Certified Internal Auditor (CIA) Part 3: Business Knowledge for Internal Auditing — Question 125

Which of the following best describes a potential benefit of using data analytics?

Answer options

• A. It easily aligns with existing internal audit competencies to reduce expenses.
• B. It provides a more holistic view of the audited area.
• C. Its outcomes can be easily interpreted into audit conclusions.
• D. Its application increases internal auditors' adherence to the Standards.

Correct answer: B

Explanation

The correct answer, B, highlights that data analytics provides a comprehensive understanding of the audited area, which is crucial for effective auditing. Option A discusses cost reduction but does not directly address the benefits of data analytics itself. Option C mentions interpretation into conclusions, but does not capture the broader perspective gained from analytics. Option D focuses on compliance rather than the analytical benefits.