Auditing Standards Specifically Require Audit Acc
Under the case itself, there are three articles you can use to answer the 1st (first) requirement of the case. Also, then answer the 2nd (second) requirement. Following that, there is the actual data (sales and weather data) to be used to do the third case requirement. Remember, please do your own work, show all of your work, and explain your process to me in getting where you do for requirement #3 of the case (i.e. screenshots, explain in paragraph form, etc). This will be turned in through TurnItIn to check for plagiarism.
1. Read the articles assigned by your instructor to gain an understanding about how Big Data, data analytics, and new technologies are transforming external audits. After reading these articles, provide a response to the following two questions: a. Discuss at least three specific ways in which Big Data, data analytics, and new technologies can enhance external audits. How does each item discussed improve the effectiveness and/or efficiency of the audit? b. On the other hand, what challenges do auditors face when using Big Data, data analytics, and new technologies during an audit?
2. As noted in the case, auditing standards specifically require auditors to identify revenue recognition as a fraud risk in most audits. Based on your understanding of the company, what factors may increase the risk of fraudulent financial reporting in Souper Bowl’s 2016 revenues?
3. Use the daily sales by location as provided by the client (2016 and 2015) and the weather data from NOAA to perform disaggregated sales analytics in Tableau. Your goal is to develop visualizations that identify potential outliers in the 2016 daily sales data related to the significant risks identified by the partner and manager. Using the memo template in Appendix B, document your analyses and conclusions as to the specific daily sales from certain locations that you recommend selecting for focused substantive testing.