Internal Auditing and Process Mining: Opportunities and Challenges

Abstract

In this paper we discuss the value that process mining of event logs can provide to internal auditors. Process mining aims to extract knowledge, a process model, from real transactions as they are recorded by an information system. These transactions are stored in a so called event log. The most important feature that makes this such a unique and potentially invaluable resource for auditing is that additional data is recorded automatically and independently of the person whose behavior is the subject of the audit. In other words, an event log helps achieve the classic audit principle of "four eyes". Until recently, the information contained in event logs was rarely used by auditors. In this paper is considered how process mining can add value to auditing, perhaps even to fundamentally transform it. A case study is executed and presented throughout the paper.