An Auditor Will Perform Predictive Analytics Before Diagnostic Analytics

question 12

True/False

An auditor will perform predictive analytics before diagnostic analytics.

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Definitions:

Double-entry Accounting

An accounting method that records each transaction twice, as both a debit and a credit, to maintain the balance of the accounting equation.

Debit Account Balances

Balances that appear on the left side of the ledger, indicating resources or expenses.

Credit Account Balances

The amount owed by a borrower on a credit account, reflecting any purchases, payments, charges, or adjustments.

Equity

The value of an owner’s interest in a property or a business, after deducting liabilities and debts.