Kristi Carin was assigned to perform the year end audit at Vulcan Spice Mills. She had already made a preliminary risk assessment analysis and determined that the potential for fraud was high due to the significant volume of employee expenses. The controls surrounding the employee expenses were weak due to the ability of management to override the controls. Kristi decided to design an ADA to perform a substantive test on the reimbursement of employee expenses.

Required:

1. 1 .When planning and performing an ADA, auditors should follow the five-step process suggested by the CPA Canada Guide to Audit Data Analytics. Using this as guidance, formulate a substantive test for employee expenses.

Hint: Be sure to include:

The main assertions related to the employee expense account.

The data Kristi will require to perform the substantive test.

2. 2. List and describe five different, practical uses of Audit Data Analytics.

Answer rating: 100% (QA)

Answer 1 2 Audit Data Analytics I D escriptive diagnostic inferential predic... View the full answer