This course will examine how auditors traditionally use analytic procedures such as means, modes, and variance analysis. Collectively these traditional techniques are referred to as summary statistics. However, audit data analytics are much more than summary statistics. We will define and explore the term "audit data analytics" or ADAs. We will then walkthrough ADAs' application, including data visualization techniques using custom programmed software.
The application of the ADAs has the potential to be a transformative change to how auditors perform testing. The change is analogous to Major League Baseball's journey to embracing data analytics to help make decisions captured in the book and film Moneyball. This course aims to help auditors move into a data analytics mindset to unlock the opportunities of integrating ADAs into an audit engagement.
We will also discuss how the use of data analytics is being integrated into identifying and assessing the risks of material misstatement.
Publication Date: June 2024
Designed For
Introduction to Audit Data Analytics
Topics Covered
- Introduction
- What is audit data analytics (ADA)?
- Data analytics and the audit standards
- ADA Walkthrough
- The benefits and challenges of using ADA
- The ADA mindset and SMART action steps
Learning Objectives
- Identify audit data analytics (ADA)
- Identify how to guide the profession into the audit data analytic mindset
- Identify how to apply ADAs, including data visualization, through a customized software walkthrough
- Identify the future of ADAs for the audit profession
- Identify the benefits and challenges of using ADAs
Level
Basic
Instructional Method
Self-Study
NASBA Field of Study
Auditing (1 hour), Information Technology (1 hour)
Program Prerequisites
None
Advance Preparation
None
Instructor
Garth Sheriff
Garth Sheriff is the founder of Sheriff Consulting. We specialize in designing and delivering leadership, ethics, and technology courses for accounting and finance professionals. Sheriff Consulting’s mission is to provide an engaging approach to your continuing professional education. Sheriff Consulting is a NASBA-approved CPE sponsor.
Our content is designed for maximum engagement using the latest developments in adult learning pedagogy. The learning objectives in our courses will help you:
1. Navigate our engagement and communication challenges across all levels of experience in our current work environment
2. Exploring how to maintain and uphold our ethical responsibilities by examining organizational failures such as FTX, Theranos, and Boeing.
3. Prepare for how transformative technology such as blockchain and artificial intelligence will impact our profession.
Garth has worked as an assurance professional and learning provider for over 20 years. He has prepared and trained CPAs for key changes to the profession, including the adaption to the hybrid workplace and understanding the risks and rewards of the artificial intelligence boom we are currently experiencing.
He earned a Master of Accounting and a Bachelor of Arts (Honours – Accounting) from the University of Waterloo, Canada. He is a member of the Chartered Professional Accountants of Ontario (CPAO), the American Institute of Certified Public Accountants (AICPA), and the Institute of Internal Auditors (IIA).
Garth has also acted in various stage and film productions. He is a graduate in improvisation from The Second City and a member of ACTRA (the Alliance of Canadian Cinema, Television and Radio Artists.