Question 1

The regression model should be estimated _______.

Accepted Answer

A) based only on historical data to ensure it can be used to make predictions for the current period 
B) based only on predicted future data to ensure it can be used to make predictions for the current period 
C) based only on historical data to ensure it can be used to make predictions for prior periods 
D) based only on forecasted data to ensure it can be used to make predictions for prior periods 
A) based only on historical data to ensure it can be used to make predictions for the current period 
B) based only on predicted future data to ensure it can be used to make predictions for the current period 
C) based only on historical data to ensure it can be used to make predictions for prior periods 
D) based only on forecasted data to ensure it can be used to make predictions for prior periods

Question 2

The simplest regression _______.

Accepted Answer

A) is where the prediction equation is the average of the data 
B) is where the prediction equation is the median of the data 
C) involves the use of logistic regression 
D) involves the use of time-series regression 
A) is where the prediction equation is the average of the data 
B) is where the prediction equation is the median of the data 
C) involves the use of logistic regression 
D) involves the use of time-series regression

Question 3

One of the steps in the five step AICPA process to follow when planning, performing, and evaluating results from audit data analytics (ADA) is _______.

Accepted Answer

A) consider the relevance and reliability of the data used 
B) prepare a suitable population and representative sample 
C) pass the results to management for analysis and evaluation 
D) consideration of internal control 
A) consider the relevance and reliability of the data used 
B) prepare a suitable population and representative sample 
C) pass the results to management for analysis and evaluation 
D) consideration of internal control

Question 4

Some important aspects of any audit, including audit data analytics, pertain to the _______.

Accepted Answer

A) nature, extent, and timing of the audit procedures 
B) prior auditor's assistance with audit procedures 
C) ultimate issuance of an audit opinion by senior management 
D) stock price, and ensuring it is not negatively affected by the audit 
A) nature, extent, and timing of the audit procedures 
B) prior auditor's assistance with audit procedures 
C) ultimate issuance of an audit opinion by senior management 
D) stock price, and ensuring it is not negatively affected by the audit

Question 5

Substantive tests could involve _______.

Accepted Answer

A) testing the client's system of internal control 
B) withdrawing from the engagement 
C) matching information in the accounting records with information on underlying documents 
D) delegation to the internal audit function 
A) testing the client's system of internal control 
B) withdrawing from the engagement 
C) matching information in the accounting records with information on underlying documents 
D) delegation to the internal audit function

Question 6

Data analytics can often be used _______.

Accepted Answer

A) by the internal audit function as a test of controls 
B) by the external auditors as a substantive test 
C) by the firms' actuarial staff when testing controls 
D) by specialists only 
A) by the internal audit function as a test of controls 
B) by the external auditors as a substantive test 
C) by the firms' actuarial staff when testing controls 
D) by specialists only

Question 7

Today, much of the evidence that used to exist in paper form _______.

Accepted Answer

A) is kept solely by the internal auditor 
B) now exists electronically 
C) no longer exists at all 
D) is retained by the client's legal counsel, in case of litigation 
A) is kept solely by the internal auditor 
B) now exists electronically 
C) no longer exists at all 
D) is retained by the client's legal counsel, in case of litigation

Question 8

Which of the following is not a type of regression analysis?

Accepted Answer

A) Simple linear regression 
B) Time series regression 
C) Logistic regression 
D) Slope line intercept regression 
A) Simple linear regression 
B) Time series regression 
C) Logistic regression 
D) Slope line intercept regression

Question 9

Audit data analytics can be used _______.

Accepted Answer

A) only at the beginning of the audit 
B) at virtually any phase of the audit 
C) only at the end of the audit 
D) by the internal audit function only 
A) only at the beginning of the audit 
B) at virtually any phase of the audit 
C) only at the end of the audit 
D) by the internal audit function only

Question 10

An important visualization is typically _______.

Accepted Answer

A) clear and well-labelled 
B) concise and informative 
C) accurate and not misleading. 
D) All these answer choices are correct. 
A) clear and well-labelled 
B) concise and informative 
C) accurate and not misleading. 
D) All these answer choices are correct.

Question 11

If the auditor is auditing an accounts receivable file, the auditor will want to make sure the receivable file matched the_______.

Accepted Answer

A) general ledger as of the date of the test. 
B) trial balance as of the date of the test. 
C) investing section of the statement of cash flows as of the date of the test. 
D) general ledger as of any date before the test. 
A) general ledger as of the date of the test. 
B) trial balance as of the date of the test. 
C) investing section of the statement of cash flows as of the date of the test. 
D) general ledger as of any date before the test.

Question 12

The first step in audit data analytics is _______.

Accepted Answer

A) making sure the data is complete 
B) checking the numerical continuity of the data 
C) checking both of these simultaneously 
D) checking neither of these 
A) making sure the data is complete 
B) checking the numerical continuity of the data 
C) checking both of these simultaneously 
D) checking neither of these

Question 13

Clustering can also be performed _______.

Accepted Answer

A) by graphing data in a way that allows for visual identification of groups 
B) by graphing data in a way that allows for a simple regression analysis 
C) by the internal audit function before the data is transferred to the external auditors 
D) by the client's legal counsel, if necessary 
A) by graphing data in a way that allows for visual identification of groups 
B) by graphing data in a way that allows for a simple regression analysis 
C) by the internal audit function before the data is transferred to the external auditors 
D) by the client's legal counsel, if necessary

Question 14

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

Accepted Answer

A) the auditor need not perform any more tests through the financial statement date 
B) the auditor must perform steps to update their conclusion to the date of the financial statements 
C) the internal audit function should be advised to complete any further testing deemed necessary 
D) the client should not be billed for this work in case it needs to be repeated at the financial statement date 
A) the auditor need not perform any more tests through the financial statement date 
B) the auditor must perform steps to update their conclusion to the date of the financial statements 
C) the internal audit function should be advised to complete any further testing deemed necessary 
D) the client should not be billed for this work in case it needs to be repeated at the financial statement date

Question 15

AU-C 315 Understanding the Entity and Its Environment and Assessing the Risks of Material Misstatement, A61-.A64 _______.

Accepted Answer

A) provides a discussion about how the use of information technology results in benefits and risks that may affect the reliability of data 
B) provides a discussion about how the use of information technology only 
C) provides a discussion about risks that may affect the reliability of data only 
D) relates to neither the use of information technology and the reliability of data 
A) provides a discussion about how the use of information technology results in benefits and risks that may affect the reliability of data 
B) provides a discussion about how the use of information technology only 
C) provides a discussion about risks that may affect the reliability of data only 
D) relates to neither the use of information technology and the reliability of data

Question 16

When a new company is acquired, _______.

Accepted Answer

A) there is rarely any disruption to accounting and information technology (IT) systems 
B) there is frequently a period of transition and integration of accounting and IT systems when different formats are introduced 
C) there is infrequently a period of transition and integration of accounting and IT systems when different formats are introduced. 
D) the acquiring company's systems are immediately discontinued and replaced with the acquiring company's systems 
A) there is rarely any disruption to accounting and information technology (IT) systems 
B) there is frequently a period of transition and integration of accounting and IT systems when different formats are introduced 
C) there is infrequently a period of transition and integration of accounting and IT systems when different formats are introduced. 
D) the acquiring company's systems are immediately discontinued and replaced with the acquiring company's systems

Question 17

It is common for data problems to arise when a company_______.

Accepted Answer

A) has no subsidiaries and has not acquired any other companies 
B) acquires another company 
C) changes accounting method 
D) changes an accounting estimate 
A) has no subsidiaries and has not acquired any other companies 
B) acquires another company 
C) changes accounting method 
D) changes an accounting estimate

Question 18

As with all audit procedures, auditors must _______.

Accepted Answer

A) pay little attention to the work of the prior auditor on a first-year engagement 
B) must carefully plan the nature, timing, and extent of audit data analytics (AD
A)  to be used for each client 
C) must let the client's management choose the nature, timing, and extent of ADA to be used for each client 
D) always outsource at least some of the audit work to the internal audit function 
A) pay little attention to the work of the prior auditor on a first-year engagement 
B) must carefully plan the nature, timing, and extent of audit data analytics (AD
A)  to be used for each client 
C) must let the client's management choose the nature, timing, and extent of ADA to be used for each client 
D) always outsource at least some of the audit work to the internal audit function

Question 19

An example of a vouching procedure might be _______.

Accepted Answer

A) the auditor vouching the quantities on a sales invoice to the quantities on underlying shipping documents, the existence of a bill of lading, and prices to the sales order. 
B) the auditor vouching the quantities on a sales invoice to the quantities on underlying shipping documents, the occurrence of a bill of lading, and prices to the sales order. 
C) requesting the internal audit function vouch the accuracy of all sales transactions. 
D) confirming with the client's legal counsel that there is no litigation outstanding 
A) the auditor vouching the quantities on a sales invoice to the quantities on underlying shipping documents, the existence of a bill of lading, and prices to the sales order. 
B) the auditor vouching the quantities on a sales invoice to the quantities on underlying shipping documents, the occurrence of a bill of lading, and prices to the sales order. 
C) requesting the internal audit function vouch the accuracy of all sales transactions. 
D) confirming with the client's legal counsel that there is no litigation outstanding

Question 20

The auditor should make the same judgments about the relevance and reliability of information _______.

Accepted Answer

A) when making an electronic comparison, as the auditor would consider when making a manual comparison 
B) for different audit clients within the same industry 
C) after confirming its relevance with senior management 
D) for all customers and vendors of a client 
A) when making an electronic comparison, as the auditor would consider when making a manual comparison 
B) for different audit clients within the same industry 
C) after confirming its relevance with senior management 
D) for all customers and vendors of a client

The regression model should be estimated _______.

The simplest regression _______.

One of the steps in the five step AICPA process to follow when planning, performing, and evaluating results from audit data analytics (ADA) is _______.

Some important aspects of any audit, including audit data analytics, pertain to the _______.

Substantive tests could involve _______.

Data analytics can often be used _______.

Today, much of the evidence that used to exist in paper form _______.

Which of the following is not a type of regression analysis?

Audit data analytics can be used _______.

An important visualization is typically _______.

If the auditor is auditing an accounts receivable file, the auditor will want to make sure the receivable file matched the_______.

The first step in audit data analytics is _______.

Clustering can also be performed _______.

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

AU-C 315 Understanding the Entity and Its Environment and Assessing the Risks of Material Misstatement, A61-.A64 _______.

When a new company is acquired, _______.

It is common for data problems to arise when a company_______.

As with all audit procedures, auditors must _______.

An example of a vouching procedure might be _______.

The auditor should make the same judgments about the relevance and reliability of information _______.

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 regression model should be estimated _______.

The simplest regression _______.

One of the steps in the five step AICPA process to follow when planning, performing, and evaluating results from audit data analytics (ADA) is _______.

Some important aspects of any audit, including audit data analytics, pertain to the _______.

Substantive tests could involve _______.

Data analytics can often be used _______.

Today, much of the evidence that used to exist in paper form _______.

Which of the following is not a type of regression analysis?

Audit data analytics can be used _______.

An important visualization is typically _______.

If the auditor is auditing an accounts receivable file, the auditor will want to make sure the receivable file matched the_______.

The first step in audit data analytics is _______.

Clustering can also be performed _______.

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

AU-C 315 Understanding the Entity and Its Environment and Assessing the Risks of Material Misstatement, A61-.A64 _______.

When a new company is acquired, _______.

It is common for data problems to arise when a company_______.

As with all audit procedures, auditors must _______.

An example of a vouching procedure might be _______.

The auditor should make the same judgments about the relevance and reliability of information _______.

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