Based on an assessment of audit risk, the auditors are concerned with the following two risks:

1. The risk that that the client might be making duplicate payments to vendors.
2. The risk that the clients accounting clerk might be making unauthorized payments to himself.

Required:

a. Assuming that the client has a manual accounting system, describe how the auditors can design a test to identify the duplicate payments and unauthorized payments.

b. Assuming that the client has an IT accounting system, describe how the auditors might use data analytic software to design a test to identify the duplicate payments and the unauthorized payments.

c. Describe the advantages of using data analytics software to identify unusual transactions or entries.