Data visualization impact on internal audit and decision-making processes

Savrin Anton Yurievich

The purpose of the research was to examine the impact of big data analysis and its presentation for decision making in regards of providing recommendations based on the results of internal audit. The article focuses on how data visualization influences managers and their acceptance of internal auditors' recommendations. As research methods, methods of a theoretical level were used (i.e. search and consolidation of studies on similar topics). The initial assumption was that graphical visualization for any type of information makes management more recipient to the results of data analysis. The article described several cases (management accounting, investors’ decisions and audit decisions) of using visualization tools and its impact on the decisions of managers. The article analyzed the cases of using visualization tools and their impact on the decisions of managers based on management accounting data, on the decisions of investors and external auditors. The research showed that in some cases the use of visualization tools (supported with the analysis of the non-financial block of big data) could have a convincing impact on management and persuade management to accept the recommendations provided by the internal audit service. Meanwhile in some cases, the prevailing influence of the tabular visualization format over graphic methods was revealed. As a result, a hypothesis was obtained that will require empirical research and testing as part of further research. The theoretical results of the research could be applied by internal auditors who analyze big data (including non-financial data) when developing a methodology for presenting the results of an internal audit.

Keywords:internal audit; data visualization; big data; accounting; management accounting.