What is a good response to? What stages of the audit process do you think Data Analytics can be the most useful and why? How might Data Analytics be used to assist in tax planning? All processes can benefit from data analytics. Data analytics has transformed the auditing process to make them more efficient, more accurate and helps to provide more insights into the financials. Data analytics can help to provide information regarding a business and its operations. It can bring light to potential risks the company might have and help to guide auditors in how to address these items in their audit. Data analytics can also help to identify key areas that need to be reviewed. Benford's Law is a great example of how data analytics can be used in the auditing process. This is where the first digit of the data sets are analyzed (Colins, 2017). A great example might be as follows, it is common knowledge that banks need to report cash transactions of over $10,000. In order to avoid that, a person may make multiple small deposits in a short amount of time and different branches. This was actually one of the things we watched for when I worked at the bank and needed to make notes on the person's account. Utilizing Benford's Law can help to identify the structuring of the transactions. Tax data analytics can help to deliver great tax insights for a business. This can in turn create greater business revenue, can understand and plan for tax liability. Tax data analytics can be used to help aid in tax planning.
What is a good response to?
What stages of the audit process do you think Data Analytics can be the most useful and why? How might Data Analytics be used to assist in tax planning?
All processes can benefit from data analytics. Data analytics has transformed the auditing process to make them more efficient, more accurate and helps to provide more insights into the financials. Data analytics can help to provide information regarding a business and its operations. It can bring light to potential risks the company might have and help to guide auditors in how to address these items in their audit. Data analytics can also help to identify key areas that need to be reviewed. Benford's Law is a great example of how data analytics can be used in the auditing process. This is where the first digit of the data sets are analyzed (Colins, 2017). A great example might be as follows, it is common knowledge that banks need to report cash transactions of over $10,000. In order to avoid that, a person may make multiple small deposits in a short amount of time and different branches. This was actually one of the things we watched for when I worked at the bank and needed to make notes on the person's account. Utilizing Benford's Law can help to identify the structuring of the transactions.
Tax data analytics can help to deliver great tax insights for a business. This can in turn create greater business revenue, can understand and plan for tax liability. Tax data analytics can be used to help aid in tax planning.
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