Page 135 - AAA Integrated Workbook STUDENT S18-J19

Evidence

Benefits of data analytics

 Audit quality should increase as sampling risk is reduced or even eliminated as
complete data sets are subject to audit.

 As audit quality increases the auditor's liability risk is reduced.

 Audit procedures can be performed more quickly and to a higher standard
providing more time to analyse and interpret the results.

 Audit procedures can be carried out on a continuous basis rather than being
focused at the year-end.

 Reporting to the client and users will be more timely as the work may be
completed within weeks rather than months after the year-end.

 May result in more frequent interaction between the auditor and client over the
course of the year.

Illustrations and further practice

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