‘The auditor should design and perform its audit procedures that are most appropriate in the circumstances for the purpose of sufficient appropriate audit Analysis.’

We can show the following steps for an internal audit department should consider in determining the level of data analytics to use for an engagement

1 identify the different stages of an audit and planning od audit proceduger

First of all auditor should identify the different stages of audit how and in which way the whole audit process will goes on and planing must maintaining objectivity and skepticism, auditors may want to inquire extensively with clients about the metrics monitored by clients’ management.

2 explain the process used in gaining an understanding of the client

Explaining the whole procedure to the client so claient can support to the fullest to the auditorThis effort to understand the business and what’s important to management can help the auditors set up data analytics tools in the most useful way for the audit

3Getting IT involved.

Auditors must make sure that clients’ systems are producing reliable data. Audit data analytics software won’t produce the desired results if the data entering the system are not reliable and appropriately precise.

4 define fraud risk and understand audit procedures to reduce this risk

Auditor should define the fraud in clients activity and also should explain the procedures , how the chances of the risk could be reduceed

5 explain the going concern assumption and describe corporate governance

“It should be a needed to do a certain amount of detailed testing around certain aspects of U.S. GAAP,” Comito said. “You’re going to have to read whole contracts. contracts have clauses in that have meaning in U.S. GAAP that a pure analytic may not cover.”