If the auditor is performing substantive tests at an interim date, the auditor must perform steps to update their conclusion to the date of the financial statements.

Group of answer choices

True

False

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Question 2

3pts

Audit data analytics can be used _______.

Group of answer choices

at virtually any phase of the audit

only at the beginning of the audit

only at the end of the audit

c. by the internal audit function only

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Question 3

3pts

Once the auditor has planned the application of audit data analytics, the auditor should _______.

Group of answer choices

access the data and prepare the data for the internal auditors to review

seek the approval of management with respect to the tests

determine how much these procedures will increase the cost of the audit and advise management accordingly

access the data, make a copy of the client's data, and prepare the data for analysis

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Question 4

3pts

The first step in audit data analytics is _______.

Group of answer choices

checking the numerical continuity of the data

making sure the data is complete

checking both of these simultaneously

checking neither of these

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Question 5

3pts

When electronic data is obtained from an outside entity, _______.

Group of answer choices

it should be referred to management for vetting, before being submitted to the auditor for analysis

the auditor should consider the reliability of the data.

the auditor should assume the data is inaccurate and unreliable

the auditor should assume that it is valid and free from error

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Question 6

3pts

If the auditor is auditing an accounts receivable file, the auditor will want to make sure the receivable file matched the_______.

Group of answer choices

trial balance as of the date of the test.

investing section of the statement of cash flows as of the date of the test.

general ledger as of the date of the test.

general ledger as of any date before the test.

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Question 7

3pts

If the auditor is auditing revenues and identifies gaps in the sequence of pre-numbered sales invoices, _______.

Group of answer choices

the auditor is unlikely facing a completeness problem, even if the file reconciles with the general ledger

the auditor may be facing a valuation problem, even if the file reconciles with the general ledger

the auditor may be facing a completeness problem, even if the file reconciles with the general ledger

the auditor is unlikely facing a valuation problem, even if the file reconciles with the general ledger

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Question 8

3pts

Audit data analytics (ADA)_______.

Group of answer choices

is effective not only for identifying general types of misstatements, but is also capable of identifying specific transactions or accounts that are likely to be misstated

is only capable of identifying specific transactions or accounts that are likely to be misstated

is effective neither at identifying general types of misstatements or capable of identifying specific transactions or accounts that are likely to be misstated

is effective only for identifying general types of misstatements

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Question 9

3pts

Cluster analysis is defined as _______.

Group of answer choices

the process of discovering individual pieces of similar items in a set of data; items in the same group are similar, while items in different groups are not as similar.

determining which package of audit services can be sold to a client at the best possible price

the process of discovering groups (termed clusters in data science) of similar items in a set of data; items in the same group are similar, while items in different groups are not as similar.

analyzing management techniques and administrative policies simultaneously

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Question 10

3pts

Matching information in key data fields _______.

Group of answer choices

is a process where the auditor uses audit data analytics to search for key characteristics that may exist in several different databases

is typically a task assigned to the internal audit function

is a process where the auditor uses audit data analytics to search for key characteristics that may exist in the same database

is a process where the auditor uses his or her understanding of inherent risk to search for key characteristics that may exist in several different databases