Question

You are a partner in a medium-size CPA firm and want to convince your partners that your firm should update the way it conducts audits in order to become more competitive. Specifically, you believe the company should make use of up-to-date data analytics technology. Write a memo to your partners to explain what data analytics technology is and the advantages to using it. Chapter 10 (From Effective Writing A Handbook for Accountants by May) contains suggestions on memo organization and format. Submit your paper in PDF format and see Syllabus naming convention.

Answer 1

To: Partners

From: Name of the partner

Date: dd/mm/yy

Subject: Data Analytics Technology - A new way to improve

I'm writing to impart you an impressive way to conduct audits in order to stay competitive in the industry. I really feel that we should update the way we conduct audits to provide full fledged, effective and efficient services to our clients. So, I came across with a new technology which help us to attain our vision which is nothing but DATA ANALYTICS TECHNOLOGY. Let me explain in detail.

Data analytics technology is the process of examining the sets of raw data, analysing it in detail to arrive at a conclusion. It uncovers patterns of data to provide valuable insights from it. It is a broad term that encompasses many diverse types of data analysis. It can be used to get insight that can be used to improve things. The techniques and process of data analytics have been automated into mechanical processes and algorithms which work over raw data for human use.

It helps a business to optimize its performance. It helps to identify more efficient ways of doing business with reduced costs and by storing large amounts of data. It also helps in making better decisions and takes business to a new path of promises and success by helping to create new and better products and services. Data can be collected first hand from our customers or purchase it from other organisations. It allows you to tailor customer service to their needs, provide more personalization and build stronger relationships with them.

Benefits to us:

1.We can test a greater number of transactions than we do now.

2.Audit quality can be increased by providing greater insights into client's processes.

3. Detection of fraud will be easier

4.Risk assessment and tend tracking is much more effortless.

5. Examination of transactions are way too higher than current levels. We are able to sort, filter and analyse huge transactions to identify discrepancies making it easier to focus on potential concern.

6. Helps clients in making strategic decisions about their businesses.

7. Data analytics allow the auditor to automate testing of transactions i.e., 100% transactions can be tested.

I think I have given a good idea about the Data Analysis Technology. Please let me know whether we should proceed with it. I'd appreciate your cooperation as takes place. I would like to know your take on this as soon as possible.