Question 1

When performing audit data analytics (ADA) as a risk assessment procedure, _______.

Accepted Answer

A) the auditor will have first obtained an understanding of the entity and its environment 
B) the auditor is yet to obtain an understanding of the entity and its environment 
C) the auditor will work closely with client management to confirm which risk assessment procedures they would prefer the auditor conduct 
D) the auditor should contact the prior auditor for assistance with this procedure 
A) the auditor will have first obtained an understanding of the entity and its environment 
B) the auditor is yet to obtain an understanding of the entity and its environment 
C) the auditor will work closely with client management to confirm which risk assessment procedures they would prefer the auditor conduct 
D) the auditor should contact the prior auditor for assistance with this procedure

Question 2

An issue addressed in the AICPA Guide to Audit Data Analytics is _______.

Accepted Answer

A) what to do when initial investigation identifies a large number of notable items 
B) what to do when initial investigation identifies a small number of notable items 
C) how to reconcile data analytics and revenue recognition 
D) how to ensure adherence to matching of revenues and expenses using audit data analytics 
A) what to do when initial investigation identifies a large number of notable items 
B) what to do when initial investigation identifies a small number of notable items 
C) how to reconcile data analytics and revenue recognition 
D) how to ensure adherence to matching of revenues and expenses using audit data analytics

Question 3

An auditor is performing interim testing of accounts.Should these same accounts be tested again at year-end?

Accepted Answer

Yes these accounts should be tested agai

Question 4

If the auditor uncovers a misstatement while conducting substantive testing:

Accepted Answer

A) The auditor should refer the misstatement to the internal auditors for further investigation 
B) The auditor should report the misstatement to the SEC 
C) The misstatement should immediately be reported to senior management 
D) The auditor needs to determine if the misstatement provides evidence of a weakness in internal controls. 
A) The auditor should refer the misstatement to the internal auditors for further investigation 
B) The auditor should report the misstatement to the SEC 
C) The misstatement should immediately be reported to senior management 
D) The auditor needs to determine if the misstatement provides evidence of a weakness in internal controls.

Question 5

The auditor is most likely going to perform audit data analytics (ADA) as a substantive test when the auditor has _______.

Accepted Answer

A) performed tests of controls and concluded that the entity has strong controls 
B) performed tests of controls and concluded that the entity has weak controls 
C) completed the audit and is ready to issue the audit report 
D) confirmed the procedures to be conducted with the internal audit function 
A) performed tests of controls and concluded that the entity has strong controls 
B) performed tests of controls and concluded that the entity has weak controls 
C) completed the audit and is ready to issue the audit report 
D) confirmed the procedures to be conducted with the internal audit function

Question 6

Types of regression models include _______.

Accepted Answer

A) simple linear regression 
B) local regression 
C) time-series regression 
D) All these answer choices are correct. 
A) simple linear regression 
B) local regression 
C) time-series regression 
D) All these answer choices are correct.

Question 7

A common problem with multinational organizations is _______.

Accepted Answer

A) recording dates in different formats 
B) use of the same currency in different sales territories 
C) a lack of diversity due to a multinational workforce 
D) low cash reserves and retained earnings balances 
A) recording dates in different formats 
B) use of the same currency in different sales territories 
C) a lack of diversity due to a multinational workforce 
D) low cash reserves and retained earnings balances

Question 8

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

Accepted Answer

A) looking at evidence of subsequent cash receipt in the amount of the billing to the customer 
B) asking the client to obtain the evidence and forward it to the auditor 
C) requesting the internal audit function contact the customer 
D) confirming prior receivables by the same client 
A) looking at evidence of subsequent cash receipt in the amount of the billing to the customer 
B) asking the client to obtain the evidence and forward it to the auditor 
C) requesting the internal audit function contact the customer 
D) confirming prior receivables by the same client

Question 9

If the auditor is performing substantive tests at an interim date, the auditor must perform steps to update their conclusion to the date of the financial statements.

Accepted Answer

A) True 
 B)False

Question 10

When the auditor is performing audit data analytics (ADA) as a substantive test of details of a population of transactions or balances, the auditor will have _______.

Accepted Answer

A) evaluated inherent risk 
B) evaluated audit risk 
C) confirmed the tests with management prior to conducting them 
D) already audited every account in the population 
A) evaluated inherent risk 
B) evaluated audit risk 
C) confirmed the tests with management prior to conducting them 
D) already audited every account in the population

Question 11

When the auditor is performing audit data analytics (ADA) as a substantive test of details of a population of transactions or balances, _______.

Accepted Answer

A) the auditor will have evaluated inherent risk and will likely have performed tests of controls to assess control risk 
B) the auditor is yet to evaluate inherent risk but has likely performed tests of controls to assess control risk 
C) the auditor will have evaluated inherent risk, but not yet performed tests of controls to assess control risk 
D) the auditor has not yet assessed either control or inherent risk 
A) the auditor will have evaluated inherent risk and will likely have performed tests of controls to assess control risk 
B) the auditor is yet to evaluate inherent risk but has likely performed tests of controls to assess control risk 
C) the auditor will have evaluated inherent risk, but not yet performed tests of controls to assess control risk 
D) the auditor has not yet assessed either control or inherent risk

Question 12

An auditor has sent out positive confirmations to a sample of accounts receivables customers.For confirmations that have not been returned, what should the auditor do to obtain assurance on these accounts?

Accepted Answer

The auditor should consider fo

Question 13

AU - C 500 Audit Evidence, A 27-A.34 _______.

Accepted Answer

A) provides a general discussion about the relevance and reliability of evidence. 
B) provides a general discussion about the using the internal audit function 
C) provides a general discussion about the sufficiency of audit evidence 
D) dictates that an audit opinion must always be issued by the balance sheet date 
A) provides a general discussion about the relevance and reliability of evidence. 
B) provides a general discussion about the using the internal audit function 
C) provides a general discussion about the sufficiency of audit evidence 
D) dictates that an audit opinion must always be issued by the balance sheet date

Question 14

Once the auditor has planned the application of audit data analytics, the auditor should _______.

Accepted Answer

A) access the data, make a copy of the client's data, and prepare the data for analysis 
B) seek the approval of management with respect to the tests 
C) determine how much these procedures will increase the cost of the audit and advise management accordingly 
D) access the data and prepare the data for the internal auditors to review 
A) access the data, make a copy of the client's data, and prepare the data for analysis 
B) seek the approval of management with respect to the tests 
C) determine how much these procedures will increase the cost of the audit and advise management accordingly 
D) access the data and prepare the data for the internal auditors to review

Question 15

Matching information in key data fields _______.

Accepted Answer

A) is a process where the auditor uses audit data analytics to search for key characteristics that may exist in several different databases 
B) is a process where the auditor uses audit data analytics to search for key characteristics that may exist in the same database 
C) is typically a task assigned to the internal audit function 
D) is a process where the auditor uses his or her understanding of inherent risk to search for key characteristics that may exist in several different databases 
A) is a process where the auditor uses audit data analytics to search for key characteristics that may exist in several different databases 
B) is a process where the auditor uses audit data analytics to search for key characteristics that may exist in the same database 
C) is typically a task assigned to the internal audit function 
D) is a process where the auditor uses his or her understanding of inherent risk to search for key characteristics that may exist in several different databases

Question 16

While assessing the reliability of data used in performing _______, it is important that the auditor obtains an understanding of the system of internal control and performs tests of control.

Accepted Answer

The answer of While assessing the reliability of data used...

Question 17

A notable item is an item identified, from the population being analyzed, that has one or more characteristics that, for relevant assertions, may:

Accepted Answer

A) Be indicative of a risk of material misstatement 
B) Provide information useful in designing procedures to address risks of material misstatement. 
C) Provide information useful in tailoring procedures to address risks of material misstatement. 
D) All these answer choices are correct. 
A) Be indicative of a risk of material misstatement 
B) Provide information useful in designing procedures to address risks of material misstatement. 
C) Provide information useful in tailoring procedures to address risks of material misstatement. 
D) All these answer choices are correct.

Question 18

Some key issues to consider when preparing data for audit data analytics are _______.

Accepted Answer

A) Is the data complete? 
B) Does the data need to be cleaned? 
C) Does the data agree with the general ledger and the financial statements? 
D) All these answer choices are correct. 
A) Is the data complete? 
B) Does the data need to be cleaned? 
C) Does the data agree with the general ledger and the financial statements? 
D) All these answer choices are correct.

Question 19

Professional skepticism relates to _______.

Accepted Answer

A) the concept that the auditors should look to make sure all statements and assertions are of substance 
B) the notion that the auditors should not believe any management assertions until they are proven 
C) the notion that the auditors should always believe any management assertions 
D) the notion that the auditor should view the work of the prior auditor with doubt 
A) the concept that the auditors should look to make sure all statements and assertions are of substance 
B) the notion that the auditors should not believe any management assertions until they are proven 
C) the notion that the auditors should always believe any management assertions 
D) the notion that the auditor should view the work of the prior auditor with doubt

Question 20

The auditor determines the relevance of data by _______.

Accepted Answer

A) the nature of the audit question or assertion being tested 
B) confirming its relevancy with senior management 
C) ensuring the data is unrelated to any audit assertion the auditor wishes to test 
D) inquiring of the internal auditors 
A) the nature of the audit question or assertion being tested 
B) confirming its relevancy with senior management 
C) ensuring the data is unrelated to any audit assertion the auditor wishes to test 
D) inquiring of the internal auditors

When performing audit data analytics (ADA) as a risk assessment procedure, _______.

An issue addressed in the AICPA Guide to Audit Data Analytics is _______.

An auditor is performing interim testing of accounts.Should these same accounts be tested again at year-end?

If the auditor uncovers a misstatement while conducting substantive testing:

The auditor is most likely going to perform audit data analytics (ADA) as a substantive test when the auditor has _______.

Types of regression models include _______.

A common problem with multinational organizations is _______.

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

If the auditor is performing substantive tests at an interim date, the auditor must perform steps to update their conclusion to the date of the financial statements.

When the auditor is performing audit data analytics (ADA) as a substantive test of details of a population of transactions or balances, the auditor will have _______.

When the auditor is performing audit data analytics (ADA) as a substantive test of details of a population of transactions or balances, _______.

An auditor has sent out positive confirmations to a sample of accounts receivables customers.For confirmations that have not been returned, what should the auditor do to obtain assurance on these accounts?

AU - C 500 Audit Evidence, A 27-A.34 _______.

Once the auditor has planned the application of audit data analytics, the auditor should _______.

Matching information in key data fields _______.

While assessing the reliability of data used in performing _______, it is important that the auditor obtains an understanding of the system of internal control and performs tests of control.

A notable item is an item identified, from the population being analyzed, that has one or more characteristics that, for relevant assertions, may:

Some key issues to consider when preparing data for audit data analytics are _______.

Professional skepticism relates to _______.

The auditor determines the relevance of data by _______.

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

When performing audit data analytics (ADA) as a risk assessment procedure, _______.

An issue addressed in the AICPA Guide to Audit Data Analytics is _______.

An auditor is performing interim testing of accounts.Should these same accounts be tested again at year-end?

If the auditor uncovers a misstatement while conducting substantive testing:

The auditor is most likely going to perform audit data analytics (ADA) as a substantive test when the auditor has _______.

Types of regression models include _______.

A common problem with multinational organizations is _______.

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

If the auditor is performing substantive tests at an interim date, the auditor must perform steps to update their conclusion to the date of the financial statements.

When the auditor is performing audit data analytics (ADA) as a substantive test of details of a population of transactions or balances, the auditor will have _______.

When the auditor is performing audit data analytics (ADA) as a substantive test of details of a population of transactions or balances, _______.

An auditor has sent out positive confirmations to a sample of accounts receivables customers.For confirmations that have not been returned, what should the auditor do to obtain assurance on these accounts?

AU - C 500 Audit Evidence, A 27-A.34 _______.

Once the auditor has planned the application of audit data analytics, the auditor should _______.

Matching information in key data fields _______.

While assessing the reliability of data used in performing _______, it is important that the auditor obtains an understanding of the system of internal control and performs tests of control.

A notable item is an item identified, from the population being analyzed, that has one or more characteristics that, for relevant assertions, may:

Some key issues to consider when preparing data for audit data analytics are _______.

Professional skepticism relates to _______.

The auditor determines the relevance of data by _______.

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