Prepare a memo to management that explains how and why data analysis is used in the...

70.2K

Verified Solution

Question

Finance

Prepare a memo to management that explains how and whydata analysis is used in the various stages of the audit process,including the risk assessment stage, the determination of samplingmethod and audit universe, the substantive procedures stage, andthe end of the audit.
Specifically, the following critical elements must beaddressed:
1. Data Analysis: Risk Assessment Stage: Explain howand why data analysis is used at the risk assessment stage of theaudit process.
2. Data Analysis: Determination of sampling method andaudit universe: Explain how data analysis is used in thedetermination of sampling method and audit universe.
3. Data Analysis: Substantive procedures stage:Explain how and why data analysis is used at the substantiveprocedures stage of the audit.
4. Data Analysis: End of audit: Explain how and whydata analysis is used near the end of an audit.

Answer & Explanation Solved by verified expert

3.6 Ratings (560 Votes)

Risk Assessment Stage Function of audit is to check if there is any misrepresentation of facts or not Risk Assessment stage identifies the companys environment including the internal operating conditions and the external market scenario Following data steps are considered when carrying out a risk assessment External environment Checking if the company is governed by any regulatory body market presence of the company Clients and the footprint of the company business strategy of the company how does it generate value for the shareholders Internal Environment Monitoring the companys management quality interviewing the employees See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member