Auditing and Assurance in Australia

This document discusses the use of data analytics in audit risk for cochlear, including focusing on complete datasets, comparing industry data, and providing audit evidence through analysis. It also explores the challenges of data analysis for cochlear, such as barriers to implementation and data harmonization. References are provided for further reading.

Running head: AUDITING AND ASSURANCE IN AUSTRALIA
Auditing and assurance in Australia
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AUDITING AND ASSURANCE IN AUSTRALIA
Table of Contents
Answer to question no 1.................................................................................................2
Two ways of using data analytics in audit risk of cochlear.......................................2
Barrier’s to data analysis............................................................................................3
Challenges of data analysis for cochlear....................................................................4
References......................................................................................................................5
Appendices.....................................................................................................................6

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Answer to question no 1
Two ways of using data analytics in audit risk of cochlear
The use of the data analytics though have not yet advanced up to the mark, still it had
helped immensely in the external auditing of the companies. It is seen that almost all the
companies have used continuous auditing techniques and monitoring the data to identify the
possible risk and regulation to the process of internal auditing technique. However it is seen
that the data analytics have also gained advantage in processing the external auditing
techniques. These areas are as follows-
 The cochlear company had focused on the complete datasets rather than the sample
testing. Hence it has helped the company to construct the audit process.
 The company had also looked to compare the industry data will other datasets in order
to fill the lackness in investigation. This is the main area to focus for by the company
auditor (Barka and Legendre 2017.).
 In the case of general ledger, cochlear company had provided audit evidence through
making comprehensive analysis.
Firms can expand the audit evidence
From the annual report of cochlear company it is seen that the audit evidences should
grow beyond the audit options. The assurance needs are important in the area of data quality,
assurance, security, fraud detection and the internal control. Hence the assurance process
helps to mitigate the data gap between the management and finance (Ivers et al.,2014).

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Continuous auditing
The audit process should be conducted over the years. Thus the auditing technique
could be performed manually. Thus the required level of assurance is needful in reducing the
errors and risk.
Hence in this way the cochlear company have tried to apply the key and effective
audit technique that could be helpful to identify the effective risk areas.
Barrier’s to data analysis
The data analysis has been a major part of concentration by the industries over the
years. Thus for cochlear company it is important to implement those techniques which are
very much important to the business. It can be best understood when these hurdles are used to
combat all the required areas. However there are a lot of issues with the implementation of
the data analysis for cochlear company. These are as follows-
Use of effective tool
Letting out all the ineffective tools and techniques is an important step towards
implementing the data processing. These data base are very much helpful to determine the
audit plans. These new tools helps to create effective audit tasks for cochlear company
(Pandit et al.,2014). Thus there is need of implementing effective business techniques within
the company. Therefore it is needful that the company meets the day to day target with this
aspect.
Learning of new tool

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Often it is seen that the company have implemented or outsourced new business
software to the business. Sometimes the workers take time to learn new tools. Thus it hinders
the progress of the company (Yoon et al.,2015.).
Challenges of data analysis for cochlear
Data harmonisation
Cochlear company looks to harmonise the data sets since the data analysis have
become more diversified. Therefore the challenge is mitigate the data gaps and insights. The
two potential risk which is associated with the business data analytics is related to the product
innovation and competition where Cochlear is exposed to the risk of develop and produce
innovative products for the customers. Another risk is related to the infringement litigations
operated within the industry which has substantial intellectual property and patent and
trademark protecting the intellectual property.

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References
Barka, H.B. and Legendre, F., 2017. Effect of the board of directors and the audit committee
on firm performance: a panel data analysis. Journal of Management & Governance, 21(3),
pp.737-755.
Ivers, N.M., Grimshaw, J.M., Jamtvedt, G., Flottorp, S., O’Brien, M.A., French, S.D., Young,
J. and Odgaard-Jensen, J., 2014. Growing literature, stagnant science? Systematic review,
meta-regression and cumulative analysis of audit and feedback interventions in health
care. Journal of general internal medicine, 29(11), pp.1534-1541.
Pandit, J.J., Andrade, J., Bogod, D.G., Hitchman, J.M., Jonker, W.R., Lucas, N., Mackay,
J.H., Nimmo, A.F., O'Connor, K., O'Sullivan, E.P. and Paul, R.G., 2014. 5th National Audit
Project (NAP5) on accidental awareness during general anaesthesia: protocol, methods, and
analysis of data. British journal of anaesthesia, 113(4), pp.540-548.
Yoon, K., Hoogduin, L. and Zhang, L., 2015. Big Data as complementary audit
evidence. Accounting Horizons, 29(2), pp.431-438.

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Appendices

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