Final answer:
Audit data analytics (ADA) can be used to draw attention to anomalies for investigation, match transactions like receivables with cash receipts, and ensure accuracy in financial records.
Step-by-step explanation:
An example of the use of audit data analytics (ADA) would be to draw attention to any anomalies that need investigating. ADA can help auditors match transactions such as receivables with subsequent cash receipts or match sales billings with cash receipts. Moreover, ADA tools can analyze vast datasets to identify patterns, trends, and outliers that might indicate errors, fraud, or areas that require further investigation.
Matching receivables with subsequent cash receipts and matching sales billings with subsequent cash receipts are examples of ADA applications. They help ensure that recorded transactions have actually occurred and have been recorded accurately. However, the use of ADA is not limited to these matching processes; it also includes more complex analytics to flag transactions or accounts that deviate from the norm, which could potentially point to issues warranting a deeper look.