What is a good response to? Under what circumstances do you believe using Data Analytics would significantly improve the auditing process and tax planning? Include examples. Data Analytics along with data visualization allow auditors to capture large datasets and easily and quickly illustrate patterns. Per Wilson and Dennis (2021), "Audit data analytics can analyze large datasets from clients to discern trend and anomalies and streamline audit processes to provide greater accuracy and overall audit quality". This can greatly improve an auditors understanding of a company's operations and risks. Auditors utilize Data Analytics to reduce their workload. Tools utilized for audit data analytics can be as simple as Excel for simple calculations on a spreadsheet to advance machine learning and AI models. Data Analytics can be applied throughout the audit process, from Audit Planning to Journal Entry Testing to Risk Assessment. If one were to compare risk assessment with a traditional approach and through data analytics, unusual and sporadic individual transactions may not stand out using the traditional method. Through data analytics and visualization, unusual transactions are more defined and highlighted. One of the greatest challenges faced for tax planning is combining structured (data that exists in ERP systems) and unstructured (data on spreadsheets, documents, and emails) data with manual effort. With data analytics and visualization the risk of manual effort is eliminated and the tax team can shift focus from data management to data analyzation. Per McIntyre (2017), "Analyzing trends in Revenue, Expense, and Currency fluctuations in the context of different business strategies that the company is considering could yield interesting trends in effective tax rates and cash taxes".
What is a good response to?
Under what circumstances do you believe using Data Analytics would significantly improve the auditing process and tax planning? Include examples.
Data Analytics along with data visualization allow auditors to capture large datasets and easily and quickly illustrate patterns. Per Wilson and Dennis (2021), "Audit data analytics can analyze large datasets from clients to discern trend and anomalies and streamline audit processes to provide greater accuracy and overall audit quality". This can greatly improve an auditors understanding of a company's operations and risks. Auditors utilize Data Analytics to reduce their workload. Tools utilized for audit data analytics can be as simple as Excel for simple calculations on a spreadsheet to advance machine learning and
One of the greatest challenges faced for tax planning is combining structured (data that exists in ERP systems) and unstructured (data on spreadsheets, documents, and emails) data with manual effort. With data analytics and visualization the risk of manual effort is eliminated and the tax team can shift focus from data management to data analyzation. Per McIntyre (2017), "Analyzing trends in Revenue, Expense, and Currency fluctuations in the context of different business strategies that the company is considering could yield interesting trends in effective tax rates and cash taxes".
AI-generated content may present inaccurate or offensive content that does not represent bartleby’s views.
Unlock instant AI solutions
Tap the button
to generate a solution
