An Auditor Is Most Likely to Use Audit Data Analytics

question 110

Multiple Choice

An auditor is most likely to use audit data analytics (ADA) when _______.

• A)data is available that is relevant to an audit assertion of interest, whether as a risk assessment procedure or a substantive test
• B)the available data is reliable and comes from a strong system of internal controls.
• C)the available data is relatively clean and does not require significant work to make it usable.
• D)All of these answer choices are correct

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Definitions:

Top-down Processing

A cognitive approach to perception that utilizes pre-existing knowledge, expectations, and experiences to interpret sensory information.

Gestalt Principles

A psychological theory that proposes the human brain organizes visual elements into groups or unified wholes when certain principles are applied, such as similarity, proximity, continuity, and closure.

Visual Agnosia

A disorder marked by the inability to recognize or identify objects through sight, caused by brain damage.

Occipital-temporal Pathway

A neural pathway in the brain that processes visual information, particularly related to the recognition of objects.