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the software used in performing the ADA

When documenting an Audit Data Analytic (ADA), an experienced auditor with no prior connection to the engagement should be able to understand all these elements of the ADA except

determine the overall purpose and specific objectives of the ADA

1st step of planning an ADA

testing can be more efficiently conducted across 100% of transactions

An auditor imports a client’s purchasing cycle transactions for the purposes of testing authorization controls. Which of the following is true regarding the implementation of this audit data analytic?

there is no specific requirement to include client data in auditing documentation

which of the following is correct regarding including client data in audit documentation for an issuer

comparing cash collections to sales invoices and discounts in the revenue cycle

all of the following procedures are common uses of audit data analytics in risk assessment procedures excepta specific data analytic test to assess the accuracy of income statements

the auditor performs journal entry exception testing for employee entry amount limits

which of the following is a common use of ADA in performing test of controls?

Plan the ADA

Access and prepare the data for purposes of the ADA

Consider the relevance and reliability of the data used

Perform the ADA

Evaluate the results and conclude on whether the purpose and specific objectives of  performing the ADA have been achieved

The proper order of performing Audit Data Analytics

the process used to produce the data examined

for documentation of an ADA to be considered sufficient, all the following should be recorded except?

the auditor should consider obtaining information from a more reliable source before continuing with the ADA

In determining the reliability of the data to be used by the audit team, an auditor discovers the data is controlled internally by the accounting department. Which of the following is the most likely step the auditor would take after learning of this information?

number of annual transactions compared to the number of weekly transactions, a consolidated statement compared to a single segment of a statement, and a total account balance compared to a single transaction within that balance

Certain characteristics of data may affect the relevance and reliability of the data used in the ADA. The level of aggregation is one of these characteristics. Which of the following does not illustrate differing levels of aggregation?

the auditing standards do not specifically address the tools auditors may use in performing the audit

An auditor is considering choosing an ADA tool for performing a risk assessment procedure. Which of the following best describes the requirements in the auditing standards?

the auditor may use any of the above depending on the purposes of the ADA

An auditor is considering the appropriate software to perform an ADA for a substantive analytical procedure. Which of the following types of software is the auditor most likely to use?