Episode 9: Host Jim Ray interviews Dr. David Collins Professor of Accounting at Bellarmine’s Rubel School of Business. They discuss the creation of 2 new certificate programs (a Certificate in Accounting Analytics and a
Certificate in Auditing Analytics). They also spend time exploring the topic of analytics and the shifting role of accounting professionals in business.
Dr. Collins has been at Bellarmine since 1994. He’s served in many capacities for the University. He’s thoroughly enjoyed his time here. He mostly teaches accounting at the undergraduate and MBA levels. For the MBAs, he also focuses
on various quantitative subjects, including analytics.
The Dean of the Rubel School of Business is Dr. Natasha Munshi.
She has been a champion of the Executive Education Series and various new programs. You do not have to be a Bellarmine alumnus to participate in these programs.
Certificate in Accounting Analytics
This is a non-degree program focusing on the “tool box” for professionals who use quantitative skills to perform analytics at a higher level. This includes advanced Excel, Power BI, Tableau, Python R and others. The focus of this program is
to apply these tools to the accounting function across business.
This certificate program provides a terrific opportunity for accountants and CPAs who have been practicing for some time and may have not had exposure to these analytical programs, in the past.
Certificate in Auditing Analytics
This is a different focus. Auditing has evolved and is now more systems- and risk assurance-oriented. Auditing looks at the process by which the data was collected and utilized. It’s less about data testing and more about process testing.
This program explores embedded auditing modules within company programs, continuous auditing programs among others.
The evolution of auditing represents a significant shift. Dr. Collins comments on how samples of a data set used to be audited, based on time and or bandwidth limits. Today, 100% of the data set can be audited using new approaches and tools. It’s
about system-integrity.
Dr. Collins’ Presentation for the KYCPA Conference
The Kentucky Society of CPAs has an annual accounting and auditing conference for its members. In May 2021, David presented the topic, “The Importance of Accounting Analytics.”
Analytics is the application of quantitative techniques for problem-solving and decision making. Accounting has been doing this for over 10,000 years. The change today, is in Big Data. It’s how we’re collecting information and using
it for a particular purpose. It’s a massive change in how accountants use data.
The 4 Vs of Big Data
This is how one can explain the effect of big data on firms today. There’s an immense amount of data available. The 4 Vs help to put that data into perspective. Let’s explain them.
Veracity – The representational effect of data; it’s truthfulness. It’s the confidence that the data means what it says it means.
Variety – We’re getting data from everywhere. Someone is collecting it. Accountants are very comfortable with financial data, but now, they need to be thinking about other types of data and how it’s used in analytics.
Velocity – This refers to the speed at which data is collected. The amount of data being collected is expected to double by 2025. The value of analytics is that it can help organizations to understand what this vast amount of data is
actually indicating and how to make it meaningful in decision-making.
Volume – This is the size of the available data. It keeps building. Dr. Collins provides an example of bourbon barrels to illustrate the volume of data that is being collected and its growth rate.
Analytical Skills Organizations Should Develop
Refer back to the “toolbox” Dr. Collins initially referenced (Advanced Excel, Power BI, Tableau, Python R, SQL-coding skills, etc.). Accounting professionals are the data people. Being able to understand the new auditing tools and understanding
the complex issues businesses are facing is vital.
Processing the data is one aspect, but really understanding which numbers need to be processed is a different matter. Understanding those intricate relationships will lead to valuable insights.
4 Different Types of Data Analytics
- Descriptive – “What happened?” This is the traditional domain of accounting.
- Diagnostic – “Why did it happen?” Accountants can review expenses to determine why a certain line item increased or decreased. Accounting professionals are now going to move beyond diagnostic-level thinking.
- Predictive – “What will happen if we do X?” Accountants are familiar with this as it relates to capital budgeting. Big data is packed with many more predictive elements to be understood and utilized.
- Prescriptive – “How do we make it happen?” This may present the biggest paradigm shift for the accounting industry. Accounting professionals should join the decision-making process, along with marketing and other
functions.
Dr. Collins Discusses Blockchain
Blockchain is typically thought of in terms of Bitcoin, but the term actually refers to a distributed database structure linked to the previous piece of data. Theoretically, it should be unchangeable. From a business point of view, blockchain
creates a very detailed log of every transaction in various processes. Now, everyone can see what happened all along the way. From an auditing standpoint, blockchain enables triple-entry accounting.
Blockchain itself is a continuous audited function. This can “true-up” the data, thus making it more reliable. It’s easily accessible and can be viewed in customized reporting formats.
To contact Dr. David Collins, his office phone number is (502) 272-8248 and you can learn more about him at: https://www.bellarmine.edu/rubel-school-of-business/undergraduate/bachelor-of-arts-in-accounting/dcollins/
Disclaimers:
The views and opinions expressed during the Bellarmine on Business podcast do not necessarily reflect those of Bellarmine University, its administration or the faculty at large. The episodes are designed to be insightful, thought-provoking and entertaining.
THE MONTHLY FORECAST:
Upcoming Events
June – The launch of the Coffee with the Pros Podcast. This is another Bellarmine podcast getting ready to launch. Jorge Pazmiño, Lauren Coffee and Jaqueline McNatt are involved in this exciting new resource. This
will be a Q&A format with former Bellarmine athletes who will provide career advice to current BU student athletes.
8/19/21 – Dean’s Executive Speaker Series – Natalia Bishop Founder and CEO of Level Up will discuss her background and provide advice. Click here for more information.
Bellarmine Career Development Service – This service is open to both Bellarmine students and alumni. Is it time to make a change? Click here to contact learn how Bellarmine can help.
Want to Listen to Additional Episodes?
You can find additional episodes on the Rubel School of Business Podcast page of the Bellarmine website, various Bellarmine social media pages, Apple Podcasts, Google Podcasts, Spotify, Amazon Music, Audible, Libsyn, Podchaser and many other podcast directories. We encourage you to subscribe to our podcast so you don’t
miss an episode.
Interested in Developing a Podcast for Your Business or Organization?
This podcast was produced by Jim Ray Consulting Services. Jim Ray, host of the Bellarmine on Business podcast, can help you with the concept development, implementation,
production and distribution of your own podcast. For more information, visit:
https://jimrayconsultingservices.com/podcastproduction.