Student Forums CIA Part 3: Business Knowledge for Internal Auditors CIA Challenge exam – Part 3 Business Knowlege – Data analytics

CIA Challenge exam – Part 3 Business Knowlege – Data analytics

  • This topic has 5 replies, 3 voices, and was last updated 2 months ago by Walid Mazzah.
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  • #242998

    This forum is restricted to members of the associated course(s).

    This forum is restricted to members of the associated course(s).

    Virginia Yu
    Participant

    Hi, I still don’t get the difference between clean data and normalized data, why in this situation is only cleaning the data and not normalized? In the study materials, it mentioned (pg 39) “Normalize data is to ensure data is consistence” , Are we not trying to make the date in a consistence format? Need some more clarification.

    Study Questions: An auditor is looking at the following dates pulled from a set of data:

    19 November, 2018
    2020-02-05
    January 31, 2019
    June 4 2020
    1st of March, 2018

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  • #243003

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    Kevin Hock
    Participant

    Virginia,

    Normalizing refers to the data being all sensible and correct; cleaning refers to data being in the same style and format.

    An example of dates that would need to be normalized are:

    April 35, 2019 (this is not real date)
    May 12, 1019 (this year is clearly incorrect)
    Novembary 11, 2028 (the month is not valid, is it November or February?)

    And, just as an additional point: the above example dates need to be normalized, but not cleaned, because they are all in the same format.

    Other examples of normalization include things like numbers have the correct number of digits, numbers falling into a certain range, no data being far outside of normal, etc.

    Does that help?

    Kevin

    #243023

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    Virginia Yu
    Participant

    Thank you Kevin, this is clear and helpful.

    #243880

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    Walid Mazzah
    Participant

    Hello Kevin, 

    Expanding on Virginia’s question, you mention that normalization would include verifying that the data contains the proper amount of digits.
    Is it meant as having the proper magnitude (thousands vs. millions) or checking whether we were expecting 2 decimals and some fields contain 3 (and that would be more a format issue, hence a cleaning type of check)?

    Thanks in advance for your answer!

    #243885

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    Kevin Hock
    Participant

    Walid,

    Normalizing includes making sure that data is sensible, so if an account is usually thousands and is now millions, that probably indicates something may have been incorrectly recorded and would be found during normalizing. Decimals would be part of cleaning, i.e. if all numbers should have two decimals, for example.

    Kevin

    #243887

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    Walid Mazzah
    Participant

    Thank you Kevin!

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