risk assurance professional with Pricewaterhouse. Coopers and Deloitte where he led the teams focused on risk, compliance and process improvement providing services to automotive and healthcare clients in Mid-West market. Rahul is a CPA and graduated from University of Denver with Master of Business Administration (MBA). #ALTERYX 18
TRADITIONAL INTERNAL AUDIT PROCESSES #ALTERYX 18
WHAT IS INTERNAL AUDIT #ALTERYX 18
TRADITIONAL AUDIT PROCESSES Risk Monitoring Risk Assessment Process Understanding Control Assessment Substantive Testing Audit Reporting #ALTERYX 18
DATA ANALYTICS INTEGRATED AUDIT PROCESS #ALTERYX 18
AETNA – IA DATA ANALYTICS PROGRAM Operations Continuous Audit Development #ALTERYX 18
AUDIT PLANNING & REPORTING Reports ü Audit Plan Visualization Applications Archer ü Resource Utilization ü Audit Plan Status Report ü Audit Dashboard #ALTERYX 18
TRANSACTIONAL TESTING ü Whole population is tested rather than sample testing – usually in Millions ü Higher assurance on accuracy and completeness ü Integration of different analytics technology for automation – Tableau, R, Alteryx, Databases ü Automation ü Scheduling #ALTERYX 18
PROCESS UNDERSTANDING Descriptive Analytics ü ELI Dashboard Diagnostic Analytics ü Rules Based ü Summaries ü Predictive ü Outlier Detection ü Unsupervised ü Sankey Diagram ü Risk Monitoring ü Text Analytics ü Risk Scoring #ALTERYX 18
PROCESS UNDERSTANDING #ALTERYX 18
Process Understanding - ELI Robot Application: Automated - analytics Technique: Robotics, Analytics, Robot Automation Aetna Examples: Appeals Audit, Sales Incentive, Kuwait Impact: Data Discovery & Insights in 15 – 20 minutes, save 20 - 30 FTE hours/project Tools: Alteryx and Tableau #ALTERYX 18
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AETNA – IA DATA ANALYTICS PROGRAM Operations Continuous Audit Development #ALTERYX 18
Text Mining Application: Information Extraction on Images Technique: Optical character Recognition, Machine Learning , Regex Aetna Examples: Appeals Audit Impact: 32 letters incorrect receiving date, 1 has incorrect determination, 4 had incorrect member/provider name (1000) Tools: R, Omnipage, Alteryx #ALTERYX 18
Automation/Data Science/Reporting Data Management Data Science/Automation/BI Operations Supervised Model Data Acquisiti on Data Validati on T&E Rules Testing Unsupervised Model Risk Model (2 Tabs) Dashboard ELI (4 Tabs) Scripts/Scheduled Risk Trend Tab) (1 Top 200 Risky Transactions Archer (1 Tab) Auditor Evaluation ü Schedule to run the 2 nd day of every month. Data runs a month behind because of the DW update schedule. E. g. 12/2/17 will run the month of November. ü Extracts data automatically analytics is executed. from source systems and ü Data Validation email issue with the data evaluation results (pass or fail). ü Dashboard shows rolling 12 -months data and include the details of the intended analysis. Dashboard #ALTERYX 18
THANK YOU Sundar Victor - victors@aetna. com Rahul Sharma - Sharma. R 17@aetna. com #ALTERYX 18
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