Process mining for internal audit
How a world leader in lighting moved internal control testing from sampling to the full population, on data that was already in Celonis.
Sampling only shows part of the picture.
With the increased level of digitalisation and use of IT systems, company data volumes have grown enormously. Traditional audit procedures such as sampling have their limits: they give a partial view of exceptions, with the emphasis on high-risk, high-materiality cases.
Using process mining, internal control teams can lean on full process transparency for auditing purposes instead — every case, not a selection.
Hundreds of controls, all different.
The client is a world leader in lighting with a strong focus on improving risk management and enhancing audit efficiency. There are hundreds of controls to be checked, varying in potential business impact and in how far they are automated.
The main question: is there a more effective and efficient way to perform auditing for internal control procedures? DataLane was chosen for its extensive experience with data and analytics for internal audits using process mining.
Five controls, checked continuously.
DataLane’s PAC — Process Adherence Checker — was the best fit to achieve first results quickly and show clear proof of value. PAC is an AI-powered tool that analyses a process against pre-specified controls.
A small set of five internal controls was chosen for the proof of value. Each was reviewed and improved using process mining, then translated into technical terms and ingested into PAC for audit.
No new data integration pipeline was needed: DataLane used the data already available in the client’s Celonis EMS to run the analysis and show the outcome.
- Client
- World leader in lighting
- Team
- Internal control and audit
- Tool
- PAC — Process Adherence Checker
- Scope
- Five controls, proof of value
What made it hard to fix
- Hundreds of controls, each with its own impact
- Sampling leaves most of the population untested
- Proof of value had to come quickly
What it delivered — and what made it stick.
Business value
- 100% transparency of every instance of non-compliance for the implemented controls.
- The auditing team sees results based on the whole population.
- Smarter sampling, informed by the test procedures PAC has already performed.
- Less manual work, so auditors can focus on what actually goes wrong in the process.
Adoption
- Testing procedures run automatically, constantly listening to the data.
- Automated alerts and proactive warnings move the team from a “did-do” to a “can-do” approach.
- Built on the existing Celonis EMS, so there is no second platform to maintain.
- Close collaboration with the business team turned findings into systemic changes.
Recognise this in your own process?
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