Question

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.

True

False

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Question 2

Audit data analytics can be used _______.

-only at the beginning of the audit

-only at the end of the audit.

-by the internal audit function only

-at virtually any phase of the audit

Question 3

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

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

-seek the approval of management with respect to the tests

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

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

Question 4

The first step in audit data analytics is _______.

-checking both of these simultaneously

-making sure the data is complete

-checking neither of these

-checking the numerical continuity of the data

Question 5

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

-the auditor should assume the data is inaccurate and unreliable

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

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

-the auditor should consider the reliability of the data.

Question 6

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

-trial balance as of the date of the test.

-general ledger 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 any date before the test.

Question 7

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

-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 is unlikely 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

Question 8

Audit data analytics (ADA)_______.

-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 only for identifying general types of misstatements

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

Answer 1

SOLUTION IS -

1. TRUE

2. D - at virtually any phase of the audit

3. C - access the data, make a copy of the client's data, and prepare the data for analysis

4. B - making sure the data is complete

5. D - the auditor should consider the reliability of the data.

6. B - general ledger as of the date of the test.

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

8. C - is effective only for identifying general types of misstatements