Page 134 - AAA Integrated Workbook STUDENT S18-J19

Chapter 93 4

2.3 Data analytics

Data analytics is the science of examining large data sets (big data)
with the purpose of drawing conclusions about that information.

Data analytics are a current development in the auditing profession.

This audit methodology is increasing in use for larger audit firms and smaller firms
are expected to follow.

Data analytics are seen as a way of increasing audit quality.

Features of data analytics

 Allows the auditor to manipulate 100% of the data in a population quickly.

 Can be used throughout the audit to help identify risks, test the controls and as
part of substantive procedures.

 As with analytical procedures in general, the quality of data analytics depends
on the reliability of the underlying data used.

 Can incorporate a wider range of data. For example data can be extracted and
analysed from social media, public sector data, industry data and economic
data.

 Can be seen as a more comprehensive version of computer assisted audit
techniques.

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