When is the use of descriptive analytics most beneficial in auditing?

Descriptive analytics is most beneficial in auditing when conducting historical data analysis. This type of analytics focuses on understanding past events and interactions by summarizing historical data to identify patterns, trends, and anomalies. In the context of auditing, this means analyzing data from completed transactions or past periods to evaluate compliance, efficiency, and effectiveness of processes.

Descriptive analytics allows auditors to gain insights from historical data, providing a foundation for identifying areas that may require further investigation or improvement. By examining past performance and outcomes, auditors can assess whether controls are functioning as expected and whether organizational objectives were achieved. This analytical approach does not involve predictions about future events or the evaluation of new controls, as it solely focuses on what has already occurred. Therefore, conducting historical data analysis is where descriptive analytics shines in the auditing process.