Audit II - ADA Homework

Analysis of accounts receivable collection periods by region is most likely a part of which of the following types of ADA? A. Risk assessment procedures B. Tests of controls C. Substantive analytical procedures D. Tests of details

A. Risk assessment procedures

The automated approach to audit analytics can be delivered through: Ad hoc procedures Continuous execution Repetitive analysis A. i only B. ii and iii C. iii only D. i, ii, and iii

B. ii and iii

For documentation of an ADA to be considered sufficient, all the following should be recorded except? A. Who reviewed work performed within the output of the ADA. B. Who performed the work and created the output of the ADA. C. The process used to produce the data examined. D. Identifying characteristics of specific items or matters tested.

C. The process used to produce the data examined.

All of the following procedures are common uses of audit data analytics in risk assessment procedures except: A. analyzing trends in inventory costs. B. identifying sales which did not follow the typical three way match control in the revenue cycle. C. comparing cash collections to sales invoices and discounts in the revenue cycle. D. calculating accounts receivable collection periods by region.

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

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? A. Number of annual transactions compared to the number of weekly transactions B. A consolidated statement compared to a single segment of a statement C. A total account balance compared to a single transaction within that balance D. All of the above illustrate differing levels of aggregation

D. All of the above illustrate differing levels of aggregation

Select the proper order in performing Audit Data Analytics: I. Evaluate the results and conclude on whether the purpose and specific objectives of performing the ADA have been achieved II. Consider the relevance and reliability of the data used III. Plan the ADA IV. Perform the ADA V. Access and prepare the data for purposes of the ADA A. V, III, II, IV, I B. II, III, V, IV, I C. II, V, III, IV, I D. III, V, II, IV, I

D. III, V, II, IV, I

Which of the following is correct regarding including client data in audit documentation for an issuer? A. Auditors are required to retain their client's data in documentation for seven years. B. Auditors should always include client data in their documentation to enable an experienced auditor with no prior connection to the engagement to replicate testing. C. Client data should never be included in documentation. D. There is no specific requirement to include client data in auditing documentation.

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