The identification of fraud while conducting an audit examination is always a possibility. Even though the focus of a financial statement audit is the fair representation of the statements of the company, the auditor must reconcile the risks associated with a fraud detected during the audit and its financial statement impact. IT auditing has a more challenging requirement as the fraud can be buried in program code, program algorithms, and

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or embedded calculations. Data analytic applications can be used to help detect these fraudulent outcomes, along with other audit testing activities. In your initial post, discuss how the auditor would use and

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or apply data analytics in their audit examination, with at least one example. Provide full details as if you were explaining the application of data analytics to the Senior Manager on the audit engagement.