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1 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
Deploying Digital Labor in
Internal Auditing by Introducing and
Utilizing Robotic Process Automation
Justin Pawlowski
Head of Internal Audit, ALSO Holding AG
Concurrent Session 7-1 | Tuesday, 9 July 2019 | 2.15 – 3:15 p.m.
Only for participants of the IIA International Conference 2019. Do not pass this document on to anybody else.
2 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
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3 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
3 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
Insertion of Robotic Devices into Human Processes
What your team looks like.
Robotic Process Automation for Auditing, in: Journal of Emerging Technologies in Accounting, KC Moffitt, AM Rozario & MA Vasarhelyi, Spring 2018, Vol. 15, No. 1.
Panel A: Abstraction of the Shape of a Typical Organizational Structure Low-level, less-skilled workers are more numerous than highly skilled workers,
resulting in a pyramid shape.
Panel B: Abstraction of the Effect of Automation on the Typical Organizational Structure
4 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
4 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
Internal Audit Department in the near Future
WORKFORCE
HUMAN
DIGITALRule-based
Learning
Reasoning
5 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
5 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
The beginning of my career as the initial starting
point for my ambition to automate audit activities
Krakow, Poland
Gothenburg, Sweden
Istanbul, Turkey
Brussels, Belgium
Vienna, Austria
Paris, France
Madrid, Spain
Emmen, Netherlands
Leeds, United Kingdom
Wroclaw, Poland
…
Bern, Switzerland
Torino, Italy
Bratislava, Slovakia
Not every audit activity was as much fun and as shiny as
the West Coast is.
Travel activity was fantastic.
But: Recurring audit procedures
were boring.
6 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
6 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
Learning Objectives
In this session, you will:
Explore areas of application for RPA in internal auditing
(RPA internal audit “bot farm”) by demonstrating different
RPA bots in action.
Discover how to lower the total cost of audit using RPA bots.
Learn how to substantiate and quantify the value-add
provided by internal auditing using RPA.
Determine the cornerstones of an RPA roadmap for IA to
realize quick wins in the short-run and additional wins in the
long-run.
7 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
7 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
Disclaimer
The views expressed constitute the opinion of the author and the
author alone. They do not represent the view and opinions of the
author’s employer, supervisors, nor do they represent the view
of organizations, businesses or institutions the author is or has
been a part of.
The material presented here is for educational and discussion
purpose only and is up to the discretion of the participant as to
how to make best use of it.
The material is only for participants of the IIA International
Conference 2019. Do not pass this document on to anybody
else.
8 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
8 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
Introduction to Robotic Process Automation1
Use Cases in Internal Auditing2
Key Success Factors3
RPA Roadmap for Your Internal Audit Function4
Agenda
9 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
9 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
Introduction to Robotic Process Automation1
Use Cases in Internal Auditing2
Key Success Factors3
RPA Roadmap for Your Internal Audit Function4
Agenda
10 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
1 | Introduction to Robotic Process Automation
Definition RPA (IEEE)
A preconfigured software instance that uses business rules and
predefined activity choreography to complete the autonomous
execution of a combination of processes, activities, transactions and
tasks in one or more unrelated software systems to deliver a result
or service with human exception management.
IEEE Working Group on Intelligent Process Automation
“ ”
https://standards.ieee.org/standard/2755-2017.html
11 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
1 | Introduction to Robotic Process Automation
Definition RPA (IRPA)
Robotic process automation (RPA) is the application of technology
that allows employees in a company to configure computer
software or a “robot” to capture and interpret existing applications
for processing a transaction, manipulating data, triggering
responses and communicating with other digital systems.
Institute for Robotic Process Automation (IRPA)
“ ”
https://irpaai.com/definition-and-benefits/
12 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
1 | Introduction to Robotic Process Automation
Benefits of RPA
RPA bots do not sleep, tire, rest, forget, make mistake, complain
or quit.“ ”
13 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
1 | Introduction to Robotic Process Automation
RPA Tools at a Glance
https://www.computerwoche.de/a/das-sind-die-top-trends-und-anbieter-im-rpa-markt,3545401,2
... and more.
– Extract –
14 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
1 | Introduction to Robotic Process Automation
RPA vs. Cognitive Automation
”
https://assets.kpmg/content/dam/kpmg/nl/pdf/2018/advisory/internal-audit-and-robotic-process-automation.pdf
15 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
Polling Question 1Please open the conference app to participate.
1 | Introduction to Robotic Process Automation
Polling Question 1
16 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
1 | Introduction to Robotic Process Automation
Polling Question 1
Whose organization is using RPA in its
administration processes as of today?
a. Yes, we use RPA bots within our organization for more than a year.
b. Yes, we have started using RPA bots in the past year.
c. No, but we are currently launching an RPA program at our organization.
d. No, we have a need, but do not use RPA yet.
e. No, we have no need.
17 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
18 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
1 | Introduction to Robotic Process Automation
Polling Question 2
Polling Question 2Please open the conference app to participate.
19 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
1 | Introduction to Robotic Process Automation
Polling Question 2
Who is using RPA in internal auditing as of
today?
a. Yes, we use RPA bots in our department already for more than a year.
b. Yes, we have started using RPA bots in our departments in the past year.
c. No, but we are currently launching an RPA program at our department.
d. No, we have a need, but do not use RPA yet.
d. No, we have no need.
20 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
21 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
21 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
Introduction to Robotic Process Automation1
Use Cases in Internal Auditing2
Key Success Factors3
RPA Roadmap for Your Internal Audit Function4
Agenda
22 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
2 | Use Cases in Internal Auditing
Repetitive Tasks Occur in Different Fields of our Work
1)
Support2)
Validation3)
Control Testing
4)
Data Generation5)
Reporting6)
Other
23 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
2 | Use Cases in Internal Auditing
Extract from a Set of RPA Bots in Internal Auditing
Your bot farm
Your toolkit of bots
Your bot babies
…
1)
Support2)
Validation3)
Control Testing
Attachment
downloading bot
Working paper
template creation
bot
…
Distance bot
(using API)
Foreign currency
bot (using API)
…
Testing bot for
IT application
controls (ITACs)
Testing bot for IT
general controls
(ITGCs)
…
24 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
2 | Use Cases in Internal Auditing
Extract from a Set of RPA Bots in Internal Auditing
Your bot farm
Your toolkit of bots
Your bot babies
…
4)
Data Generation5)
Reporting6)
Other
Document
screening bot
(pattern/text
recognition)
ERP system
structure data
bot
…
Report creation
bot
Follow-up
operations bot
…
…
25 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
2 | Use Cases in Internal Auditing
RPA Bot in Action: Attachment Downloading Bot
1)
Support
Accessing files is a time-consuming exercise and
increases total cost of audit, independent of whether
done by the auditor or auditee.
Game changer: Today lots of files are available
electronically.
How to speed up the activity of accessing files?
26 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
1) Open ERP browser.
2 | Use Cases in Internal Auditing
RPA Bot in Action: Attachment Downloading Bot
1)
Support
27 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
1) Open ERP browser.
2) Type in transaction code.
Execute.
2 | Use Cases in Internal Auditing
RPA Bot in Action: Attachment Downloading Bot
1)
Support
28 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
1) Open ERP browser.
2) Type in transaction code.
Execute.
3) Type in document number.
Tab to next entry.
2 | Use Cases in Internal Auditing
RPA Bot in Action: Attachment Downloading Bot
1)
Support
29 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
1) Open ERP browser.
2) Type in transaction code.
Execute.
3) Type in document number.
Tab to next entry.
4) Type in company code.
Tab to next entry.
2 | Use Cases in Internal Auditing
RPA Bot in Action: Attachment Downloading Bot
1)
Support
30 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
1) Open ERP browser.
2) Type in transaction code.
Execute.
3) Type in document number.
Tab to next entry.
4) Type in company code.
Tab to next entry.
5) Type in fiscal year.
Execute.
2 | Use Cases in Internal Auditing
RPA Bot in Action: Attachment Downloading Bot
1)
Support
31 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
1) Open ERP browser.
2) Type in transaction code.
Execute.
3) Type in document number.
Tab to next entry.
4) Type in company code.
Tab to next entry.
5) Type in fiscal year.
Execute.
6) Click attachment button, click
“Attachment list”.
2 | Use Cases in Internal Auditing
RPA Bot in Action: Attachment Downloading Bot
1)
Support
32 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
1) Open ERP browser.
2) Type in transaction code.
Execute.
3) Type in document number.
Tab to next entry.
4) Type in company code.
Tab to next entry.
5) Type in fiscal year.
Execute.
6) Click attachment button, click
“Attachment list”.
7) Double click attachment.
2 | Use Cases in Internal Auditing
RPA Bot in Action: Attachment Downloading Bot
1)
Support
33 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
1) Open ERP browser.
2) Type in transaction code.
Execute.
3) Type in document number.
Tab to next entry.
4) Type in company code.
Tab to next entry.
5) Type in fiscal year.
Execute.
6) Click attachment button, click
“Attachment list”.
7) Double click attachment.
8) Save the attachment.
2 | Use Cases in Internal Auditing
RPA Bot in Action: Attachment Downloading Bot
1)
Support
34 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
2 | Use Cases in Internal Auditing
RPA Bot in Action: Attachment Downloading Bot
1)
Support
Video
35 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
Benefits
2 | Use Cases in Internal Auditing
RPA Bot in Action: Attachment Downloading Bot
Significant time savings in different audits
Cash Recovery Audit, Process Audits (e.g. Purchase-to-Pay), etc.
Increased assurance
Validation of higher number of transactions
Roll-out of bot to the business
Possibility to use the bot outside of Internal Audit function
1)
Support
36 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
2 | Use Cases in Internal Auditing
RPA Bot in Action: Distance Bot
2)
Validation
Validating mileage allowance is a repetitive and
time-consuming exercise.
How to speed up the activity of validating mileage
allowance?
37 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
2 | Use Cases in Internal Auditing
RPA Bot in Action: Distance Bot
2)
Validation
1) Open Google Maps in explorer.
38 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
2 | Use Cases in Internal Auditing
RPA Bot in Action: Distance Bot
2)
Validation
1) Open Google Maps in explorer.
2) Type in starting point.
Press tab to next entry.
Type in destination.
Press enter.
39 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
2 | Use Cases in Internal Auditing
RPA Bot in Action: Distance Bot
2)
Validation
1) Open Google Maps in explorer.
2) Type in starting point.
Press tab to next entry.
Type in destination.
Press enter.
3) Distance is displayed.
40 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
2 | Use Cases in Internal Auditing
RPA Bot in Action: Distance Bot
2)
Validation
Video
41 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
2 | Use Cases in Internal Auditing
RPA Bot in Action: Distance Bot
2)
Validation
Benefits
Distances are checked
manually on a sample
basis (200 distances
each day)
Duration: 1 minute each
Initial state
Distances are checked
using automated pre-
validation
Duration: 20 seconds
each
Automated extraction
is also used
Duration: <1 second
each
Stage 1: Automated
pre-validation
1h 7min per day
0h 5min per day
3h 20min per day
Stage 2: Automated
extraction
KPMG
Figures are for illustration purposes only.
42 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
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Customizing settings
Duplicate Invoice Check
Check reference: Is the reference
validated as part of duplicate invoice
check? X = yes; Empty = no.
Transaction code: OMRDC
Technical information
States V_169P_DC as the source, a generated view
structure. Such view structures cannot be accessed
by common data extraction tools, only ABAPs or
alike. Extraction tools need standard tables.
Example
Duplicate Invoice Check
!
2 | Use Cases in Internal Auditing
RPA Bot in Action: Structure Data Bot
Accessing structure data
is difficult.
4)
Data Generation
43 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
Example
Duplicate Invoice Check
In this example, a standard table
exists with the data needed:
Table T169P (field XXBLNR).
2 | Use Cases in Internal Auditing
RPA Bot in Action: Structure Data Bot
4)
Data Generation
44 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
Example
Payment Runs – Parameters
!
Neither your IT nor your best friend
Google has got an easy extraction
solution for this.
2 | Use Cases in Internal Auditing
RPA Bot in Action: Structure Data Bot
4)
Data Generation
45 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
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2 | Use Cases in Internal Auditing
RPA Bot in Action: Structure Data Bot
4)
Data Generation
Log: Data generated
File
ID
LAUFD LAUFI BUKRS BUDAT GRDAT BUKLS NEDAT * Processed at Processed Error
1 20990201 2421C 2421 20990201 20990201 2421 20990205 … 01.04.2099 19:12:14 Yes 0
2 20990201 2421Y 2421 20990201 20990201 2421 20990204 01.04.2099 19:12:28 Yes 0
3 20990201 4DOS1 1011 20990201 20990201 1011 20990204 01.04.2099 19:12:42 Yes 0
4 20990201 6111C 6111 20990201 20990201 6111 20990205 01.04.2099 19:12:50 Yes 0
5 20990201 A0102 5711 20990201 20990201 5711 20990205 01.04.2099 19:13:04 Yes 0
6 20990201 B0102 5001 20990201 20990201 5001 20990205 01.04.2099 19:13:17 Yes 0
7 20990201 C0102 5721 20990201 20990201 5721 20990205 01.04.2099 19:13:31 Yes 0
…
* Additional columns to be generated may – among others – include:
FDEBI, LIFNR_LOW, LIFNR_HIGH, LIFNR_SINGLE, LIFNR_RANGE,
KUNNR_LOW, KUNNR_HIGH, KUNNR_SINGLE, KUNNR_RANGE, KURST.
Not available in standard tables.
Ø 14 seconds per transaction
46 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
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2 | Use Cases in Internal Auditing
RPA Bot in Action: Structure Data Bot
4)
Data Generation
Benefits
Working capital improvement
Analysis of selection of wrong parameters as one common root cause
allows to conclude specific actions
Process efficiency increase
Understanding the true coverage by different payment runs, spotting
potential to combine different payment runs and automation of periodic
range-based payment runs
47 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
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2 | Use Cases in Internal Auditing
RPA Bot in Action: Document Screening Bot
4)
Data Generation
Data availability has a positive influence on quality of
data analytics.
Derived principle: Generating larger data sets is crucial.
Game changer: Today lots of documents are available
electronically.
How to generate a larger data set?
How to analyze not only the data set available in the ERP system
but also the electronic documents?
48 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
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2 | Use Cases in Internal Auditing
RPA Bot in Action: Document Screening Bot
4)
Data Generation
Example for illustration of the principle: Details available for incoming invoices
More subjective
Less details More details
Less subjective
In ERP systemFree text fields inputted by accountant
or machine
Field BKTXT Document Header: 25 characters
Field XBLNR Reference Number: 16 characters
Field SGTXT Item Text: 50 characters
In electronic documentsUsually >500 characters
49 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
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2 | Use Cases in Internal Auditing
RPA Bot in Action: Document Screening Bot
4)
Data Generation
Logic of Document Screening Bot
Textor
ResultsElectronic
documents
Text Mining
Input Processing Output
OCR
50 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
Storno
Privat
Scalable to other languages:
…
2 | Use Cases in Internal Auditing
RPA Bot in Action: Document Screening Bot
4)
Data Generation
German English
Spende Donation
Gutschein
Gift Present
Kulanz Goodwill
Vorauszahlung Prepayment
Cancellation
Geschenk
Gift card Voucher Coupon
Private
Wie vereinbart As agreed
Wie besprochen As discussed
Sponsor Sponsor
Sponsoring Sponsoring
Pauschale Lump-sum
Divers Miscellaneous
51 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
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Log 1: Files screened
2 | Use Cases in Internal Auditing
RPA Bot in Action: Document Screening Bot
4)
Data Generation
File
ID
Company
Code
Year Invoice
Number
Match
Type
Text
Length
OCR
Length
Keywords
found
Processed at Processed Error
1 5711 2099 2300006019 TEXT 512 0 0 31.05.2099 04:17:28 Yes 0
2 5711 2099 2300006025 TEXT 287 0 0 31.05.2099 04:17:29 Yes 0
3 5711 2099 2300006026 TEXT 1,278 0 0 31.05.2099 04:17:29 Yes 0
4 5711 2099 2300006027 TEXT 974 0 0 31.05.2099 04:17:29 Yes 0
5 5711 2099 2300006028 TEXT 984 0 1 31.05.2099 04:17:30 Yes 0
6 5711 2099 2300006030 OCR 0 1,664 0 31.05.2099 04:17:33 Yes 0
7 5711 2099 2300006031 TEXT 1,413 0 0 31.05.2099 04:17:33 Yes 0
…
Result ID File ID Keyword ID …
1 5 28
…
Log 2: Screening resultsØ <1 second (Text)
Ø 3 seconds (OCR)
52 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
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Benefits
2 | Use Cases in Internal Auditing
RPA Bot in Action: Document Screening Bot
4)
Data Generation
Increased assurance
Validation of higher number of transactions
Reduced number of false positives obtained from data analytics only
Validation of extended data set
53 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
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53 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
Introduction to Robotic Process Automation1
Use Cases in Internal Auditing2
Key Success Factors3
RPA Roadmap for Your Internal Audit Function4
Agenda
54 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
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3 | Key Success Factors
Overview of 10 Key Success Factors
Start small, grow big.
2
7
6
5
4
3
1
8
Avoid disregarding other automation possibilities.
Consider RPA as one part of your toolbox.
Have access to internal RPA resources.
Enable your team using online RPA training material.
Strive for robust RPA bots during design stage already.
Address privacy restrictions from the beginning.
Be compliant with RPA platform’s terms of use.
9
10
Combine different bots to perform audit work.
Continuously improve your RPA bots.
55 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
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Pilot
Quick
Wins
3 | Key Success Factors
1) Start small, grow big
56 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
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3 | Key Success Factors
2) Avoid disregarding other automation possibilities
Do not automate audit procedures with RPA
for which other affordable software is available or
for which other more advantageous automation possibilities exist.
https://www.capgemini.com/2019/01/the-impact-of-rpa-and-automation-on-technical-debt/
57 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
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3 | Key Success Factors
2) Avoid disregarding other automation possibilities
When assessing the expected return of your RPA bot, be cautious about the
time horizon of benefits. Anticipate that bots may be replaced by standard
software and cognitive automation at one point in time.
https://www.forbes.com/sites/cognitiveworld/2018/12/02/the-big-rpa-bubble/#eea7af68d950
58 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
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3 | Key Success Factors
3) Consider RPA as one part of your toolbox
Easy
automation
including RPA
Cognitive
automation
Next:
59 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
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3 | Key Success Factors
4) Have access to internal RPA resources
https://www.hfsresearch.com/pointsofview/rpas-ticking-time-bomb-enterprises-and-service-providers-must-make-rpa-talent-their-top-priority-to-avoid-disaster
60 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
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3 | Key Success Factors
5) Enable your team using online RPA training material
Online tutorials Community forums
https://www.youtube.com/watch?v=kVtgA_PQ5R4 https://www.youhttps://forum.uipath.com/
– Example – – Example –
61 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
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RPA bots working on
ERP system require
activated GUI scripting
to be robust.GUI scripting deactivated.
Allow ERP system
GUI scripting only
user-specific, not for
all users.(SAP transaction code RZ11
Profile Parameter Maintenance)
3 | Key Success Factors
6) Strive for robust RPA bots during design stage already
62 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
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3 | Key Success Factors
7) Address privacy restrictions from the beginning
Principles of data privacy regulations
including a.o.:
Handling of personal data
Principle of data economy
Use knowhow from applying data analytics.
Do not generate data sets with personal data.
§
Look out for country-specific restrictions in possibility to automate validations.
Example: In Germany, there are restrictions on the automatic validation of distances
travelled by employees («Beschluss Bundesarbeitsgericht 10.12.2013-1 ABR 43/12»).For more details see my publication on https://hub.kpmg.de/cgo-magazin-compliance-2017-2?utm_campaign=CGO%20Magazin&utm_source=AEM.
63 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
3 | Key Success Factors
8) Be compliant with RPA platform’s terms of use
End User License Agreement – Example UiPath
[…]
3. THIRD-PARTY ACCESS
3.1. Outsourcing. Customer may allow its Affiliates, and third-party
contractors to operate or access the UiPath RPA Platform solely on
Customer’s behalf, but only for Customer’s direct business purposes. At
UiPath’s request, Customer will provide a list of the entities having access
to the UiPath RPA Platform in accordance with this provision.
[…]
https://www.uipath.com/legal/terms-of-use
64 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
3 | Key Success Factors
9) Combine different bots to perform audit work
Increased assurance and increased true hits (cash to be returned)
Validation of extended data set and higher number of transactions
Example: Analysis of duplicate payments not yet returned
Attachment
Downloading Bot
Data Analytics
Document
Screening Bot
Text Mining
Continuous Auditing
65 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
You come to the office on Monday morning at 8am.
By then, your RPA bots have already run. The bots ran
in the morning hours and have validated thousands of
transactions of the past week. What a great start into the
new week.
Combining data analytics, text mining, continuous auditing & RPA.
3 | Key Success Factors
9) Combine different bots to perform audit work
66 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
3 | Key Success Factors
10) Continuously improve your RPA bots
https://www.welt.de/img/motor/mobile108346908/5362506367-ci102l-w1024/P90068754.jpg
Going too fast?
Non-compliant?
67 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
3 | Key Success Factors
10) Continuously improve your RPA bots
https://www.welt.de/img/motor/mobile108346908/5362506367-ci102l-w1024/P90068754.jpg
Speed limit only applies
in case the road is wet.
Special signs not known
by that version of head-up display.
False Positive.
Compliant.
68 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
3 | Key Success Factors
10) Continuously improve your RPA bots
Matrix:
Classification accuracy
of the relevance
of a transaction
Analysis
Relevant Not relevant
Truth
Relevant Classified correctly
as relevant
False Negative
By mistake classified
as irrelevant
Not relevantFalse Positive
By mistake classified
as relevant
Classified correctly
as irrelevant
Teach your RPA bots to get more precise over time.
Minimizing False Positives and False Negatives is crucial:
69 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
69 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
Introduction to Robotic Process Automation1
Use Cases in Internal Auditing2
Key Success Factors3
RPA Roadmap for Your Internal Audit Function4
Agenda
70 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
4 | RPA Roadmap for Your Internal Audit Function
RPA Roadmap for Your Internal Audit Function
Identification of
use cases for
RPA
Assessment of
internal RPA
landscape
Proof of concept
Creation of
implementation
plan (incl. tool
selection & user
enablement) Roll-out of
RPA bots aligned
with digital labor
strategy
71 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
4 | RPA Roadmap for Your Internal Audit Function
Polling Question 3
Polling Question 3Please open the conference app to participate.
72 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
4 | RPA Roadmap for Your Internal Audit Function
Polling Question 3
Who is planning to use RPA in internal auditing
going forward?
a. Yes, we already use it and keep the use on the existing level.
b. Yes, we already use it and will extend the use going forward.
c. Yes, we do not use it yet, but we will initiate the use in the next 12 months.
d. Yes, we do not use it yet, but will initiate the use in one year or later.
e. No, I do not see any use case of RPA in internal auditing at our organization.
f. No, I do not have the skills in my team to initiate the use at our organization.
g. No (other reason).
73 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
74 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
I wish you all the best ...
… for deploying digital labor in internal auditing using RPA
Explorative. Successful.Efficient.
Thank you very much for your attention.
Different Use Cases
75 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
Recommended Links
Considerations for assessing and leveraging intelligent automation, in: Internal Audit and Robotic Process Automation, KPMG.
<https://assets.kpmg/content/dam/kpmg/nl/pdf/2018/advisory/internal-audit-and-robotic-process-automation.pdf>
FAQ RPA – Was Sie schon immer über RPA wissen wollten, in: Computerwoche, Milad Safar, November 2018.
<https://www.computerwoche.de/a/was-sie-schon-immer-ueber-rpa-wissen-wollten,3546127>
KI in der Robotic Process Automation (RPA), OnlinePC, January 2019. <https://www.onlinepc.ch/business/kuenstliche-intelligenz/ki-
in-robotic-process-automation-rpa-1667521.html>
Robotic Process Automation (RPA) How does it work, KPMG, October 2017. <https://www.youtube.com/watch?v=xW95yb6J1eU>
Robotic Process Automation for Auditing, in: Journal of Emerging Technologies in Accounting, KC Moffitt, AM Rozario & MA
Vasarhelyi, Spring 2018, Vol. 15, No. 1, pp. 1–10.
RPA Takes Center Stage in 2019, MachineDesign, January 2019. <https://www.machinedesign.com/iot/rpa-takes-center-stage-2019>
RPA: We take a look at UiPath, Blue Prism and Automation Anywhere, InformationAge, February 2019. <https://www.information-
age.com/rpa-uipath-blue-prism-automation-anywhere-123478753/>
UiPath RPA Academy. <https://www.uipath.com/de/rpa-academy>
UiPath Tutorial for Beginners – RPA Tutorial for Beginners, edureka, October 2018.
<https://www.youtube.com/watch?v=kVtgA_PQ5R4>
76 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
76 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
About the Speaker
Name Justin Pawlowski
Position Head of Internal Audit
Employer ALSO Holding AG, Switzerland
E-Mail [email protected]
LinkedIn https://de.linkedin.com/in/
justin-pawlowski-b4914098
Xing https://www.xing.com/profile/
Justin_Pawlowski
77 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
About the Speaker
Publications (1/2)
COSO I
Audit Quarterly COSO I – Überarbeitetes Rahmenwerk für interne Kontrollsysteme, in: Audit Quarterly, Issue III/2013, Bernd Rosenberg/Justin Pawlowski, <https://kipdf.com/queue/institute-
ev_5b3acfbd097c479b7e8b45e3.html> [German]
COSO I: Überarbeitetes Rahmenwerk für interne Kontrollsysteme – Wesentliche Änderungen und Vereinbarkeit mit COSO ERM, in: RiskNET The Risk Management Network Blog, Bernd Rosenberg/Justin
Pawlowski, August 2013, <http://www.risknet.de/themen/artikel/wesentliche-aenderungen-und-vereinbarkeit-mit-coso-erm/8a22bfddca6743c34b31eb17770a70ad/> [German]
Data Analytics & Cash Recovery
Cash Recovery & Protection Audit – Von Massendatenanalysen profitieren, in: KPMG Assurance Magazin, Issue 1, Bernd Rosenberg/Justin Pawlowski, November 2013. [German]
Datenanalysen in der Internen Revision – Datenanalysen bieten noch ungenutztes Potenzial, in: KPMG Assurance Magazin, Issue 6, Justin Pawlowski, November 2015,
<https://docplayer.org/storage/26/8275510/1558303804/KjehO7HzKW9q2wwmeECw0g/8275510.pdf> [German]
Cash Recovery: Geld zurück durch Massendatenanalyse, in: KPMG Klardenker, Justin Pawlowski (author was changed from Justin Pawlowski to Albina Kladusak once I left the company in 2018), October
2017, <https://klardenker.kpmg.de/cash-recovery-geld-zurueck-durch-massendatenanalyse/> [German]
Process Mining
Process Mining in der Internen Revision, in: DIIR IT-Tagung 2017, Justin Pawlowski, June 2017, Duesseldorf/Germany. [German]
Process Mining Visualization – Seeing Process Inefficiencies, Control Weaknesses and Control Gaps, in: The IIA International Conference 2017, Justin Pawlowski, July 2017, Sydney/Australia. [English]
Process Mining – ein ergänzendes Instrument für die Werkzeugkiste der Revisionsfunktion, in: Haub & Partner Blog, Justin Pawlowski, September 2018, <https://www.haub-seminare.de/blog/process-
mining-interne-revision/> [German]
Mining for Process Gold – An addition to the internal audit toolkit can give practitioners a clear and objective picture of business processes, in: Internal Auditor Magazine Blog, Justin Pawlowski,
November 2018, <https://iaonline.theiia.org/2018/Pages/Mining-for-Process-Gold.aspx> [English]
Robotic Process Automation
Interne Revision und Digitalisierung – So sorgt Automatisierung für Stahlkraft, in: CGO – Das Governance Magazin, Justin Pawlowski, Issue 2, March 2018, pp. 22-27. <https://hub.kpmg.de/cgo-magazin-
compliance-2017-2?utm_campaign=CGO%20Magazin&utm_source=AEM> [German]
Sexy but risky – Der erfolgreiche Einsatz von RPA ist kein Selbstläufer, in: Management Circle Digitalisierungs-Blog, Justin Pawlowski, May 2019, <https://www.management-circle.de/blog/erfolgreicher-
einsatz-rpa/> [German]
78 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
About the Speaker
Publications (2/2)
Robotic Process Automation
Sexy but risky – Der erfolgreiche Einsatz von RPA
ist kein Selbstläufer, in: Management Circle
Digitalisierungs-Blog, Justin Pawlowski, May 2019,
<https://www.management-
circle.de/blog/erfolgreicher-einsatz-rpa/>
Interne Revision und Digitalisierung – So sorgt
Automatisierung für Stahlkraft, in: CGO – Das
Governance Magazin, Justin Pawlowski, Issue 2,
March 2018, pp. 22-27. <https://hub.kpmg.de/cgo-
magazin-compliance-2017-2?utm_campaign=
CGO%20Magazin&utm_source=AEM> [German]
Sexy but risky – The successful use of RPA requires
to avoid making these simple mistakes
Internal audit and digitalization – The power of
automation
79 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
About the Speaker
Special Thanks
My special thanks go to
Shpetim Xhemaili, Christian Stauß and Jan Grüne for
having supported me in driving the topic of using RPA in
internal auditing back at KPMG Germany.
ALSO Holding AG for giving me the opportunity and
platform to bring in my ideas for establishing a modern
internal audit function.
IBM and KPMG for having been great employers with
excellent colleagues before joining ALSO in 2018.
The IIA for giving me the possibility to share my personal
view on internal audit matters at this conference, in the
IT Guidance Committee and in the German Chapter.
80 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
You look for a new job challenge?
Join my team in one of our European locations.
Job Description «Digital Auditor»
Design and create rule-based data analytics
focusing on adherence with internal guidelines,
effectiveness of internal controls, process efficiency and
compliance.
Perform audits of digital business processes
using Process Mining.
Automate audit procedures by means of
Robotic Process Automation (RPA) and
Machine Learning (ML).
Prepare and conduct audits across Europe
using technology-based auditing techniques.
Independently coordinate audits results and
recommendations with management.
Please send your application to: [email protected].
81 Deploying Digital Labor in Internal Auditing by Introducing and Utilizing Robotic Process Automation
Justin Pawlowski
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