Which of the following data analytics techniques would an auditor most likely use to identify unusual transactions or patterns that might indicate fraud?

Question: Which of the following data analytics techniques would an auditor most likely use to identify unusual transactions or patterns that might indicate fraud?

Answer options:

• Forecasting future sales trends.
• Regression analysis to determine cost drivers. ✅ Anomaly detection using statistical models and rules.
• Sentiment analysis of social media mentions.

Correct answer: Anomaly detection using statistical models and rules.

Explanation: Anomaly detection is specifically designed to identify observations that deviate significantly from other observations in a dataset, which is highly effective in pinpointing unusual transactions or patterns that could be indicative of fraudulent activities during an audit.