Which of the following statements is true regarding the use of Audit Data Analytics (ADA)?

Multiple Choice

• The standard of documentation sufficiency for an ADA is less than that of other audit procedures

• The auditor must exercise professional judgment during the ADA, but does not need to act with professional skepticism

• The auditor need not document every professional judgment made

• All misstatements discovered, regardless of materiality, should be included in the audit documentation

Which of the following is not a reason for data cleansing?

Multiple Choice

• Data may be too large in volume

• Fields that should contain dates may have letters

• Fields may contain data outside preset acceptable values

• All of the above are reasons for data cleansing

Which of the following are true with regard to the relevance and reliability of data used in an Audit Data Analytic (ADA)?

1. The auditor must use all data with a logical connection to the ultimate purpose of the audit procedure
2. The auditor must evaluate internal controls over the preparation of data being used

Multiple Choice

• I only

• Both I and II are true

• Both I and II are false

• II only