Question

Explain how applying ADA as a substantive test differs from ADA as a risk assessment procedure.

Answer 1

ADA refers to audit data analytics and it is the science and art of discovering and analysing pattern identifying anomaly,and expecting other useful information in data underlying are related to subject matter of audit.

audit data analytics and risk assessment procedure will be involved with matching of information with the data already present to access the risk involved so it will help in deciding the limit of the substances procedure you like matching of the payroll data with vendor data for matching residential address which shows high risk of fraud.

Audit data analytics as substantive proceedure will be involving matching information in the accounting fraud with the information on underlying document like vouching of quantity is mentioned in the invoice with quantity mentioned in the shipping bill.

so it can be said that audit data analytics as a substantial procedure and Audit data analytics as a risk assessment procedure is different and they have different use.