Question 1

The concept of testing at an interim date relates to _______.

Accepted Answer

A) testing at year-end 
B) testing at a point before year-end 
C) testing after year-end 
D) None of these answer choices is correct. 
A) testing at year-end 
B) testing at a point before year-end 
C) testing after year-end 
D) None of these answer choices is correct. B

Question 2

A risk associated with visualizations is _______.

Accepted Answer

A) that the pretty picture of the visualization will be remembered and not the message it was intended to convey 
B) that the pretty picture of the visualization will not be remembered and instead the message it was intended to convey is remembered instead 
C) everyone will interpret them in the same way 
D) no one will understand the picture, just the words 
A) that the pretty picture of the visualization will be remembered and not the message it was intended to convey 
B) that the pretty picture of the visualization will not be remembered and instead the message it was intended to convey is remembered instead 
C) everyone will interpret them in the same way 
D) no one will understand the picture, just the words A

Question 3

Which of these steps is not used in a regression analysis?

Accepted Answer

A) Determining which assertions apply to which dependent variables 
B) Validate the prediction equation from a business logic point of view 
C) Validate the prediction equation from a statistics point of view 
D) Use the regression equation to make predictions for the data being currently audited 
A) Determining which assertions apply to which dependent variables 
B) Validate the prediction equation from a business logic point of view 
C) Validate the prediction equation from a statistics point of view 
D) Use the regression equation to make predictions for the data being currently audited A

Question 4

The reliability of audit evidence is decreased when it is obtained from independent sources outside the entity.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A) the auditor is unlikely facing a completeness problem, even if the file reconciles with the general ledger 
B) the auditor may be facing a completeness problem, even if the file reconciles with the general ledger 
C) the auditor may be facing a valuation problem, even if the file reconciles with the general ledger 
D) the auditor is unlikely facing a valuation problem, even if the file reconciles with the general ledger 
A) the auditor is unlikely facing a completeness problem, even if the file reconciles with the general ledger 
B) the auditor may be facing a completeness problem, even if the file reconciles with the general ledger 
C) the auditor may be facing a valuation problem, even if the file reconciles with the general ledger 
D) the auditor is unlikely facing a valuation problem, even if the file reconciles with the general ledger

Question 6

Regression analysis _______.

Accepted Answer

A) comes in many forms, including simple linear regression analysis 
B) is rarely used in auditing, as it is too complex 
C) is best performed by the internal audit function 
D) should only be conducted with a data-set vetted and approved by management 
A) comes in many forms, including simple linear regression analysis 
B) is rarely used in auditing, as it is too complex 
C) is best performed by the internal audit function 
D) should only be conducted with a data-set vetted and approved by management

Question 7

When the auditor uses the 'matching information in key data fields' process, the expectation is that _______.

Accepted Answer

A) there should be minimal variances 
B) there should always be variances 
C) there should be no matches 
D) there should only be variances when two different databases are used 
A) there should be minimal variances 
B) there should always be variances 
C) there should be no matches 
D) there should only be variances when two different databases are used

Question 8

If the auditor finds a misstatement when performing substantive tests, _______.

Accepted Answer

A) the auditor should immediately withdraw from the engagement 
B) the auditor needs to evaluate the materiality of the misstatement 
C) the auditor should immediately increase inherent risk related to the engagement 
D) the auditor should immediately decrease inherent risk related to the engagement 
A) the auditor should immediately withdraw from the engagement 
B) the auditor needs to evaluate the materiality of the misstatement 
C) the auditor should immediately increase inherent risk related to the engagement 
D) the auditor should immediately decrease inherent risk related to the engagement

Question 9

Audit data analytics can be used _______.

Accepted Answer

A) as a risk assessment tool 
B) as a test of controls 
C) as a test of details 
D) All these answer choices are correct. 
A) as a risk assessment tool 
B) as a test of controls 
C) as a test of details 
D) All these answer choices are correct.

Question 10

Visualization is defined as _______.

Accepted Answer

A) a synonym for forecasting 
B) the representation of a data set or key information, such as a chart or another image 
C) transparency in financial reporting 
D) the calculation of material variances from predicted amounts 
A) a synonym for forecasting 
B) the representation of a data set or key information, such as a chart or another image 
C) transparency in financial reporting 
D) the calculation of material variances from predicted amounts

Question 11

Regression analysis is best defined as _______.

Accepted Answer

A) a statistical process which involves estimating a prediction equation that expresses an item of interest (commonly known as the y or dependent variable) in terms of other data fields 
B) a non-statistical process which involves estimating a prediction equation that expresses an item of interest (commonly known as the y or dependent variable) in terms of other data fields 
C) a statistical process which involves estimating a prediction parameter that expresses an item of interest (commonly known as the y or dependent variable) in terms of other data fields 
D) a non-statistical process which involves estimating a prediction parameter that expresses an item of interest (commonly known as the y or dependent variable) in terms of other data fields 
A) a statistical process which involves estimating a prediction equation that expresses an item of interest (commonly known as the y or dependent variable) in terms of other data fields 
B) a non-statistical process which involves estimating a prediction equation that expresses an item of interest (commonly known as the y or dependent variable) in terms of other data fields 
C) a statistical process which involves estimating a prediction parameter that expresses an item of interest (commonly known as the y or dependent variable) in terms of other data fields 
D) a non-statistical process which involves estimating a prediction parameter that expresses an item of interest (commonly known as the y or dependent variable) in terms of other data fields

Question 12

Audit data analytics (ADA) is effective only for identifying general types of misstatements and not for identifying specific transactions or accounts that are likely to be misstated.

Accepted Answer

A) True 
 B)False

Question 13

Visualizations are typically produced _______.

Accepted Answer

A) to reveal information to people 
B) to assist with inputting complex information into computer systems 
C) by the client's legal counsel when a lawsuit has been threatened 
D) by management for the external auditors 
A) to reveal information to people 
B) to assist with inputting complex information into computer systems 
C) by the client's legal counsel when a lawsuit has been threatened 
D) by management for the external auditors

Question 14

_______ helps auditors to identify patterns and deviations from patterns and outliers in the analysis stage of an audit data analytics (ADA) procedure.

Accepted Answer

The answer of _______ helps auditors to identify patterns and...

Question 15

An auditor has determined through testing of controls, that his or her previously determined opinion on internal control is not accurate.What should the auditor consider doing?

Accepted Answer

The auditor should consider amending his

Question 16

Audit data analytics should _______.

Accepted Answer

A) be customized to the individual client and industry 
B) be tailored to the individual client but consistent across an industry 
C) should be the same for each client, but differ among industries 
D) should be the same for both client and the industry in which they operate 
A) be customized to the individual client and industry 
B) be tailored to the individual client but consistent across an industry 
C) should be the same for each client, but differ among industries 
D) should be the same for both client and the industry in which they operate

Question 17

The item of interest in a regression analysis is referred to as the _______.

Accepted Answer

A) dependent variable 
B) independent variable 
C) any x variable 
D) hypotenuse 
A) dependent variable 
B) independent variable 
C) any x variable 
D) hypotenuse

Question 18

Audit data analytics (ADA) is effective for _______.

Accepted Answer

A) identifying general types of misstatements, as well as identifying specific transactions or accounts that are likely to be misstated 
B) identifying general types of misstatements only 
C) identifying specific transactions or accounts that are likely to be misstated only 
D) none of the above 
A) identifying general types of misstatements, as well as identifying specific transactions or accounts that are likely to be misstated 
B) identifying general types of misstatements only 
C) identifying specific transactions or accounts that are likely to be misstated only 
D) none of the above

Question 19

Delta company has determined that, on average, it turns its receivables over 14.5 times per year.Last year its receivables turnover was 12.7.Calculate both year days in receivables, and indicate if this is a positive or negative trend.

Accepted Answer

Current year days in receivables = 365/1

Question 20

It is appropriate for the auditor _______.

Accepted Answer

A) to compare electronically what was previously compared manually. 
B) to compare manually what was previously compared electronically. 
C) to do neither of these things 
D) to do both these things 
A) to compare electronically what was previously compared manually. 
B) to compare manually what was previously compared electronically. 
C) to do neither of these things 
D) to do both these things

The concept of testing at an interim date relates to _______.

A risk associated with visualizations is _______.

Which of these steps is not used in a regression analysis?

The reliability of audit evidence is decreased when it is obtained from independent sources outside the entity.

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

Regression analysis _______.

When the auditor uses the 'matching information in key data fields' process, the expectation is that _______.

If the auditor finds a misstatement when performing substantive tests, _______.

Audit data analytics can be used _______.

Visualization is defined as _______.

Regression analysis is best defined as _______.

Audit data analytics (ADA) is effective only for identifying general types of misstatements and not for identifying specific transactions or accounts that are likely to be misstated.

Visualizations are typically produced _______.

_______ helps auditors to identify patterns and deviations from patterns and outliers in the analysis stage of an audit data analytics (ADA) procedure.

An auditor has determined through testing of controls, that his or her previously determined opinion on internal control is not accurate.What should the auditor consider doing?

Audit data analytics should _______.

The item of interest in a regression analysis is referred to as the _______.

Audit data analytics (ADA) is effective for _______.

Delta company has determined that, on average, it turns its receivables over 14.5 times per year.Last year its receivables turnover was 12.7.Calculate both year days in receivables, and indicate if this is a positive or negative trend.

It is appropriate for the auditor _______.

Introduction and Overview of Audit and Assurance

Professionalism, Ethics and Legal Liability

Risk Assessment Part Iaudit Risk and Audit Strategy

Risk Assessment Part Iiunderstanding the Client

Audit Evidence

Understanding of the Clients System of Internal Controls

Risk Responseperforming Tests of Controls

Risk Responseperforming Substantive Procedures

Risk Responseaudit Sampling for Substantive Testing

Auditing the Revenue Cycle

Auditing the Purchases Cycle and Payroll Cycle

Auditing Cash, Inventory, Investing and Financing Activities

Completing the Audit

Reporting on the Audit

Filters

Exam 7: Data Analyticsoverview and Application

The concept of testing at an interim date relates to _______.

A risk associated with visualizations is _______.

Which of these steps is not used in a regression analysis?

The reliability of audit evidence is decreased when it is obtained from independent sources outside the entity.

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

Regression analysis _______.

When the auditor uses the 'matching information in key data fields' process, the expectation is that _______.

If the auditor finds a misstatement when performing substantive tests, _______.

Audit data analytics can be used _______.

Visualization is defined as _______.

Regression analysis is best defined as _______.

Audit data analytics (ADA) is effective only for identifying general types of misstatements and not for identifying specific transactions or accounts that are likely to be misstated.

Visualizations are typically produced _______.

_______ helps auditors to identify patterns and deviations from patterns and outliers in the analysis stage of an audit data analytics (ADA) procedure.

An auditor has determined through testing of controls, that his or her previously determined opinion on internal control is not accurate.What should the auditor consider doing?

Audit data analytics should _______.

The item of interest in a regression analysis is referred to as the _______.

Audit data analytics (ADA) is effective for _______.

Delta company has determined that, on average, it turns its receivables over 14.5 times per year.Last year its receivables turnover was 12.7.Calculate both year days in receivables, and indicate if this is a positive or negative trend.

It is appropriate for the auditor _______.

Introduction and Overview of Audit and Assurance

Professionalism, Ethics and Legal Liability

Risk Assessment Part Iaudit Risk and Audit Strategy

Risk Assessment Part Iiunderstanding the Client

Audit Evidence

Understanding of the Clients System of Internal Controls

Risk Responseperforming Tests of Controls

Risk Responseperforming Substantive Procedures

Risk Responseaudit Sampling for Substantive Testing

Auditing the Revenue Cycle

Auditing the Purchases Cycle and Payroll Cycle

Auditing Cash, Inventory, Investing and Financing Activities

Completing the Audit

Reporting on the Audit

Filters