chapter 7

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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.


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