chapter 7
notable item
an item that stands out from the population being analyzed
4 teqniques to identify notable items that are at a high risk of being materially misstated
clustering, matching, statistical analysis (regression), visualization
regression analysis
is a statistical process that involves estimating a prediction equation that expresses an item of interest in terms of other data fields
visualization
is the representation of a data set, or key information, as a chart or another image. Computers do not need visualizations
matching
process whereby the auditor uses audit data analytics to search for key characteristics that may exist in several different databases
clustering
the process of discovering groups
Audit Data Analytics
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 planning and performing the audit.