Last Updated on
Often in life, we just get confused in making even small choices like what to eat or where to go for the vacation and in many such other situations. Here there is no such scope of making a wrong choice, and even if you have made an incorrect choice, then again it will not cause you a great loss for which you have to remember your entire life.
“Should I invest in ABC company?”
“Should I make these particular changes in the product?”
“Should I take up this government project?”
But will you answer these questions or make these choices in a similar manner you did for questions like: “What to eat?”.
Well off course not, because now it involves more risk and these decisions will decide your company’s future. Moreover, these are choices that need to be made with keeping in mind the outcomes of it and not in haste, following your gut feeling. You take up these decisions consulting your company’s auditors who do Analytics which helps him understand your company and that is what this whole article is about, Analytics.
What is Analytics?
Analytics, in general, involves the study and analysis of previously-stored or generated data to draw potential trends, probable outcomes, predict the effect of certain decisions considering which that particular decision is carried out, and is given a go. Because of this era’s technological advancements, you can see the application of analytics and an analyst constantly working on statistics and figures and trends and helping in making decisions in quite less time.
On a cricket field, we see a person with every team, with a laptop constantly working on it. He or she are actually feeding data of the match into the software, and thereby this data is analyzed and is used in making the selection of players playing the next match and various other questions for the very next match are just answered by the application this analytics of data, from previous matches.
From a business point of view Analytics is a process used by auditors in Dubai to audit a company’s financial history and basically to draw meaningful trends and conclusions which helps the auditor to better understand the present market and also helps him or her to plan a business strategy which they can recommend to the company along with the risks involved in it and the benefits that strategy or decision would bring along if it works.
What is Auditing?
Auditing is a process where a person is given the job to review and analyze the financial statements of the company and check whether those statements are following the norms. Auditors in Dubai protect companies from all kinds of frauds and also prevent them from making wrong business decisions because they understand the market and they try to gain the right information from the financial statements by analytics which helps them with this.
How does Analytics help in Auditing?
The economy of Dubai has grown drastically ever since and so much so that now even a small company has thousands of transactions taking place almost every day and for an established firm it is even more than that. So how is it possible to manually interpret and study these many transactions and that too in a stipulated time. This is possible because present-day software and technology which provides analytic operations on a much wider span of data.
Data Analytics is often defined but auditors as the science of analyzing data to discover trends, patterns, deviations, discrepancies, and also dig out other useful information hidden in the data.
Audit firms in the Dubai mainly use Analytics to provide companies with risk-free audit services and even adding value to the client. The sole reason for auditors in Dubai to use Data Analytics is to improve audit quality and to provide reports being on time. It gives auditors the power to audit the large amounts of data held and processed.
Benefits of Analytics
Data or the financial statements are not just recorded as proofs and for the purpose of tax calculation but they are also used to draw that drive to take decisions because data analytics helps one to understand the market pretty well and thus predict the consequences of certain decisions which helps the company to decide whether to go with the decision or not and apart from this there are various other benefits which Analytics provide in the general audit process, which includes the following: –
- Analytics helps in a better understanding of data by representing or transforming data into multiple forms which can be changed as per the person seeing it. For the stakeholder in a different form, for investors, it would be in some other form and for the CEO in some other.
- Analytics is generally performed using computer programs, thus making the process much faster and more efficient enough to process large volumes of data. Before when such large volumes of data were not possible to be processed, auditors used to analyze only a small sample of data, which cannot be hundred per cent accurate but because of present-day Analytic skills, an auditor can now analyze the whole data in one go, and so the analyzation would be hundred percent true.
- Fraud detection now becomes a pretty easy task for the auditor in Dubai because now he or she can easily check every minute transactions precisely, in a quite less of a time, thereby allowing to have a thorough check on everyone.
Major challenges with Analytics
There are a certain number of challenges which the introduction of analytics brings to the table: –
- Many audits with analytics are done using a computer program, and there are many different programs for this purpose, and so it might happen certain times that audit report generated in one software on the auditor’s computer will not work on the software in the client’s computer.
- With the introduction of analytics data becomes vulnerable because now data is on software, and thus there is involved certain risk in data privacy.
The importance of analytics for Auditing in Dubai can not be overstated; thus, you must undertake this activity for ascertaining the true position of your business and determining the future course of action.