Gartner’s annual “Audit Hot Spots” report is based on interviews and surveys of their global network of clients and identifies the most significant risks facing executives, boards, and audit committees in the year ahead. The report lists the 2020 top risks, compares them to the 2019 report, and includes key risk indicators and questions management should ask for each. It also includes an evaluation of the survey respondents’ confidence in the audit department’s ability to provide assurance over each risk, and their plans to cover the risk in their audit activities in the next 12-18 months.
Top risk area: Data governance
Businesses continue to generate and retain enormous amounts of data. Data is essential for strategic decision-making, but it must be managed and protected to avoid ever-increasing risks.
Those surveyed recognize the need for effective utilization of data for competitive advantage, driving innovation, allocation of resources, and expense reduction. But more than half of their organizations do not have a formal data governance framework and a dedicated budget for data management.
A formal data governance framework should include how data is collected,…
