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Audit Analytics

Data Science for the Accounting Profession

  • J. Christopher Westland

Part of the Use R! book series (USE R)

Table of contents

  1. Front Matter
    Pages i-xiv
  2. J. Christopher Westland
    Pages 1-18
  3. J. Christopher Westland
    Pages 19-39
  4. J. Christopher Westland
    Pages 41-61
  5. J. Christopher Westland
    Pages 63-86
  6. J. Christopher Westland
    Pages 87-112
  7. J. Christopher Westland
    Pages 113-137
  8. J. Christopher Westland
    Pages 139-160
  9. J. Christopher Westland
    Pages 161-188
  10. J. Christopher Westland
    Pages 189-241
  11. J. Christopher Westland
    Pages 243-278
  12. J. Christopher Westland
    Pages 279-290
  13. J. Christopher Westland
    Pages 291-305
  14. J. Christopher Westland
    Pages 307-336
  15. Back Matter
    Pages 335-344

About this book

Introduction

Today, information technology plays a pivotal role in financial control and audit: most financial data is now digitally recorded and dispersed among servers, clouds and networks over which the audited firm has no control. Additionally, a firm’s data—particularly in the case of finance, software, insurance and biotech firms— comprises most of the audited value of the firm. Financial audits are critical mechanisms for ensuring the integrity of information systems and the reporting of organizational finances. They help avoid the abuses that led to passage of legislation such as the Foreign Corrupt Practices Act (1977), and the Sarbanes-Oxley Act (2002).

Audit effectiveness has declined over the past two decades as auditor skillsets have failed to keep up with advances in information technology. Information and communication technology lie at the core of commerce today and are integrated in business processes around the world. This book is designed to meet the increasing need of audit professionals to understand information technology and the controls required to manage it. The material included focuses on the requirements for annual Securities and Exchange Commission audits (10-K) for listed corporations. These represent the benchmark auditing procedures for specialized audits, such as internal, governmental, and attestation audits.

Using R and RStudio, the book demonstrates how to render an audit opinion that is legally and statistically defensible; analyze, extract, and manipulate accounting data; build a risk assessment matrix to inform the conduct of a cost-effective audit program; and more.

Keywords

R statistical software R code auditing accounting Sarbanes-Oxley report materiality internal control attestation GAAP GAAS

Authors and affiliations

  1. 1.Department of Information & Decision SciencesUniversity of IllinoisChicagoUSA

Bibliographic information