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International Journal of Engineering & Technology, 7 (4.38) (2018) 908-911
International Journal of Engineering & Technology
Website: www.sciencepubco.com/index.php/IJET
Research paper
Big Data Framework for Auditing Process
Siska P. Yudowati1, Andry Alamsyah2
1,2Faculty Economics and Business
Telkom University, Bandung, Indonesia
Abstract
An audit of financial report is a review of the organization financial statement that carried out by the independent and professional in
their field which is the Auditor. The Big Data methodology offered a different approach compared to the current audit procedure, which
mostly using manual process. Big Data equipped with learning capabilities and automation process in order to achieve better and faster
result. Another advantage of using Big Data methodology is to provide comprehensive and multi-dimensional view of the problem. This
paper provides a framework to incorporated auditing process and Big Data approach, specifically by mapping the internal and external
data source to one of audit process stage, which is risk assessment process.
Keywords: Big Data, Audit, Risk Assessment.
1. Introduction
Data mining is the application of specific algorithms for extracting
The process and the business overview from an organization or
company can be seen in a financial report made by the manage-
ment and as the party that is responsible for the financial report,
the management needs the auditor as an independent party to audit
the financial report because of the possibility that such financial
report contain misstatements, to ensure the fairness in accordance
with Accounting Standards and IFRS, the obligation to give the
annual financial report to the government as the taxes supporting
data and if it listed at the Indonesian Stock Exchange then they
should give the financial report periodically.
In digital economy era, currently information related to the eco-
nomic and the company business process in the form of data can
be obtained through the internet, the website, and social media
such as; blog, Facebook, Instagram, Path and WhatsApp. Data that
spread over derived from official sources as well as the unofficial
one arrayed in structured (internal data) and also unstructured
(external data).
Audit Data Analytics (ADA) is the analysis of data underlying
financial statements, together with related financial or non-
financial information, for the purpose of identifying the potential
misstatements or risks of material misstatement (Deniz et all,
2015).
If information is in the form of data available in a very high
amount so that the merger of the data will form groups of data that
can give a pattern or trend, these pattern or trend which will give a
new view towards the implied information in the data beforehand.
The need for analysis, interpretation or the handling of a pattern or
trend of the data known as Big Data.
Big Data analytics allow the auditor become capable to identify
financial reporting, fraud and operational business risk and adjust
their approach to give more relevant audit (EY Reporting: Issue 9,
2015).
Big data framework is the frame of mind that seen the data from
the size, the diversity, the speed, the value, and the processing
complexity. Big Data Framework incorporated internal and exter-
nal data to audit process. Most internal data are in the form of
structured data, where we can find easily in large-scale data ware-
house. Meanwhile, the external data sources are in the unstruc-
tured form, for example: data from the news, conversation data on
social media, forum, and the other media online. Both structured
and unstructured data can be processed using data analytics model
such as data mining, social network analysis, and text mining.
The Big Data approach has the advantages with its ability to learn
data pattern. The data pattern found could be used as a learning so
that they can predict a pattern or a certain behavior in the future.
An example is in the classification model, how we can find the
pattern of a positive or negative opinion, with the identification of
certain features, then we can group the new opinion data into posi-
tive or negative class. Another model is the extraction of im-
portant information from documents based on keywords, entities,
summaries, and other models in the Text Mining family group.
Text Mining is a method of backbones for the extraction of un-
structured data from the Internet. In general, there are other im-
portant models in Big Data framework for example regression
model, cluster, association, and others.
2. State of the Art Auditing Process
The Risk Based Audit Process
In 2014 Indonesian Institute of Accountants (IIA) decided to adopt
on International Standard of Auditing (ISA) and the other profes-
sional standards secreted by the International Federation of Ac-
countants (IFAC). The difference SPPA (Standards of a Profes-
sion Public Accountant) with ISA such as the emphasis on risk in
each of the stage of the audit. Thus, the ISA-based audit is a risk-
based audit.
Risk-based audit containing three key stages. The first stage is to
assess the risk, the second stage is responding to the risk and the
third stage is reporting. In the first stage of the audit process that is
risk assessment, the auditor performs the risk assessment proce-
dure and in this stage the auditor identifies and assesses the risk of
material misstatement (ISA 200.13) in financial report, by under-