Audit Data Analytics (1)

Question 1

What is a big data?

Answer 1

A broad term for the larger, more complex datasets that can be held by modern computers

Question 2

What is data analytics?

Answer 2

Examination of data to try to identify patterms, trends or correlations

Question 3

What happens as the quantity of data increased?

Answer 3

It has become more and more necessary to evolve ways of processing and making sense of it

Question 4

What does big data refer to?

Answer 4

Qualitative shift in the amount of data that is available in comparison with the past

Question 5

WHat are current ISAs based on?

Answer 5

A risk management approach to audit, where auditor does not test 100% of an entity’s transactions, but instead focuses audit work on riskiest areas

Question 6

What does data analytics offer?

Answer 6

A chance of examining all of an entity’s data

Question 7

What does the use of data analytics software initially involve?

Answer 7

Significant costs on part of the auditor and extensive training

Question 8

What can data analytics offer the auditor?

Answer 8

The ability to examine all of an entity’s data and test entire population

Question 9

What does this improve?

Answer 9

Audit efficiency and audit quality

Question 10

What does large quantities of data being interrogated relatively quickly allow auditors to focus on?

Answer 10

The riskiest areas and thus obtain evidence to reduce audit risk