Hariet Hemingway, CPA, has identified an opportunity to use data analytics in her audit program. She remembers from a recent team training session that the data should be relevant and reliable but isn’t sure how to apply relevance. She’s approached you for clarification on how to apply the concept of relevance to audit data analytics.

Required

a. Describe to Hariet the importance of relevant data when using ADAs.

b. Hariet has returned to you to verify she is using relevant data. Her goal is to conclude on the accuracy of the payments made to vendors for the year. She has obtained a list of all purchase orders for the past two complete years and is going to verify that none are missing by analyzing the sequential purchase order numbers. She has also obtained the Accounts Payable general ledger balances and will compare these with the purchase order total by month. Provide Hariet with feedback on her approach.