AUDIT ANALYTICS AUDIT

ESSAY 2: THE CURRENT STATE OF CONTINUOUS AUDITING AND CONTINUOUS MONITORING
Figure 2-9
The following figure represents use of linear regression in
conducting data analysis. The three points identified outside and
above the confidence band pertain to unfavorable outliers that
need further investigation (Countries 1, 2, and 3). The two points
falling outside and below the confidence band pertain to favorable
outliers that would likely be investigated to uncover company
best practices information.
The ability of the preceding regression procedure to assist in the
discovery of outliers and exceptions clearly makes the oversight process
significantly more efficient.
In addition to the previously noted internal audit dashboard benefits, the
module offers other noteworthy strengths:
1. Any of the pertinent data may be readily provided to external
audit personnel and other interested parties through an intranet
website.
2. Extensive drilldown capabilities facilitate data disaggregation
tasks. For example, in conducting global analytics, a user may
start with region (for example, the Americas) and proceed to drill
down through the layers of geography, business unit, process, and
so forth (figure 2-10). Ultimately, the individual could isolate a
particular record of interest to obtain detailed information, such as
the name of the employee who posted or approved the transaction.
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