（2008）Use of Data Extraction Analysis Software In a Financial Statement Audit.pdfVIP

Use of Data Extraction Analysis Software In a Financial Statement Audit A Message from “The Audit Wizard” April 2008 Making Auditors Proficient, Inc. Phone: 352-750-9636 E-mail: ballen@ © 2008 Making Auditors Proficient, Inc. (MAP) Purpose The purpose of this paper is to assist audit partners (owners) in understanding how data extrac- tion and analysis software allows you to be a more proficient auditor. This paper will not show you how to use the software, but it will show you various uses of the software in financial state- ment audits. This paper will show you where you can use data analysis in place of current auditing methods and not only get quicker results, but get more comprehensive results. It will also show you how to use data analysis to enhance some of the tests that you are currently performing. What is Data Extraction and Analysis Software? It is software that you load on your computer, generally a laptop, and take into the field with you on an audit. Extraction: You can then extract your client’s data and import it into the software as a database. Analysis: The software will allow you to analyze the data. For instance, if you want to examine journal entries you can extract all the journal entries by writing a simple formula and within min- utes you will have another database with all the journal entries for the period specified. This is probably the best, and maybe the only way that you can be assured that you have the entire population of journal entries. The IDEA® – Data Analysis Software will allow you to extract limitless files and all the analyses can be performed using dropdown menus. In using IDEA original data cannot be added to, deleted from, or modified because you are using a copy of the client data versus original data, and therefore you are unable to corrupt the client’s data Appendix A to t