How can an internal auditor start using Python for exception testing?

author: AcadiFi Team

Answer:

Start with one narrow audit question. For example, test whether purchases above an approval threshold were approved before payment. Then identify the source data, required fields, period, population, and control criteria before writing or running the script.

The first procedure should not be "import the file." It should be validating that the file is complete and accurate enough for the audit objective. Reconcile row counts or totals to an independent report, confirm field definitions, and document any exclusions.

Once the data is reliable enough, Python can apply the exception rule consistently. The auditor still needs to investigate exceptions, document false positives, and conclude based on evidence rather than code output alone.