Event Details |
Auditing Analytical Models |
October 8, 2019 |
1:00 pm - 2:00 pm |
Member Only Webinar - |
Virtual - ON24 |
Virtual |
Event Description |
An analytical model is a
mathematical equation that takes in data and produces a calculation such as a
score, ranking, classification, or prediction. It is a very specific set of
instructions for analyzing data to deliver a particular kind of result — behavior,
decision, action, or cause — to support a business process.
Today's organizations have billions of dollars riding on the accuracy and performance integrity of analytical models. With model performance becoming a strategic enabler and a potential source of liability, organizations need to manage the risks associated with analytics.
To manage these risks effectively and move beyond simple financial model or spreadsheet auditing, organizations need a system of controls around analytic model development. These analytics controls provide checks and balances around model selection, validation, implementation, and maintenance.
Although many auditors may be unfamiliar with analytical models, machine learning, and AI, the fundamentals of internal auditing remain the same. As with all new technologies and processes that organizations have embraced, internal auditors have a responsibility to learn how analytic models can be useful in their work and adapt their methods to serve their stakeholders.
Allan Sammy, M.Sc., CPA, CIA is the Director, Data Science and Audit Analytics at Canada Post. He works with Internal Audit clients across the corporation to provide assurance and advisory services relating to advanced analytics and data modeling and leads the development of big data capabilities and utilization as well as the coordination of IA department analytic initiatives. He has a Master’s degree in Predictive Analytics from Northwestern and over 20 years of experience in Risk Management, Investigations and Internal Audit. Prior to joining Canada Post he was Director, Fraud Risk Management at the Ontario Lottery and Gaming Corporation and the Head of Internal Audit at the Canadian Air Transport Security Authority (CATSA). He has published articles on Auditing Analytic Models (IA Magazine) and using Artificial Intelligence and Neural Network Models for Fraud Detection (Certified Fraud Examiners (CFE) magazine online).