During a review of the accounts payable process, an internal auditor gathered all of the vendor payment transactions for the past 24 months. The auditor then used an analytics tool to identify the top five vendors that received the highest sum of payments.
Which of the following analytics techniques did the auditor apply?
Data analysis is the technique applied by the auditor in this scenario. By gathering vendor payment transactions and using an analytics tool to identify the top five vendors with the highest payments, the auditor is performing data analysis. This involves examining raw data to draw informed conclusions, typically through the use of statistical and computational techniques.
According to GTAG,the answer is C. A number of specific analytical techniques have been proven highly effective in analyzing data for audit purposes. for example: Calculation of statistical parameters (e.g., averages, standard deviations, highest and lowest values) to identify outlying transactions.
can the answer be data mining?