Unlocking value: How audit and data analytics strengthen business confidence

For many organisations, the concept of data analytics in audit evokes images of dashboards or Excel charts. However, today, analytics is truly enabling auditors to understand the business far more holistically.

As Britney Barnett, Audit Director, explains, data has always existed – what’s changed is how much more insight we can now extract from it: “We can take a full picture of what is happening, and look at trends, outliers and anomalies, whether that’s transactional, month-by-month or by jurisdiction.”

This ability to view entire populations, rather than narrow samples, allows auditors to identify what truly matters and helps businesses understand not only whether something happened, but why.

The past five years have seen significant change in the audit landscape. With regulatory enhancements such as ISA 315 and increasingly complex systems, the demand for a deeper understanding of client environments has intensified.

As Chetan Mistry, Audit Partner, asks: “Do auditors understand their clients well enough?  Are client risk assessments sufficiently advanced? And do auditors understand their client’s business processes and how they operate with adequate detail?”

This shift in focus, supported by improved data availability and sophisticated tools, allows auditors to join the dots between processes, controls and outcomes in a way that was not possible previously.

One of the most meaningful advancements is the move towards more targeted, risk-centric testing. This results not only in greater audit efficiency, but also in a far richer set of insights for clients.

Mistry summarises this evolution powerfully: “We’re moving from randomised sampling to a more focused approach – testing what is risky, what is anomalous and what is out of the ordinary.”

This approach helps auditors surface exceptions, strengthen assurance and highlight emerging issues earlier, ultimately raising audit quality

The ability to gather data directly from secure digital sources is also reshaping the audit process. Instead of relying on submitted PDF statements or paper extracts, auditors can increasingly obtain verified data straight from systems, such as through open‑banking APIs.

As Mistry explains: “If you can get the data securely from source, verification checks become far easier. This is because there is limited ability to alter that source data.”

This not only enhances audit reliability but supports better internal reporting and operational decision‑making for the client.

High‑quality analytics relies on high‑quality data, however. And improving data maturity is increasingly becoming a shared endeavour between auditors and clients. Through repeated interactions over multiple years, both sides refine systems, processes and data flows.

As Barnett highlights: “The quality of the data and the quality of the processes on the client side will determine the quality of analytics and quality of insight.”

This two‑way relationship ensures that each audit cycle not only delivers assurance but builds stronger internal capabilities for clients.

Analytics is also helping to connect client strategy to data‑driven evidence.

In one example, an S&W client sought to accelerate cash collections by adapting their billing processes. Using analytics, our audit team could demonstrate the measurable impact of the change – supporting both management’s commercial strategy and the audit team’s going concern assessment.

This illustrates how analytics can validate strategic decisions, while strengthening audit evidence and creating value across both assurance and commercial spheres.

Looking ahead, analytics is evolving towards intelligent models that reflect the mindset of experienced auditors. Mistry articulates this future direction clearly: “How can you build an inquisitive auditor into a model that knows how we work?”

This is not about replacing judgement but enhancing it. Automated routines can highlight the unusual; auditors can then apply professional scepticism to understand the story behind it.

Another area of growth is the integration of audit with the wider expertise available across S&W – from data specialists to cyber security and risk assurance teams. These collaborations provide richer insight, helping clients address systems, processes and controls more holistically.

Equally, insights from audit often benefit consulting engagements, enabling a virtuous circle of expertise that enhances value on both sides.

When supported by high‑quality data and modern analytical tools, an audit becomes more than just assurance. It becomes a source of:

• Sharper risk identification
• Deeper commercial insight
• Improved control environments
• Stronger evidence for business decisions
• Ongoing system and process improvements

Analytics strengthen both the audit process and the client relationship, enabling teams to work with greater transparency, clarity and shared understanding.

To explore how a data‑driven audit could support your organisation’s risk management, confidence and decision‑making, please get in touch with our audit team.