Which of the following is a common use of ADA in performing tests of controls?

Multiple Choice

• The auditor performs exception testing for proper approval of purchase transactions

• The auditor conducts trend analysis on inventory turnover

• The auditor performs an aging of accounts payable

• All of these choices are correct.

Audit Data Analytics (ADA) allow the auditor to test/analyze 100% of the data rather than a sample. What is the benefit of being able to test the entire population of data?

	Increased Assurance				Increased Reliability
A)		Yes				No
B)		No				No
C)		No				Yes
D)		Yes				Yes

Multiple Choice

• Option A

• Option B

• Option C

• Option D

Which of the following is not important when considering the reliability of client data?

Multiple Choice

• If the auditors information system has been subject to reliability testing

• Client controls over data preparation

• All of the above are important

• The source reliability