Timothy Steele, a recent college graduate and new audit staff member, is having lunch with Michael Watts, an audit senior. Both are working on the audit engagement of a retailer that has operations in North America and Europe. Timothy says to Michael, I have been doing some reading about audit data analytics, and there is something I dont understand. While I understand the importance of internal controls to the reliability of the clients data, I also keep reading that the auditor needs to clean the data before it can be analyzed. I dont understand what people are talking about with when they talk about clean data. Is there a difference between clean and dirty data? Can you explain this to me with a practical illustration? I just dont get what the discussion of clean data is about. Answer Timothys questions. As Timothy asks, explain the concept of clean versus dirty data with a practical illustration.

Timothy Steele, a recent college graduate and new audit staff member, is having lunch with Michael Watts, an audit senior. Both are working on the audit engagement of a retailer that has operations in North America and Europe. Timothy has another question for Michael: In my reading I have seen a number of examples of audit data analytics. However, I am having a difficult time distinguishing between ADA as a risk assessment procedure and ADA as a substantive test. Can you explain the difference to me and illustrate with a practical example? Answer Timothys questions. Explain the difference between ADA as a risk assessment procedure and ADA as a substantive test. Illustrate your explanation with practical illustrations.