SB G

When considering the data chain, is otherwise known as sufficient, appropriate evidence.

Blank 1: wisdom

When an auditor performs an ADA and the objectives of the test were not achieved the auditor ______.

may abandon ADA and conduct a substantive test of detail

In situations where unusual items have been identified, the auditor ______ identified as unusual.

must also address the risk of material misstatement for items not

In order for auditors to be able to achieve a high level of substantive comfort, when designing a test, auditors need to think carefully about ______ when finalizing the audit plan.

predictability

When an auditor chooses among different ways to use ADA to conduct substantive analytical procedures, the professional standards state that more relationships among the data allow the auditor to take much more substantive comfort from the test.

predictable

There are a wide variety of additional tools that auditors have available today such as IDEA, ACL, and Tableau. Microsoft Excel ______.

remains a mainstay in the audit profession

Key issues in accessing client data are that it ______.

remains secure and maintains its integrity at all times can be imported into the auditor's tool in a complete and accurate format

When gathering evidence using ADA, the auditor must make sure that the evidence is

sufficient

According to the AICPA Audit Guide , can be thought of in terms of the variations in which an ADA might be deployed in an audit.

techniques

ADA has a major impact on transaction level control testing by enabling the auditor to more easily ______.

test the entire population

True or false: The key in performing an ADA is to think critically about the design and execution and then consider additional procedures for items that warrant further attention.

true

The largest audit firms in the world have been devoting significant time and money in an attempt to harness the power of , advanced analytical tools and other emerging technologies to improve the financial statement audit.

Blank 1: Big Blank 2: Data

There is little doubt that th development of new audit techniques that take full advantage of , advanced analytical tools, artificial intelligence, and robotic process automation offer the potential to improve audit efficiency and effectiveness.

Blank 1: Big Blank 2: Data

The systematic computational analysis of data in a manner that yields insight in the audit process is, at a basis level, the meaning of

Blank 1: analytics

To maximize the usefulness of big data, the audit of the future will have to employ in a robust and meaningful way.

Blank 1: analytics

A form of cognitive technology that is capable of learning as it absorbs informational cues in a task setting is called

Blank 1: artificial Blank 2: intelligence

Auditors may choose to use heat map visualization to prioritize the ideas generated during the required

Blank 1: brainstorming

Identifying data errors in a file, checking for proper formatting, and removing all subtotals and blank columns are included in the steps taken during the data

Blank 1: cleansing

The steps of the analytics chain (in order) are understanding, , , and deployment.

Blank 1: cleansing Blank 2: modeling Blank 3: evaluation

When planning the ADA, the reliability of the client's information system is taken into acccount to help reach a conclusion about the objectives of

Blank 1: completeness Blank 2: accuracy

As a general concept, the term implies an elemental level of numbers and/or characters within an organization.

Blank 1: data

Facts and/or statistics that are collected together for some type of reference point or analysis, ultimately within a context is

Blank 1: data

Low-cost tracking and dissemination of information through a network of interconnected peer-to-peer ledger systems sharing identical accounts and balances in real-time is possible due to the technology behind

Blank 1: distributed Blank 2: ledger

When an ADA identifies an item that may not represent a transaction with a higher level of risk of material misstatement is is sometimes called a(n)

Blank 1: false Blank 2: positive

One way to prioritize the ideas generated during the brainstorming session is with a(n)

Blank 1: heat Blank 2: map

In a sense, auditor testing of the reliability of a client data set is an example of the auditor testing the client's by the or IPE.

Blank 1: information Blank 2: produced Blank 3: entity

Unless there is proof in the workpapers that auditors have considered disconfirming evidence, it is possible or likely that inspection teams from the PCAOB would have questions about whether was properly exercised when completing the ADA.

Blank 1: professional Blank 2: skepticism

True or false: Before performing analytics, it is essential to understand the nature of the data and make sure it is properly modeled for use on the audit.

False

True or false: The increased use of data and analytical tools has the potential of improving the efficiency of risk assessment procedures, but will not likely increase the effectiveness of analytical procedures during the planning stages of the audit.

False

Common tools used in ADA include ______.

IDEA Tableau Microsoft Excel

At the core, ______ applications are built from chains of algorithms that enable a software application to work through information in a way that compares to human brain functionality.

artificial intelligence

"The science and art of discovering and analyzing patterns, identifying anomalies, and extracting other useful information in data underlying or related to the submit matter of an audit through analysis, modeling, and visualization for the purpose of planning or performing the audit" is the definition of ______.

audit data analytics

For purposes of the financial statement audit, the concept of IPE is quite ______.

broad

Once data is accessed from the client, the first step for the auditor is to properly

cleanse

In this new world of audit data analytics, it is important to ______.

consider the usefulness of the data

Recalculations of depreciation expense using the entire database and exact purchase dates to improve the precision of testing is an example of a test of

detail

Of all the emerging technologies, ______ is likely to have the most far-reaching impact on future accounting and assurance practices.

distributed ledger technologies

Utilizing third-party data to supplement "traditional" analytical procedures during planning, gives auditors access to increased volume of data on the client but has the potential to have an initial negative impact on audit ______.

efficiency

When completing an ADA, audit documentation is ______ documentation for other audit procedures

equally as important as

One way to test all items in a population of occurrences for a particular control activity is to use testing, which is now possible due to the emergence of ADA.

exception

When fully considering any unusual circumstances that might be revealed as a result of the ADA, it is important that the auditor ______.

exercises skepticism

According to the AICPA Audit Guide to Audit Data Analytics, there are five steps that need to be conducted when completing ADA. The Plan the ADA step includes ______.

identifying the purpose and objectives identifying significant accounts and assertions selecting techniques and tools to be used

The data chain consists of ______.

knowledge information wisdom

Audit documentation for an ADA ______.

must include an evaluation of matters identified from applying the ADA should include a description of the source of the data should include the specific objectives of the procedure

To help ensure that data received is complete and accurate, the reliability of accounting systems and information technology controls must be tested ______ using data from a client system.

prior to

Clients ______.

provide data in a variety of file formats

A client's accounts receivable consists of 200,000 accounts. The auditor has concluded that all but 75 of the accounts have an extremely low likelihood of being misstated. As a result, the auditor decides to perform a positive confirmation procedure with those 75 accounts. In regards to the other 199,275 accounts, the professional standards currently ______.

provide no guidance in determining the level of evidence this confirmation procedure will provide

Important considerations that needs to be made by the auditor regarding the data being considered to be used are _______.

whether it is the most relevant data available the reliability of the data source the internal controls over the preparation of the data

The actual performance of the ADA ______ purpose.

will be different depending on the ultimate