Page 246 - CA Final PARAM Digital Book.

2A. Audit Analytics: Analyzing large data to find actionable insights, trends, conclusions, and facilitating
informed decisions.
2B. Efficiency in Audit: - Enhances the review process through more accuracy and efficiency.
2C. Improvement in Quality: - Enhances audit quality by allowing effective auditing of large IT data sets.
3. Methods:
- Computer Assisted Auditing Techniques (CAATs): Data analytics tools and visualization methods that
increase audit quality.
- Auditors utilize various applications and tools for analyzing large data sets to improve audit quality.

4. Example: ACL
ACL - Audit Command Language (ACL) Analytics is a data extraction and analysis software used for fraud
detection and prevention, and risk management. It samples large data sets to find irregularities or patterns
in transactions that could indicate control weaknesses or fraud. ACL (Audit Command Language) is used to
analyse and check complete data sets to perform Trial Balance reconciliations during the Audits. In such case
scenarios, the entity provided the General Ledger dump and system Trial Balance. Using ACL, the
completeness of the data can be ensured as the data set exceeded beyond the capacity of the excel and basic
functions like record count, sum, pivoting can be performed within ACL where excel could not perform such
actions.

QNO Examples of automated tools New Course – (SM23)
DAA.900 TITANIUM CNO -- DAA.260
Enterprises are adopting emerging technologies at a rapid pace to create synergies and harness the latest
technologies. Give 3 examples of automated tools used as a part of emerging technologies along with the
risk and audit considerations associated with these tools.
Answer Automated Tools In Audit
(Shortcut: BRAIN)
Blockchain
Robotic Process Automation
AI (Artificial intelligence)
Internet of Things
NFT (Non-Fungible Token)

Blockchain
- Decentralized and encrypted ledger.
- Transactions are validated and then replicated to participants.
- Sequential blocks prevent unauthorized modifications.
- Wide-ranging industrial benefits recognized.

Robotic Process Automation
RPA is a software technology that mimics human actions in interacting with digital systems, enhancing
process efficiency, customer experience, and control effectiveness. Unlike humans, RPA bots can work
continuously with increased speed, reliability, and accuracy.

AI (Artificial Intelligence)
AI allows machines or systems to think and learn using data-driven algorithms.Decisions arise from complex
algorithms based on patterns or behaviours acquired over time.

Internet of Things
IoT involves connecting devices, such as cell phones, appliances, and machines, to the internet.

NFT (Non-Fungible Token)
NFTs are unique digital tokens that cannot be exchanged on a one-for-one basis like cryptocurrencies. They
represent ownership of unique items, from photos and videos to artwork and collectibles. These digital assets
are secured by blockchain, ensuring their uniqueness and authenticity.

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