Accounting Q&A · Auditing · Topic 7
Practise audit analytics, data integrity and IT controls. Try each answer before revealing it.
Worked example
An analytics tool flags duplicate supplier invoices. Match supplier, invoice number, date and payment record. Follow up confirmed exceptions and assess control implications.
Core concepts
1. What should you know about cAATs?
Computer-assisted methods for obtaining or analysing audit evidence.
2. What should you know about audit data analytics?
Examination of data to identify patterns, exceptions or evidence relevant to an audit objective.
3. What should you know about general IT controls?
Controls supporting reliable operation of systems, including access and change management.
4. What should you know about application control?
A control embedded in a process or application, such as blocking duplicate invoices.
5. What should you know about data lineage?
The origin and transformations of information used in a test.
6. What should you know about population completeness?
Whether the extract includes all items relevant to the intended procedure.
7. What should you know about join key?
A field used to link datasets, such as a transaction ID.
8. What should you know about false positive?
A flagged item that does not represent the problem being investigated.
9. What should you know about exception log?
A record of flagged items, investigation and resolution.
10. What should you know about reproducibility?
Ability to rerun a procedure using documented data, parameters and logic.
Case 1
An analytics tool flags duplicate supplier invoices.
11. Which audit concept is central here?
Duplicate-payment testing.
12. What is the main objective?
Distinguish genuine duplicates from valid repeated amounts.
13. What evidence or procedure would you use?
Match supplier, invoice number, date and payment record.
14. What limitation should you consider?
Identical amounts are a lead rather than proof.
15. What should happen next?
Follow up confirmed exceptions and assess control implications.
Case 2
A sales export excludes transactions posted on the final day.
16. Which audit concept is central here?
Data completeness.
17. What is the main objective?
Establish that the population covers the reporting period.
18. What evidence or procedure would you use?
Reconcile counts and totals to source-system records.
19. What limitation should you consider?
Running a test on all extracted rows does not cover omitted rows.
20. What should happen next?
Correct and validate the extract before rerunning.
Case 3
A developer has production access and can approve changes.
21. Which audit concept is central here?
Access and change management.
22. What is the main objective?
Assess unauthorised changes to financial processing.
23. What evidence or procedure would you use?
Inspect role assignments, change approvals and logs.
24. What limitation should you consider?
A clean sample does not eliminate the access risk.
25. What should happen next?
Evaluate compensating review and adjust audit procedures.
Professional standards reference. For statutory duties, confirm the rules in the relevant jurisdiction.