Question 1

The term notable item refers to something that _______.

Accepted Answer

A) is indicative of a risk of material misstatement 
B) has not been previously identified (a new risk) 
C) represents a higher risk of material misstatement than anticipated by the auditor 
D) All these answer choices are correct. 
A) is indicative of a risk of material misstatement 
B) has not been previously identified (a new risk) 
C) represents a higher risk of material misstatement than anticipated by the auditor 
D) All these answer choices are correct.

Question 2

False positives refer to _______.

Accepted Answer

A) items incorrectly identified as notable items 
B) items correctly identified as notable items 
C) negative confirmations incorrectly received from client vendors 
D) positive confirmations incorrectly received from client vendors 
A) items incorrectly identified as notable items 
B) items correctly identified as notable items 
C) negative confirmations incorrectly received from client vendors 
D) positive confirmations incorrectly received from client vendors

Question 3

The concept of a roll-forward process relates to _______.

Accepted Answer

A) audit risk 
B) inherent risk 
C) the timing of audit procedures 
D) invoicing the client for work yet to be performed 
A) audit risk 
B) inherent risk 
C) the timing of audit procedures 
D) invoicing the client for work yet to be performed

Question 4

Defining notable items depends on _______.

Accepted Answer

A) the assertion being audited, and the auditor's understanding of the business and industry. 
B) the assertion being audited only 
C) the auditor's understanding of the business and industry only 
D) neither the assertion being audited, nor the auditor's understanding of the business and industry. 
A) the assertion being audited, and the auditor's understanding of the business and industry. 
B) the assertion being audited only 
C) the auditor's understanding of the business and industry only 
D) neither the assertion being audited, nor the auditor's understanding of the business and industry.

Question 5

When tests internal controls do not support a previous conclusion about internal controls, the auditor should _______.

Accepted Answer

A) obtain assurances about internal control from senior management 
B) reassess internal controls at a higher level 
C) consider withdrawing from the engagement 
D) lower inherent risk related to internal control 
A) obtain assurances about internal control from senior management 
B) reassess internal controls at a higher level 
C) consider withdrawing from the engagement 
D) lower inherent risk related to internal control

Question 6

Once the auditor has determined that the data is complete and data is available for all desired fields, _______.

Accepted Answer

A) the auditor must also make sure that the data is clean and ready for analysis 
B) the auditor must also make sure that the data is clean and ready for submittal to the internal auditors for analysis 
C) the auditor should seek management's permission to proceed 
D) the data set should be turned over to the client's legal counsel for further processing 
A) the auditor must also make sure that the data is clean and ready for analysis 
B) the auditor must also make sure that the data is clean and ready for submittal to the internal auditors for analysis 
C) the auditor should seek management's permission to proceed 
D) the data set should be turned over to the client's legal counsel for further processing

Question 7

When using cluster analysis, the characteristics of the group _______.

Accepted Answer

A) must be known beforehand, and are determined by the data 
B) need not be known beforehand, but are determined by the data 
C) must be known beforehand, but are typically not determined by the data 
D) need not be known beforehand, and are typically not determined by the data 
A) must be known beforehand, and are determined by the data 
B) need not be known beforehand, but are determined by the data 
C) must be known beforehand, but are typically not determined by the data 
D) need not be known beforehand, and are typically not determined by the data

Question 8

Another name commonly given to a regression equation is _______.

Accepted Answer

A) slope line intercept 
B) a prediction equation 
C) a statistical variance equation 
D) a population distribution equation 
A) slope line intercept 
B) a prediction equation 
C) a statistical variance equation 
D) a population distribution equation

Question 9

For audits of very large organizations, the number of notable items _______.

Accepted Answer

A) could number in the hundreds 
B) could number in the thousands 
C) could number in the hundreds or thousands 
D) could number in the millions 
A) could number in the hundreds 
B) could number in the thousands 
C) could number in the hundreds or thousands 
D) could number in the millions

Question 10

The type of procedure the auditor will consider performing in regards to data reliability is a key question to be addressed in evaluating the _______ used in audit data analytics.

Accepted Answer

The answer of The type of procedure the auditor will...

Question 11

If the auditor is performing substantive tests at an interim date, _______.

Accepted Answer

A) then this testing will suffice and no further testing needs to be done 
B) the auditor should perform no further steps to update their conclusion through the date of the financial statements 
C) the auditor must perform steps to update their conclusion to the date of the financial statements 
D) the auditor should plan to conduct more tests once the audit report has been issued 
A) then this testing will suffice and no further testing needs to be done 
B) the auditor should perform no further steps to update their conclusion through the date of the financial statements 
C) the auditor must perform steps to update their conclusion to the date of the financial statements 
D) the auditor should plan to conduct more tests once the audit report has been issued

Question 12

One of the steps in preparing data for analysis is _______.

Accepted Answer

A) checking the numerical continuity of the data 
B) making sure there are fields with missing data 
C) ensuring the data is inconsistently formatted 
D) retrieving the data from the internal audit function 
A) checking the numerical continuity of the data 
B) making sure there are fields with missing data 
C) ensuring the data is inconsistently formatted 
D) retrieving the data from the internal audit function

Question 13

If a confirmation of an accounts receivable balance is not returned by the customer, the auditor might validate the receivable by _______.

Accepted Answer

A) confirming a different receivable with a different customer instead 
B) looking at evidence of subsequent cash receipt in the amount of the billing to the customer 
C) looking at evidence of subsequent cash receipt in the amount of the billing for a different customer 
D) confirming the receivable with senior management 
A) confirming a different receivable with a different customer instead 
B) looking at evidence of subsequent cash receipt in the amount of the billing to the customer 
C) looking at evidence of subsequent cash receipt in the amount of the billing for a different customer 
D) confirming the receivable with senior management

Question 14

Much of today's evidence is now typically in _______.

Accepted Answer

A) electronic form 
B) documentary form 
C) neither electronic or documentary form 
D) the custody of the client's legal counsel 
A) electronic form 
B) documentary form 
C) neither electronic or documentary form 
D) the custody of the client's legal counsel

Question 15

The most appropriate visualization to use, and the best parameters to use for the chosen visualization, _______.

Accepted Answer

A) should be decided by the internal auditors 
B) should be decided on a case by case basis 
C) should always be the same in similar circumstances 
D) should be determined by senior management 
A) should be decided by the internal auditors 
B) should be decided on a case by case basis 
C) should always be the same in similar circumstances 
D) should be determined by senior management

Question 16

Designing _______ includes identifying conditions relevant to the purpose of the test that constitute a misstatement in the relevant assertion.

Accepted Answer

substantiv

Question 17

If revenue is strongly seasonal, the auditor might decide to _______.

Accepted Answer

A) run a time-series regression that is based on the trend and seasonality in historical revenue figures 
B) run a non-statistical regression that is based on the seasonality in historical revenue figures 
C) run a time-series regression that is based on seasonality only 
D) run a time-series regression that is based on the trend only 
A) run a time-series regression that is based on the trend and seasonality in historical revenue figures 
B) run a non-statistical regression that is based on the seasonality in historical revenue figures 
C) run a time-series regression that is based on seasonality only 
D) run a time-series regression that is based on the trend only

Question 18

Cluster analysis is defined as _______.

Accepted Answer

A) the process of discovering groups (termed clusters in data science) of similar items in a set of data; items in the same group are similar, while items in different groups are not as similar. 
B) the process of discovering individual pieces of similar items in a set of data; items in the same group are similar, while items in different groups are not as similar. 
C) analyzing management techniques and administrative policies simultaneously 
D) determining which package of audit services can be sold to a client at the best possible price 
A) the process of discovering groups (termed clusters in data science) of similar items in a set of data; items in the same group are similar, while items in different groups are not as similar. 
B) the process of discovering individual pieces of similar items in a set of data; items in the same group are similar, while items in different groups are not as similar. 
C) analyzing management techniques and administrative policies simultaneously 
D) determining which package of audit services can be sold to a client at the best possible price

Question 19

Audit data analytics (ADA)_______.

Accepted Answer

A) is effective not only for identifying general types of misstatements, but is also capable of identifying specific transactions or accounts that are likely to be misstated 
B) is effective only for identifying general types of misstatements 
C) is only capable of identifying specific transactions or accounts that are likely to be misstated 
D) is effective neither at identifying general types of misstatements or capable of identifying specific transactions or accounts that are likely to be misstated 
A) is effective not only for identifying general types of misstatements, but is also capable of identifying specific transactions or accounts that are likely to be misstated 
B) is effective only for identifying general types of misstatements 
C) is only capable of identifying specific transactions or accounts that are likely to be misstated 
D) is effective neither at identifying general types of misstatements or capable of identifying specific transactions or accounts that are likely to be misstated

Question 20

If an existing customer number is taken from a former customer that no longer does business with the company and is assigned to a new customer, _______.

Accepted Answer

A) this may cause problems with the underlying data analysis 
B) then no problems should occur and the testing should be straightforward 
C) this should not complicate or cause issues with the data analysis 
D) the auditors should generate a new customer number and assign it to the old customer 
A) this may cause problems with the underlying data analysis 
B) then no problems should occur and the testing should be straightforward 
C) this should not complicate or cause issues with the data analysis 
D) the auditors should generate a new customer number and assign it to the old customer

The term notable item refers to something that _______.

False positives refer to _______.

The concept of a roll-forward process relates to _______.

Defining notable items depends on _______.

When tests internal controls do not support a previous conclusion about internal controls, the auditor should _______.

Once the auditor has determined that the data is complete and data is available for all desired fields, _______.

When using cluster analysis, the characteristics of the group _______.

Another name commonly given to a regression equation is _______.

For audits of very large organizations, the number of notable items _______.

The type of procedure the auditor will consider performing in regards to data reliability is a key question to be addressed in evaluating the _______ used in audit data analytics.

If the auditor is performing substantive tests at an interim date, _______.

One of the steps in preparing data for analysis is _______.

If a confirmation of an accounts receivable balance is not returned by the customer, the auditor might validate the receivable by _______.

Much of today's evidence is now typically in _______.

The most appropriate visualization to use, and the best parameters to use for the chosen visualization, _______.

Designing _______ includes identifying conditions relevant to the purpose of the test that constitute a misstatement in the relevant assertion.

If revenue is strongly seasonal, the auditor might decide to _______.

Cluster analysis is defined as _______.

Audit data analytics (ADA)_______.

If an existing customer number is taken from a former customer that no longer does business with the company and is assigned to a new customer, _______.

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 term notable item refers to something that _______.

False positives refer to _______.

The concept of a roll-forward process relates to _______.

Defining notable items depends on _______.

When tests internal controls do not support a previous conclusion about internal controls, the auditor should _______.

Once the auditor has determined that the data is complete and data is available for all desired fields, _______.

When using cluster analysis, the characteristics of the group _______.

Another name commonly given to a regression equation is _______.

For audits of very large organizations, the number of notable items _______.

The type of procedure the auditor will consider performing in regards to data reliability is a key question to be addressed in evaluating the _______ used in audit data analytics.

If the auditor is performing substantive tests at an interim date, _______.

One of the steps in preparing data for analysis is _______.

If a confirmation of an accounts receivable balance is not returned by the customer, the auditor might validate the receivable by _______.

Much of today's evidence is now typically in _______.

The most appropriate visualization to use, and the best parameters to use for the chosen visualization, _______.

Designing _______ includes identifying conditions relevant to the purpose of the test that constitute a misstatement in the relevant assertion.

If revenue is strongly seasonal, the auditor might decide to _______.

Cluster analysis is defined as _______.

Audit data analytics (ADA)_______.

If an existing customer number is taken from a former customer that no longer does business with the company and is assigned to a new customer, _______.

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