Data analytics

  1. How do nature, extent, and timing of audit procedures help us identify when to apply Data Analytics to the
    audit process?
  2. An example of prescriptive analytics is when an action is recommended based on previously observed actions. For example, an analysis might help determine procedures to follow when new accounts are opened for inactive customers, such as requiring supervisor approval. How might this help address a potential audit issue?
  3. One of the benefits of Data Analytics is the ability to see and test the full population. In that case, why is a sampling (even monetary sampling) still used, and how is it useful?
    4.. What are some patterns that could be found using diagnostic analysis? Between which types of variables?
  4. In a certain company, one accountant records most of the adjusting journal entries at the end of the month.
    What type of analysis could be used to identify that this happens and the cumulative size of the transactions that the one accountant records? Is this a problem or if not, when would it be?
  5. How could artificial intelligence be used to help with the evaluation of the estimate for the allowance for doubtful accounts? Could past allowances be tested for their predictive ability that might be able to help set
    allowances in the current period?

Sample Solution