INDIVIDUAL ASSESSMENT TASK

DUE DATE: 12 MAY 2021 (WEEK 10) BY 5.00 PM

The weighting/value of the individual assessment task is 10%.
The individual assessment, together with your signed assignment cover sheet, should be submitted
via Moodle. A Turnitin report must be submitted. The marking rubric is posted in Moodle under
the heading ‘Individual Assessment’ label. No special consideration has been granted. A penalty
of 10% of total marks applies for each day.

Learning outcomes of the individual assessment

After completing this assessment, you should be able to

1. Identify the factors contributing to the use of data analytics in financial statement audits.
2. Distinguish between traditional auditing methodologies from data analytics tools used in
auditing.
3. Application of the concepts of professional judgment, professional skepticism and
audit risk and planning in the audit process.
4. Explain the fundamental principles of the Professional Code of Ethics.
5. Evaluate auditor’s legal liability to their clients and third parties from the use of
data analytics.

e.g. big data can collect use whole population

data. thus traditional sampling would be outdated minimum 5-10 journals, can use professional body articles

Individual assessment task

Prof. Arnold Schilder, Chairman International Auditing and Assurance Standards Board, states
the following:
“The use of data analytics in an audit of financial statements will not replace the need for the
auditor to exercise appropriate professional judgment and professional skepticism. Furthermore,
the world continues to change at an ever-increasing rate, with complexity becoming more
prominent, particularly in relation to technology. Thus there is some urgency to deal with changes
that are needed to keep the standards relevant and fit-for-purpose.”
Required:
Artificial intelligence (AI), robotic process automation, business analytics, and blockchain are changing the
way businesses are conducted, which have a significant impact on the financial audit. Discuss the effect of
these advances in technologies on audit fees, audit competition, professional code of ethics, expectations
gap, auditor’s report, and the challenges faced by the audit profession, in the light of Schilder‘s comments

The challanges an auditor would have in reagrds to the changes in technology

[100 marks]

1
Learning resources
.
Earley, C. (2015). Data analytics in auditing: Opportunities and challenges. Business Horizons,
58(5), 493-500.

Rose, A. M., Rose, J. M., Sanderson, K. A., & Thibodeau, J. C. (2017). When should audit firms introduce
analyses of Big Data into the audit process? Journal of Information Systems, 31(3),
81-99.

Note
Read the article titled, ‘Earley, C. (2015). Data analytics in auditing: Opportunities and
challenges. This reading aims to give you an understanding of the background to data analytics