Audit Data Analytics M10

Question 1

What is the best way to evaluate the reliability of the data obtained from the third party?

Answer 1

• SOC 1® reports contain assurance from the service provider’s management that controls are in place around their processes.

Question 2

What are the different visualization techniques to present data?

Answer 2

• Pie Chart: Demonstrate proportional information.
• Bar Chart: Demonstrate comparative information
• Scatter Chart: graphically show the relationship among variables.
• Line Chart: Demonstrate trend analysis.
• Bullet charts: are best utilized for variance analysis

Question 3

How does visualizations enhance audit data communications?

Answer 3

• Graph must start the y-axis at zero to ensure that differences in values are truly representative.
• Data visualizations are utilized for both analyzing data and communicating findings.
• Visualizations can lead to greater insights and understanding of data and outcomes of data analytics.
• The type of visualization employed can greatly change how the data is interpreted.

Question 4

What are the different data types?

Answer 4

-Structured data is easily searchable

• Spreadsheets
• Data marts

-Unstructured Data is not easily searchable its text, videos, photos, social media, etc.

Question 5

What are the Data Analytics?

Answer 5

1. Descriptive analytics describe what happened within the data.
2. Diagnostic analytics explain why something happened.
3. Predictive analytics provide expected or predicted outcomes based on historical data.
4. Prescriptive analytics prescribe or recommend actions to be taken based on advanced analytics to reach a desired goal.

Question 6

What are the benefits of ADA?

Answer 6

1. Enhanced fraud detection.
2. Expanded audit coverage through testing of full populations.
3. Insights gained from evaluating metadata.

Question 7

What are the reasons to use ADA?

Answer 7

• To perform a risk assessment procedures.
• To assist in forming an overall conclusion.
• Allows the auditor to gain comfort that no material misstatements went unidentified.

Question 8

What is a SOC 1 Report?

Answer 8

SOC 1 reports provide assurance from the service provider’s management that controls are in place around their processes.