The Pareto Principle

Let’s do an Audit with Pareto Principle.

Nowadays, time is conceived as a limited resource and, insofar as it is managed efficiently, it can become an investment rather than an expense, resulting in the generation of returns and tangible value.

The Pareto Principle of the economist and psychologist Vilfredo Pareto, describes the 80/20 relationship, stating that 80% of the consequences originate from 20% of the causes. If we apply this in the professional field of auditing, we could argue that 80% of the expected results can be achieved with 20% of the effort applied.
This prompted us to develop strategies at ECOVIS Colombia to implement business analysis models that allow us to carry out efficient audits in order to meet the objectives under a systematic, reasonable and comprehensive approach.

Our audit model contemplates the following items:

1. Design: It has to do with the development and implementation phase of technological models and applications, which allows us to automate processes to increase productivity.
2. Identify: With the help of technological resources, in this phase we focus on establishing the most fruitful tasks for each audit assignment and dedicating ourselves to its execution as a priority.
3. Measure: Under the principle that “what is not measured is not administered”, we understand that there must be a direct relationship between volume and value, that is, we establish the volume of tests based directly on the value that they we are generated to satisfy the expected objectives within our scope as auditors.
4. Professional attitude: At Ecovis we understand that the models alone could not have the expected success “even the best airplane needs a pilot”, therefore we develop activities aimed at cultivating in our human resources a posture of skepticism, judgment and professional ethics impeccable.
5. Innovate: How can we improve what we think is unbeatable? At Ecovis we are committed to using our knowledge to create opportunities. In any audit process, we must ask ourselves if what is always done the same could be done in a different, more efficient way. , better results, adding value to our clients.

We are in the era of automation, where technology is occupying an important space in our work, we must turn this dormant threat into an advantageous opportunity.