Perform Audit Data Analytics Learning objective Performing audit data analytics (ADAs) during an engagement can significantly aid with obtaining higher levels of assurance while doing so efficiently. Auditors can use the large amounts of data collected and stored by companies to examine entire populations, draw initial conclusions, and identify notable items that require further procedures to be performed. Overall, using ADAs will help draw and focus the auditor's attention to what otherwise could be difficult to identify and conclude on using traditional sampling methods. The CPA Canada Guide to Audit Data Analytics suggests a five-step process for planning, performing, and evaluating ADAs as pictured in the figure below:

Using ADA to Review Sales Transactions

W&S Partners has assessed the sales transactions and balance as a higher risk due to the following factors:

Introduction of a new artificial intelligence pricing software

Low employee morale Increasing pressure for sales during an economic downturn

Cyberattack

The audit team will be performing ADAs to understand the sales transactions and have obtained several datasets. You are responsible for reviewing the small wholesale customer dataset. Small wholesale customers are managed by a team of salespeople. Each member of the sales team is responsible for a particular range of small wholesale customer accounts as follows:

Salesperson #1: CS1100 - CS1399

Salesperson #2: CS1400 - CS1699

Salesperson #3: CS1700 - CS1999

The sales team has the ability to offer discounts to small wholesalers as long as it does not bring the selling price below $36 in order to ensure that costs are covered. Anything below this would require special approval and may result in a reduced commission.

An Audit Case Study Required Use both the Excel file and the working paper provided (A13-1) to complete the following:

1. Create a pivot table to sum the transaction amount by date.

2. Create a line chart based on the pivot table to draw initial conclusions and identify any notable exceptions in transaction dates. (Hint: Be sure to consider the facts presented in the case in order to anticipate what you would expect to see as results, as well as consider in terms of risks.)

3. List the initial conclusions and notable items you identified using the table in A10-1 along with an indication of whether further procedures are required. Support with rationale.

4. Describe the follow-up procedures you would perform based on the notable items identified in step 3.

5. Organize the data to identify transactions at risk of unauthorized discounts. Repeat steps 3 and 4 to document your conclusions and describe your follow-up procedures.

ADA Result - steps 1-4

conclusion/notable item Identify whether follow-up is required and why/why not. clearly state your conclusion.