What changes with analytics
Instead of testing a small sample, analytics tools examine the complete population and highlight items that do not fit expected patterns. Auditors then apply judgement to those exceptions.
Typical tests
- Journal entries posted at weekends, late at night or by unusual users
- Duplicate invoices or payments
- Gaps in document numbering
- Amounts just below approval thresholds, or unusual round amounts
- Three-way matching of purchase orders, receipts and invoices
Preparing the data
Provide complete extracts reconciled to the trial balance, with field definitions. Agree formats with the auditors early so the same scripts can be reused every year.
From experience
Our team has used Big 4 analytics tools and Databricks-based scripts to test full transaction populations on audit and controls engagements, and brings the same approach to our clients and audit firm partners.
This article is general information, not accounting, tax or legal advice. Rates, thresholds and effective dates should be confirmed with the official sources (IFRS Foundation, tax authorities, regulators) or your adviser before acting.