Question

Explain the importance of accountability in data analysis and give example.

Answer 1

Data analysis includes number crunching and a lot of analysis based on the trends from the numbers. Now the conclusions drawn based on the that analysis and recommendations issued are based on a lot of assumptions.

Now when investment decisions are taken based on those recommendations, it requires authenticity and accountability to warrant that analysis synthesis.

For example when a due diligence report is issued by a consulting firm, they also issue a reliance letter which mentions the accountability of the firm for the analysis and recommendations presented in that report.