An Example of the Use of Data Analytics at the End

question 121

True/False

An example of the use of data analytics at the end of the audit is using software to scan unusual journal entries that may require additional consideration by the auditor of their potential impact on the year-end financial statements.

---

Definitions:

Existing Statistics

Pre-collected numerical data that represents information or inputs on a variety of topics within a society or specific field of study.

Experiments

Methodical trials or tests carried out under controlled conditions to investigate hypotheses, observe effects, and establish causation in scientific studies.

Statistically Significant

A measure indicating that the likelihood of an observed effect occurring by chance is low, often used in research to validate findings.

Experimental Method

A research method that tests hypotheses and establishes causality by using control and experimental groups and manipulating independent variables.