Audit Data Analytics

Question 1

Audit Data Analytics Definition:

Answer 1

the science and art of discovering and analyzing patterns, identifying anomalies, and extracting other useful information in data underlying or related to the subject matter of an audit through analysis, modeling, and visualization for the purpose of planning or performing the audit”

Question 2

Purposes of Audit Data Analytics

Answer 2

may be used for multiple purposes, including to perform (1) risk assessment, (2) tests of control, (3) substantive procedures, or (4) evaluating conclusions.

Question 3

Visualization

Answer 3

the use of various types of graphics (for example, charts, scatter diagrams, trend lines), tables, or combinations thereof in formats such as dashboards.”

Question 4

An Audit Data Analytic performed to obtain an understanding of the entity and its environment would best be described as a:

Answer 4

Risk Assessment Procedure

**Risk assessment procedures are primarily associated with obtaining an understanding of the entity and its environment for purposes of assessing the risks of material misstatement.

Question 5

Data clarity and relatedness

Answer 5

involve whether the data has the elements requested and needed for the objective.

Question 6

In preparing the data to be used in an audit data analytic, the process of cleaning the data so that it can be analyzed is referred to as:

Answer 6

Data transformation