Chapter 5 Flashcards
(20 cards)
Sensors
Provide details on events that occur (date and time stamps, door access via keycard)
Does better data create better analytical models
Yes
Homogenous Data Systems
All data is stored in the same type of system so there is no need for data translation
Heterogenous Data Systems
Data is stored in different types of systems that are translated before going into a data warehouse
Audit Data Standards
Identify common tables and fields needed for audit analytics
Included in current Audit Data Standards (READ)
Base
General Ledger
Order to Cash Subledger
Procure to Pay Subledger
Inventory Subledger
Base
Master data and formats
Order to Cash Subledger
Orders and receivables from customers
Procure to Pay Subledger
Purchases and payments to suppliers
Benefits of Audit Data Systems (ADS) (READ)
Consistency in Data Extraction
Facilitating Data Driven Audits
Enhancing Audit Quality
Interoperability between systems
Reduction of Manual Effort
Improved Transparency and Reporting
What two things does automation involve?
Determining timing of updates and parameters
What to do when an outlier is detected
5 parts of a standardized audit plan (READ)
Methodology
Scope
Risk
Procedures
Evaluation
Continuous Auditing
Provides real time assurance over business processes
Continuous Monitoring
Evaluates controls and transactions and is primarily used to show effectiveness of internal controls
What happens when an auditing rule is violated?
An exception occurs
True Positive Exception
A problematic event
What happens when there are too many false positive alarms
Auditors could face information overload
Data Warehouse
Central Repository of data accumulated from internal and external sources
True Negative
A correctly classified normal event
False Negative
A problematic event that is incorrectly classified as normal
