Which of the following areas of financial reporting is most suitable for applying data analytics techniques?
A)Evaluation of estimates and valuations.
B)Variance reporting.
C)Calculating the components of equity.
D)Depreciation.

Question

Quizplus · Accepted Answer

Evaluation of estimates and valuations involves significant judgments and assumptions. With data analytics techniques, auditors can analyze large volumes of data and identify unusual patterns or trends that may require further investigation. This can help auditors determine whether the estimates and valuations are reasonable and appropriate. Therefore, applying data analytics techniques to this area of financial reporting is most suitable.

Which of the Following Areas of Financial Reporting Is Most