Prepare a memo to management that explains how and whydata analysis is used in the various stages of the audit process,including the risk assessment stage, the determination of samplingmethod and audit universe, the substantive procedures stage, andthe end of the audit.
Specifically, the following critical elements must beaddressed:
1. Data Analysis: Risk Assessment Stage: Explain howand why data analysis is used at the risk assessment stage of theaudit process.
2. Data Analysis: Determination of sampling method andaudit universe: Explain how data analysis is used in thedetermination of sampling method and audit universe.
3. Data Analysis: Substantive procedures stage:Explain how and why data analysis is used at the substantiveprocedures stage of the audit.
4. Data Analysis: End of audit: Explain how and whydata analysis is used near the end of an audit.
