Appendix B

In documenting the ADA, the Guide suggests the workpapers should include ______.

-description of techniques used -final tables/graphs produced -general and specific objective of the ADA

The final step in the ADA process requires the auditor to ______.

-determine if the original objective has been met -document the process

Once the ADA has been planned, the auditor must access and prepare the data which is often discussed as the _____, _____, and load process of data analytics.

-extract -transform

The step of preparing the data for analysis ______.

-may show the auditor that the data is not reliable -can be complicated

When considering the audited entity, its risk and what the auditor hopes the ADA will achieve, the Guide suggests the auditor determine the ______.

-overall purpose of the ADA -financial statement items and nature timing and extent of the population to which ADA will be applied

Auditors are required to perform analytical procedures when ______.

-performing risk assessment -concluding the audit

Because data used in ADA is not always "clean" and often comes from within the entity's system, ensuring the _____ and _____ of the data used in the ADA is paramount..

-reliability -relevance

How the ADA will be performed depends on the ______

-technique used -purpose of the ADA

The science and art of using analysis, modeling and visualization to discover and analyze patterns, anomalies, and other information for the purpose of planning and performing an audit is the definition of audit _____ _____.

data analytics

If the ADA is to serve as a test of control, the testing of the data's reliability will need to be ______ persuasive as reliability for a risk assessment procedure.

more

The extent to which data relates to the purpose of the ADA is the _____ of the data.

relevance

One of the most difficult parts of the ADA process is considering and establishing the data's ______.

reliability

The data's nature, source, format, timing, extent, and level of aggregation are all items that impact data _____.

reliability

Advances in technology allow large datasets to be analyzed by affordable, user-friendly data mining software such as ______.

-Tableau -Hadoop -SAST

Substantive analytical procedures ______.

-can be an efficient source of audit evidence -are similar in many respects to ADAs

Sometimes data, especially at smaller entities with less advanced information systems, require significant preparation, which is called _____, scrubbing, or _____.

-cleaning -tranforming

The Guide suggests auditors consider many factors when planning the ADA. Which of these does NOT relate to the auditors consideration of the audited entity, it's what and what the auditor hopes the ADA will achieve?

Determine the data population to be analyzed or tested using the ADA.

Many companies have increased their ability to analyze their own data using data analytics due to the passage of ______.

Sarbanes-Oxley (SOX)

True or false: Many companies have increased their ability to analyze their own data using data analytics due to the passage of Sarbanes-Oxley (SOX).

True Reason: The focus on internal controls required by SOX has led to many companies their IT systems and adopting ERP systems that have led to these increased abilities.

As part of risk assessment, auditing standards require that auditors perform _____ procedures during the planning phase of the audit.

analytical

Performing a year-over-year general ledger fluctuation analysis is a common preliminary _____ _____ that can be enhanced through ADA.

analytical procedure

The process of obtaining, cleaning, transforming, and then using data to identify and communicate meaningful patterns, trends, outliers, and information in support of decision making is data _____.

analytics

The process of using technology to turn data into information is data _____.

analytics

Mastering technology skills required for audit data analytics is __.

being emphasized for new audit associates

ADA's ______ be used as a test of detail.

can also

More data was created between 2013 and 2015 than in the ______.

entire previous history of mankind

Obtaining the data from the entity's ERP or another data source is the _____ portion of ETL.

extract

When performing an ADA ______.

it is often necessary to refine the data, technique or both

When using ADA as a test of detail ______.

many notable items that diverge from expectations are likely

ADAs can be useful in performing _____ analytical procedures.

preliminary and final

While not required by GAAS, _____ _____procedures can be an efficient source of audit evidence and are similar in many respects to ADAs.

substantive analytical