ABSTRACT
Data analysis for auditors involves the use of techniques to convert data to numerical forms and subject them to the appropriate statistical analysis so that appropriate audit conclusions can be drawn regarding the achievement of business objectives and control objectives. It examines judgmental sampling and differentiated it from statistical sampling. Although both are valid within audit practice, it is primarily statistical sampling that lends itself to use in internal audit data analysis. Data analytics, when used as part of an integrated audit program, can lead auditors to a better understanding of the management processes required to achieve business and control objectives as well as the deficiencies within those processes. Internal audit standards currently require consideration of the use of data analysis in order to gain in-depth understanding of corporate business practices, but this will evolve as the role of internal audit moves further and further toward the auditor as a consultant instead of the conventional compliance role.
