Module G Homework

Select the proper order in performing Audit Data Analytics: 1. Evaluate the results and conclude on whether the purpose and specific objectives of performing the ADA have been achieved 2. Consider the relevance and reliability of the data used 3. Plan the ADA 4. Perform the ADA 5. Access and prepare the data for purposes of the ADA

3, 5, 2, 4, 1

The first step of planning an ADA is:

determine the overall purpose and specific objectives of the ADA.

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?

All of the above illustrate differing levels of aggregation

When performing an ADA, which of the following best describes an appropriate sequence used by an auditor for risk assessment purposes?

An auditor develops an audit plan after evaluating the results of the risk assessment ADA.

When identifying and assessing inherent risk through the use of audit data analytics, what type of analytic would an auditor most likely perform first?

Comparison of sales revenue to prior period and expectations.

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?

Testing can be more efficiently conducted across 100% of transactions.

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

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

The auditor performs journal entry exception testing for employee entry amount limits.

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

There is no specific requirement to include client data in auditing documentation.

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:

the software used in performing the ADA.