Machine learning is a technique and approach that is becoming increasingly prevalent in the world of auditing. Which of the following represents the best example of a scenario whereby machine learning could be used effectively? A Chief Financial Officer wishes to ensure that all bad debt expense write offs are personally approved by him before being authorized. An auditor wishes to improve the response rate for accounts receivable positive confirmations. ● An auditor wishes to identify unauthorized revenue transactions in a client's general ledger. O None of these answer choices are correct.
Machine learning is a technique and approach that is becoming increasingly prevalent in the world of auditing. Which of the following represents the best example of a scenario whereby machine learning could be used effectively? A Chief Financial Officer wishes to ensure that all bad debt expense write offs are personally approved by him before being authorized. An auditor wishes to improve the response rate for accounts receivable positive confirmations. ● An auditor wishes to identify unauthorized revenue transactions in a client's general ledger. O None of these answer choices are correct.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Machine learning is a technique and approach that is becoming increasingly prevalent in the world of auditing.
Which of the following represents the best example of a scenario whereby machine learning could be used
effectively?
O
A Chief Financial Officer wishes to ensure that all bad debt expense write offs are personally approved by him before
being authorized.
An auditor wishes to improve the response rate for accounts receivable positive confirmations.
An auditor wishes to identify unauthorized revenue transactions in a client's general ledger.
None of these answer choices are correct.
Dan and Asher are discussing how a machine learning model might look one day after their auditing class. Dan
mentions to Asher that in order for the model to be successful and accurate, which of the following would first
have to happen?
The firm installing the machine learning system and software would need to ensure that all scheduled updates are
installed properly.
O The auditor would need to evaluate the systems predictions in order to determine the accuracy of the model.
The model itself would have to first make predictions in order to determine if the predictions were accurate once the
data was analyzed.
The model would first have to be fed raw, clean data. The system would need this data to proceed with any analyses.
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