CISA · Question #271
An IS auditor has been tasked with analyzing an organization's capital expenditures against its repair and maintenance costs. Which of the following is the BEST reason to use a data analytics tool for
The correct answer is D. It enables the auditor to work with 100% of the transactions.. Data analytics tools are best utilized in audits to analyze the entire population of transactions, rather than just a sample.
Question
An IS auditor has been tasked with analyzing an organization's capital expenditures against its repair and maintenance costs. Which of the following is the BEST reason to use a data analytics tool for this purpose?
Options
- AIt reduces the sample size required to perform the audit.
- BIt improves the reliability of the data.
- CIt reduces the error rate.
- DIt enables the auditor to work with 100% of the transactions.
How the community answered
(59 responses)- A2% (1)
- B7% (4)
- C3% (2)
- D88% (52)
Why each option
Data analytics tools are best utilized in audits to analyze the entire population of transactions, rather than just a sample.
Data analytics tools typically allow for analysis of a larger dataset, often the entire population, thereby potentially eliminating the need for sampling or reducing the risk associated with sample size limitations, not primarily reducing the sample size itself.
While data analytics can highlight data quality issues, the tool itself does not inherently improve the reliability of the source data; it merely processes what is provided.
Data analytics tools can help identify errors within the data, but they do not inherently reduce the original error rate of the transactions being analyzed.
Data analytics tools enable auditors to analyze 100% of the transactions, providing a complete view and identifying anomalies or trends that might be missed in a sample, which significantly enhances the scope and depth of the audit.
Concept tested: Benefits of data analytics in auditing
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